Due Diligence

As we mentioned in the previous blog, an integral component of the Dominica Economic Citizenship Programme and the Skitts & Nevis Citizenship by Investment Programme is the Due Diligence Investigation .   The Agencies that undertake this investigation are selected by the Governments of  both islands.  However, in the case of the Dominica Programme, the applicant may make direct contact with the Agency or he may opt to have his agent laise with the Due Diligence Agent on his behalf, while with that of St. Kitts, the Government initiates the contact.  This means that, whereas with the Dominica Economic Citizenship Programme,the applicant have flexibility to negotiate price with the Agencies (the more countries in which the applicant has resided the higher the price), with the St. Kitts & Nevis Citizenship by Investment Programme (CIP), there is no flexiblility.  In fact, the due diligence fees are payable to the Government of St. Kitts & Nevis at the time the application is submitted.

Most applicants are not ruffled by the due diligence investigations.  Actually, they welcome it as it demonstrates the security of the programmes and the seriousness of the Governments about protecting their citizens and reputation of the programmes.  However, there are those who are fearful that the vagaries of their youthful days may catch up with them!  Although parking tickets obtained during one's teenage years may not negatively impact one's application some forty years after the fact, more serious offences do!

Neither the applicant nor the promoter is privy to the Due Diligence Report!  So what happens if an applicant is refused and in his opinion the refusal was based on an unfavourable Due Diligence Report?  What is the applicant's recourse? Can he obtain a copy of the report?

Interestingly, we were faced with a similar situation a few months ago.  A client, who was denied citizenship, requested a copy of his Due Diligence Report claiming that an adverse report contributed to his refusal.  The Government responded as follows:

"The due diligence report which forms part of the application package for citizenship of the Commonwealth of Dominica under the Economic Citizenship Programme, is the property of the Government and we are not in the position to publish or make any section (s) of the said report available to any third party".

Although to some this response may seem harsh, in Dominica, applicants are given opportunities during the application process to prove themselves worthy of the second passport.  The Disclosure Form and the Interview section afford the applicants opportunities to explain issues that may potentially yield an unfavourable due diligence report.

In St. Kitts, on the other hand, if the need arises, the Minister may appoint a panel to review an appli-

cation.  This means that an individual whose application has been denied may request a review of his application.  However, the individual must be prepared to present himself at the review as he may be requested to appear in person before the panel. 

The Due Diligence Investigation is fundamental to the St.Kitts & Nevis Citizenship by Investment Programme and Dominica Economic Citizenship Programme  It is part of the Governments' continuing efforts to maintain the integrity of their programmes and protect the security of their citizens. We are promoters of both the St. Kitts & Nevis Citizenship by Investment Programme and the Dominica Economic Citizenship Programme.

 

Contact us at: lawrencea@cwdom.dm

 

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Fast Passports

In this current international economic crisis, persons the world over are seeking ways to improve their security - be it financial, social or otherwise.  To many individuals, bolstering security means obtaining new citizenship.  New citizenship translates into fast passports!

Prior to 9/11 few countries offered foreigners new citizenship (without some form of residency), since the terrorist attacks on the US, the number of countries has dwingled. Fast passports come in the form of Economic Citizenship.  Not many countries allow such a program.  In the Caribbean, there are currently two islands: The Commonwealth of Dominica (not the Dominican Republic) and St.  Kitts & Nevis.  But how fast is fast?

Obtaining a fast passport is relative.  However, less than a year seems acceptable .....between three to six months very acceptable. Under three months............. Possible .......if all documents are submitted correctly and in a timely manner.  For example, the application must be submitted with all the required forms completed and accompanied by supporting documents.  The absence of such requisites will result in unavoidable delays.

Another way to get passports fast is by initiating the due diligence process prior to engaging an Approved Economic Citizenship Agents. The Commonwealth of Dominica demands due diligence check on all applicants for its Economic Citizenship Programme.  Such an investigative research requires time.  It seems prudent that the applicants start the due diligence process before he/she contacts an Approved Economic Citizenship Agent.  Approved Due Diligence Agencies are found on the Government Website. It is important to indicate that contrary to popular belief, the services of the Approved Economic Citizenship Agent do not extend to investigative background checks on the applicants.  Moreover, the Due Diligence Agencies have been selected by the Government and they present their reports directly to the Government.  In order words, neither the applicant nor his/her contracted agent is given copies of the report!

To date the longest waiting period is after the interview! It might be felt that once the applicants get to the interview the rest is easy sailing.  However, that is not necessarily true. The process of finalizing documents after the interview and having the Minister affix his signature to the Certificates of Naturalization is a lenghty process in most instances. There is no comprehensible explanation for the avertible delays!

So, the idea of fast passport may work if the requisite documents are submitted on time, Due Diligence Report submitted together with application documents or shortly afterward. Also, if we start the count after the interview! So, Stop putting it off! Start the Application Process today! Contact us at: lawrencea@cwdom.dm or offshore@cwdom.dm or call on skype: tryoffshore.




 

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Dominica Economic Citizenship Programme

Despite the numerous social and economic challenges experienced worldwide, the Dominica Economic Programme continues to rank at the top of the list for most persons seeking to obtain a second passport or dual citizenship.

Among the factors contributing to this coveted position are the following:

• Reputability: The Commonwealth of Dominica enjoys a good reputation regionally and internationally including the US, UK, France and Canada. The holder of a Dominican Passport enjoys that esteem, thereby, facilitating business, educational  and traveling activities.
• Security: All applicants for the Dominica Economic Citizenship Programme are subjected to a Due Diligence investigatory process. The background checks are thorough! This reassures holders of Dominica passport - knowing that new holders are not of ill-repute.  The Due Diligence Agencies are backed by many years of experience.  Bishops Investigative Services have been in existence for a hundred and fifteen (115) years and have offices or associated offices in over two hundred countries worldwide.  Financial Examinations & Evaluations Inc. is present in most countries around the world inclusive of Central Asia, China, Japan North and Latin America and Central  and Eastern Europe. Both Agencies use leading technology capabilities along with experts in computer forensics, complex financial translations, corporate security and communication networks and asset location to ensure the integrity of the Dominica Passport.  In addition, the Government of Dominica has embassies/consulate in numerous locations to assist the holders of Dominica Passport.
• Cost-effectiveness: Despite the hike in Dominica Economic Citizenship fees in September, 2012, Dominica appears to give the best value for money in a number of areas.   Salient among them is the skepticism expressed by non-locals about owning property in this hurricane prone region as is the case of St. Kitts & Nevis Economic Citizenship Programme. Dominica's Citizenship by investment programme does not require investment in real estate property!
• Professionalism/Professional agent services: The success rate for Alick Lawrence, government approved agent, is phenomenal. With over twenty years experience in processing Economic Citizenship applications, Alick Lawrence Chambers handles over ninety percent (90%) of the Dominica Economic Citizenship applications and provide professional and confidential service to all its clients.

For students hoping to migrate to continue their education, for entrepreneurs, business people, or simply for the ease of traveling and doing business the Dominica passport offers many opportunities.

Email: offshore@cwdom.dm
          lawrencea@cwdom.dm
Skype: tryoffshore
Tel:      1 (767) 44 87697

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WHICH PASSPORT- ST.KITTS & NEVIS OR DOMINICA? - A COMPARATIVE STUDY

                                                                                         

                          OR

The islands of St.Kitts & Nevis and Dominica still remain the only two Caribbean nations where one can buy citizenship.  Individuals contemplating applying for dual citizenship or obtaining a passport from St. Kitts & Nevis or Dominica often ponder over which is the best option in terms of costs and opportunities.  To assist with that decision we have collated information on the Economic Citizenship Programmes offered by both islands and present a comparative cost study of the two.

Cost of Citizenship

In the case of St. Kitts & Nevis, if one selects SIDF there is a security fee (see table). If one chooses the Real Estate option there is the purchase cost (minimum purchase) plus the registration fee and there is also a security fee payable to the Government (see table).

ECONOMIC CITIZENSHIP - COMPARATIVE ESTIMATED COSTS (USD)                                                                                      ST. KITTS - NEVIS                               DOMINICA                                      SIDF                            REAL ESTATE                     DIRECT INVESTMENT       AP, SP &  AP SP & 1      AP, SP &   AP, SP & 1       AP, SP &  AP, SP &  FEES SINGLE AP & SP    2 < 18 18-25 yrs SINGLE AP & SP  2 < 18 18-25 yrs SINGLE AP, & SP  2 < 18 3 < 18**                           *Application fee (1) 293 585 1170 878 293 585 1170 878 1000 1000 1000 1000 Processing fee  0 0 0 0 0 0 0 0 200 400 800 600 Courier fee  120 120 120 120 120 120 120 120 0 0 0 0 Legal fee (2) 0 0 0 0 0 0 0 0 0 0 0 0 Security fee 7500 11500 19500 15500 7500 11500 19500 15500         Naturalization Fee 0 0 0 0 0 0 0 0 550 1100 2200 1650 Passport fee 250 500 1000 750 250 500 1000 750 0 0 0 0 Stamp fee 0 0 0 0 0 0 0 0 6 12 24 18 Gov't Interview Fee 0 0 0 0 0 0 0 0 3000 3000 3000 3000 Contribution (3) 250000 300000 300000 350000 0 0 0 0 100000 175000 200000 250000 Minimum Purchase  0 0 0 0 400000 400000 400000 400000 0 0 0 0 Due Diligence (4) 7500 11500 19500 19500 7500 11500 19500 19500 4000 5000 7000 7000 Registration fee  0 0 0 0 50000 75000 125000 125000 0 0 0 0 Total 265663 324205 341290 386748 465663 499205 566290 561748 107756 184512 213024 262268 Source: Adapted from: A Second Passport from St. Kitts & Nevis unlocks a New World of Opportunities, May 17, 2012, by Mark Nestmann (nestmann.com)

* VAT Included 17% AP - Applicant SP - Spouse (1) Dominica per investor (non-refundable)        Dominica's Programme is VAT exempt (2) Variariable with Solicitor (3) St.Kitts -payable upon approval of application.         Dominica - payable before interview       In the case of Real Estate - Government fees (4) Due diligence mandatory from 16 years       Depends on the number of place one has resided in **Three dependants under 18 yrs

There are other fees related to the purchase of property in St.Kitts-Nevis which were not factored in this comparative study for obvious reasons.  These fees include:

·         Alien Landholding License Application   ……………………. US$1,500.00 per applicant

·         Assurance Fund                                     ……………………. Purchase price divided by 500

·         Purchase & Sale Agreement                   ……………………..1% of the Purchase Price

·         Memorandum of Transfer                       .…………………….1% of the Purchase Price

·         Government Registration Fee                  ......…………………US$2.70 (approx.)

·         Surveyor’s Fee                                       ...…………………...US$327.00 per acre (approx.)

·         Stamp Duty (on some properties)            ……………………..2.5% - 6% of the Purchase Price

Naturally, after the property has been purchased there are the costs that go with owning and maintaining the property.

On comparing the three investment-type-options (SIDF, Real Estate, Direct Investment), the most expensive is the Real Estate option (for example single, $465, 663 and a family of four  with two children less than eighteen (18) years, $566,290) followed closely by SIDF (for example single, $265,663 and a family of four with two children under eighteen (18) years, $341,290).  The least expensive is Dominica’s Direct Investment option (single, $107,756 and a family of four with two children less that eighteen (18) years $213, 024).

However, if the individual is interested in owning property in the Caribbean and is willing to dispense with that sum of money, then the Real Estate seems reasonable.  This is because the purchaser may resell the property after five years and hopefully make a profit on that asset.  If however, the individual wants a second passport with little or no strings attached, then the Real Estate might not be the best option. The individual can also become a citizen of Dominica at a cheaper rate and purchase property in Dominica at a fairly reasonable price.

Opportunities

The next step after analyzing the costs of the dual citizenship is to determine your travel possibilities or your visa free travel options with the Caribbean passports. A St. Kitts & Nevis passport allows the holder visa free travel to numerous countries including the Schengen countries, their neighbours, the UK, and Canada for ninety (90) days. Whereas a Dominica passport holder can enter one hundred and forty countries visa-free or with visa upon arrival among these are the UK, Isle of Man, the fifteen (15) Caricom Member States and the five (5) Associated Member States among others. A Dominica Passport holder can obtain hassle-free visa to Canada and the USA and the Schengen countries.

Not all dual nationality seekers will be as fortunate as the young Liam Cocoran! Notwithstanding, young and old will be affected as the more developed countries namely the EU countries, UK, and the Netherlands follow in the footsteps of the USA to tighten their grip on the finances of their citizens. A second passport from Dominica or St.  Kitts & Nevis might just be the answer!

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ALICK LAWRENCE, SENIOR COUNSEL (SC)

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WHICH SECOND PASSPORT - ST. KITTS & NEVIS OR DOMINICA (2)?

Source: http://www.un.int/wcm/content/site/dominica

Dominica

On September 1, 2012, the Government of Dominica Implemented new fees in respect of its Economic  Citizenship Programme.  Two options are available under the Second Citizenship Programme: single option and family option. 

Single Option

Under this option, the application for dual citizenship (single or married) is the “sole” applicant. This single applicant makes an investment of US$100,000.00 towards the Government’s Public and Private Sector financing.

Family Option

The family option allows for a minimum cash investment of US$175,000.00 toward the country’s National Development.  The table below captures the fees in respect of the family packages.

FAMILY APPLICATION	FEES
Applicant + Spouse	A non-refundable investment of US$175,000.00
Applicant  + Spouse + two children below 18 years	A non-refundable investment of US$200,000.00
Applicant  + Spouse + more than two children below the age of 18 years*	A non-refundable investment of US$200,000.00 and US$50,000.00 for every additional person 18 years and below.

 *An eighteen year old is an adult and may apply as a single applicant

Due Diligence & Other Fees

The due diligence is influenced in part by the number of countries in which the applicant has lived.  Applicants contact the Investigative Agency directly. Due diligence fees can be negotiated. Fees range from US$5,000.00 to US$7,000.00 (approximately).

Other fees applicable to Dominica Economic Citizenship Programme include:

Miscellaneous	Amount
Application fee	US$1,000.00 per Investor (non-refundable)
Processing fee	US$200.00 per Applicant (non-refundable)
Naturalization fee	US$550.00 per Applicant
Stamp fee	US$  15.00 per Applicant

                                                                          (…………………….to be continued)

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WHICH SECOND PASSPORT - ST. KITTS & NEVIS OR DOMINICA?

source: http://www.nickryan.net/images/caribbean-st-kitts.jpg

When it comes to deciding which dual citizenship program to select - St. Kitts & Nevis or Dominica – second citizenship seekers seem to find themselves in a quandary. Of-course, the final decision is determined by a number of factors, the least among which is not one’s finances.

St. Kitts & Nevis

Basically, the dual citizenship programme offered by the Government of St. Kitts & Nevis provides people who are desirous of obtaining a second passport with two options: invest in real estate in St. Kitts & Nevis (under the Real-Estate option) or make a cash donation to the Government (under the Sugar Industry Diversification Foundation (SIDF) option).

Real-Estate Option

Under the real estate option, the applicant has to make an initial outlay of at least US$400,000.00 on a Government approved real estate project. There is a five-year freeze before the investor may dispense of the property.  Additionally, there are fees and taxes to be paid before (legal fee, for example) and after finalization of the documents (annual land & property tax and property insurance).

Further, on approval in principle of an application, the following fees for application and registration regarding the application for citizenship apply:

• US$50,000.00 for the main applicant
• US$25,000.00 for the spouse of the main applicant
• US$25,000.00 for each child of main applicant under 18 years
• US$50,000.00 for each qualified dependant of the main applicant between 18 and 25 years other than his spouse

Sugar Industry Diversification Foundation (SIDF)

Under the SIDF option, the investor is required to make a contribution to a public charity program to help with the diversification strategy implemented since the collapse of the Sugar Industry.  Under this option, the amounts are inclusive of all Government fees payable for the main applicant and his or her dependants with the exception of the fees for due diligence background checks:

• US$250,000.00 for Single Applicant
• US$300,000.00 for Applicant with up to three dependants
• US$350,000.00 for Applicant with up to five dependants
• US$450,000.00 for Applicant with up to seven dependants
• US$50, 000.00 for additional contribution for each dependant above seven dependants/
• US$50,000.00 for additional contribution for each qualified dependants over 18 years

Due Diligence

Due diligence background check is mandatory for all applicants and each dependant over 16 years.  Under both options, due diligence and processing fees for the main applicant is US$7, 500.00 and US$4,000.00 for each dependant over 16 years.

                                                                                    (........to be continued)

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WHAT TO LOOK FOR WHEN DECIDING ON DUAL CITIZENSHIP

The decision to obtain a second nationality is an important one. Prospective applicants often seek some guidance to help ensure that they are making the right decision. Below, I highlight a few of the main issues that should be considered when selecting choice of country for dual citizenship:

• COST

The overall cost of the dual citizenship application may be a key determinant in obtaining a second passport.  The various options (single or family), package deals, sourcing relevant personal documents, processing fees, stamps, travel related to interview, background check, passport application, shipping of documents etc. all generate costs which need to be  factored in.

• OFFEROR

The country issuing dual citizenship is another important factor when deciding on getting a second passport. The political and economic environment of the offering country must be considered as well as its reputation internationally.

• ACCESSIBILTIY

People desire dual citizenship for various reasons including travel and business.  Therefore, of paramount importance is the benefit to be derived (in terms of accessibility to others countries) from having such a passport.

• AGENT

Most countries offer dual citizenship via an agent or agents.  It is imperative to select one with experience and good repute.  Government recommendation, suggestions from friends etc. are important sources to tap into.

• REQUIREMENTS

The criteria for eligiblity for second citizenship vary from country to country.  One must be satisfied or comfortable with the enquiries, demands or requests in regards to the application.  This does not mean, however, that one should option for a country which does not perform due diligence or vice versa.

• SPEED

When planning to spend a sizeable sum of money on becoming a citizen of your chosen country the speed in processing your application is crucial.  Once your money has departed from your hands you would like to have that second passport immediately.  Provided all requisite documents have been submitted on time, the process should not take more that three (3) months.  So, please ensure that you sign and submit the necessary forms, accompanying documents etc.

This list is by no means exhaustive.  Feel free to add your suggestions to it.

http://www.tryoffshore.com/

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Second Citizenship - For Whom?

It is a very mixed group of people who are interested in Dominica's second citizenship programme these days.  Firstly, there are those applicants whose own national passport is worthless as a travel document.  By this I mean they can visit very few countries without visas, and such visas are difficult to obtain with their national passport. Secondly, there are others who, although not falling in the first category, desire, mainly for security reasons, to use a different passport to travel to certain countries. Thirdly, there are some who are concerned about the long term stability of their own country and wish to hold Dominica Citizenship as a "fall back" position. This is the most surprising group because included in this group are applicants not only  from countries which are generally recognized as unstable potentially unstable but also from the countries which one would never consider to be in that category.  Applicants from these latter countries are becoming increasingly disillusioned and pessimistic with the state of affairs in their countries.  They fear the worse and want to have another country they can call home if their fears were to happen. Another group consists almost exclusively of wealthy business people who have resided and have done business in third countries which will, nevertheless, not grant them nationality status.  These people cannot or do not wish to return to their country of origin and require a country to call their home. Then, finally, there is the "miscellaneous" group - applicants who for very peculiar and all very legitimate reasons require a second nationality or passport.  These applicants provide the most interesting stories.

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