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From our correspondent
Roseau, Dominica – November 13 2026 — St. Kitts and Nevis has announced plans to phase out its Citizenship by Investment (CBI) Programme, potentially ending one of the Federation’s most significant sources of government revenue. Prime Minister Dr. Terrance Drew disclosed that his administration had formally communicated its intention to discontinue the programme to the European Union, with negotiations expected to establish an appropriate transition period. The decision came amid mounting international scrutiny of investment citizenship schemes, particularly concerns surrounding financial crime, inadequate background checks, passport security and the potential misuse of citizenship to circumvent international sanctions. The move also raised questions about the long-term sustainability of an economic model that generated approximately EC$6.5 billion between 2008 and 2025, according to figures presented by Drew.
Concerns about the integrity of the St. Kitts and Nevis programme were documented by the United States Department of the Treasury as far back as May 2014. Its Financial Crimes Enforcement Network (FinCEN) issued Advisory FIN-2014-A004, warning that foreign individuals were exploiting the programme to obtain passports that could conceal their identities and geographical backgrounds while facilitating sanctions evasion and other illicit financial activities. The advisory specifically identified Iranian nationals designated by the US Office of Foreign Assets Control (OFAC) who had reportedly obtained St. Kitts and Nevis passports. FinCEN also criticised weaknesses in the programme’s screening arrangements, noting that Iranian nationals continued to secure citizenship despite an earlier government announcement suspending their participation. Importantly, the advisory was formally rescinded on February 24, 2026, following reported improvements to the programme’s regulatory and due diligence framework.
The United Kingdom also raised concerns about the programme’s potential exploitation. A 2014 UK warning, subsequently referenced in a House of Commons Digital, Culture, Media and Sport Committee report, highlighted the possibility of individuals acquiring St. Kitts and Nevis passports to evade international sanctions or engage in financial crime. The parliamentary investigation identified several individuals who had obtained citizenship through the programme and were subsequently associated with serious financial or criminal investigations. These included Iranian nationals later sanctioned by the United States, as well as individuals connected to alleged fraud and other financial misconduct. The report also examined concerns surrounding the removal of place-of-birth information from passports, a practice that raised questions about identity verification and the ability of international authorities to establish the true backgrounds of passport holders.
An investigation by the Organized Crime and Corruption Reporting Project (OCCRP), conducted in collaboration with the Daphne Caruana Galizia Foundation, uncovered further concerns about the programme’s administration and the management of funds generated through passport sales. The investigation found that Henley & Partners, the international firm involved in marketing the country’s citizenship programme, had helped establish the Sugar Industry Diversification Foundation (SIDF), which received substantial contributions from citizenship applicants.
OCCRP examined investments made by the foundation in two ventures linked to an associate of Henley’s chairman, including the Kittitian Hill luxury resort development, which received more than US$7.9 million but remained largely unfinished years after its projected completion. The investigation also identified applications processed by Henley involving individuals with backgrounds linked to alleged criminal activity and fraud. Henley & Partners disputed wrongdoing and maintained that it had complied with applicable laws and regulations.
Further evidence of weaknesses in the programme emerged from investigations conducted by the St. Kitts and Nevis government itself. In April 2025, authorities disclosed that a review of 158 citizenship applications and associated contracts had uncovered cases in which applicants failed to pay the legally required investment amounts despite making representations that they had fulfilled their obligations. Thirteen individuals and their dependants subsequently had their citizenship revoked, while two international marketing agencies, Latitude Consultancy and RIF Trust, were permanently blacklisted for allegedly facilitating below-minimum investments and misleading applicants with promises of special discounts. The government described these practices as violations of the country’s CBI regulations. These findings added another dimension to the international concerns surrounding the programme, although authorities also pointed to subsequent reforms intended to strengthen oversight and accountability.
Against this background, Drew maintained that protecting the Federation’s international standing and financial relationships had become more important than preserving the programme indefinitely. He indicated that the government intended to pursue alternative economic opportunities, including geothermal energy development in Nevis, an electricity connection between the two islands, solar energy investments, food security initiatives and increased foreign direct investment.
Existing CBI-funded projects would continue, while employees of the Citizenship by Investment Unit would be reassigned to support new investment initiatives. Although the US FinCEN advisory was rescinded in February 2026, the historical concerns documented by American and British authorities, alongside OCCRP’s investigative findings and subsequent domestic investigations, illustrate the regulatory and reputational challenges that have confronted the programme. The precise closure date and arrangements for transitioning away from CBI revenue remained subject to negotiations with the European Union.
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