Governor Antoine Updates CIP/CBI Stakeholders on Progress Towards Establishing Regional Regulator
Governor of the Eastern Caribbean Central Bank (ECCB), Timothy N. J. Antoine has identified “political support” as being critically important for the successful establishment of a regional regulator for the five countries that offer Citizenship by Investment Programmes (CIP/CBI) in the Eastern Caribbean Currency Union (ECCU).
Governor Antoine said this on Tuesday, 3 June during remarks at the St Kitts and Nevis Investment Gateway Summit held at the St Kitts Marriott Hotel. There, the Governor provided an update on progress made towards establishing the CIP/CBI Regional Regulator.
The Governor currently serves as Chairman for the Interim Regulatory Commission (IRC), which the five CIP/CBI countries appointed to oversee the establishment of the Regional Regulator — an effort that is being led by the ECCB.
The Regional Regulator will supervise, regulate and license the five ECCU Citizenship by Investment Programmes: Antigua and Barbuda, Commonwealth of Dominica, Grenada, Saint Christopher (St Kitts) and Nevis, and Saint Lucia
During his address to CIP/CBI stakeholders at the event, Governor Antoine said that, in the past three months, consultations took place with all the players in the CIP/CBI industry — such as government, leaders of opposition, local agents, developers, financial intelligence units, and banks. “I want to be very clear: we took a deliberate step. It required us to travel and engage in an intense schedule, but we did not want to draft [a legal framework] before we engaged you,” Governor Antoine said, adding that: “Our preparation has been enriched by what you have shared with us.”
Governor Antoine also made mention of consultations that have been held with international partners, namely the United States, the United Kingdom, and the European Union, as well as with regional Attorneys General.
“We have now submitted our second draft to our Heads — our Prime Ministers,” Governor Antoine said. The Governor also said that the plan is to share the draft with CIP/CBI stakeholders this month for their review and comments, and to finalise it by the end of July before making a final submission in early August.
“Our [the IRC’s] deliverables are a draft agreement and bill, which we have now submitted; a list of policy issues, which we have also submitted; and a risk assessment and protocols, which we are working on and will submit once finalised,” Governor Antoine added.
The Governor further stated that a single enabling law for all Citizenship by Investment Programmes and market participants would work similarly to the ECCU Banking Act, which applies to all member countries in the Currency Union.
The Regional Regulator will set common standards covering due diligence, marketing, outsourcing, stakeholder engagement, and other important aspects of the CIP/CBI industry; monitor and enforce compliance with the standards; and engage stakeholders locally, regionally, and internationally. Common standards, Governor Antoine said, would close legal loopholes, thereby minimising regulatory arbitrage as well as unfair competition among the five ECCU countries that offer the programmes.
In closing, the Governor identified several critical factors for the successful establishment of the Regional Regulator — the first of which, he said, is political support. “We believe we have that support, and that has driven us as we have proceeded. The Heads asked us to do this and the Heads will take this to Parliament and enact before the end of the year,” Governor Antoine said.
