Transition and Transparency: How the CBI Industry is Evolving in 2024

The investment migration industry is in the era of transition, with cross cutting changes coming to the fore.  

The 2024 CBI Index released under the theme ‘Transition meets Transparency: A CBI Reset’ highlights several key trends that have reshaped the industry, with transparency emerging as the main foundation for success. 

Now in its 8th year, the CBI Index uses a nine pillar Index architecture to provide investors with a data-driven framework with which to measure the performance and appeal of global CBI programmes. Higher standards of compliance, due diligence and enhanced regulations have shown this industry to be constantly evolving, making it essential for CBI offering jurisdictions to evolve with time.  

Memorandum of Agreement Between Caribbean Five 

One of the most important changes highlighted by the CBI Index was the pioneering Memorandum of Agreement (MoA) signed by the five Caribbean countries which have CBI programmes including Antigua and Barbuda, Dominica, Grenada, St Kitts and Nevis and Saint Lucia. 

The MoA harmonised CBI practices, including minimum investment thresholds to tackle price related challenges and information sharing between Unit heads. 

The agreement mandated a minimum investment threshold of US$200,000 which brings greater consistency to programme costs.  

The CBI Index, which was topped by St Kitts and Nevis for the 4th consecutive year mentioned that, “From a demand perspective, programmes which had already implemented compliant investment thresholds such as St. Kitts and Nevis will particularly benefit from the move.” 

Transition Meets Transparency: A CBI Reset 

The CBI Index 2024 shed light on the Citizenship by Investment industry which had been full of twists and turns this year. The report said that despite the several changes introduced to the industry, two things stand out above everything else: transition and transparency. 

The industry is in transition, with greater emphasis on stronger regional cooperation, due diligence, continual programme improvement, and international collaboration. 

This transition towards greater cooperation must also engender greater transparency: transparency in due diligence processes, compliance mechanisms and investment thresholds.  

The best CBI programmes are typically the most responsive to international partners, continually gathering information to adapt and improve programming year-on-year. 

Transparency emerges as Cornerstone for Success 

In recent years, the demand for transparency has seen a major surge among both investors and governments. The potential investors now seek assurance that the CBI programmes which they are thinking to invest in are ethical, legitimate and accountable. 

Though some programmes have built due diligence and clear regulatory mechanisms into their CBI offering for decades, transparency has emerged as a key value of the wider Citizenship by Investment industry in 2024 – CBI Index 2024 

With the rising demand for transparency, several CBI programmes are now adopting more transparent practices such as clearly outlining application processes, publicly sharing performance metrics and establishing robust due diligence measures.  

Enhanced Due Diligence Procedures  

The various adaptations made to CBI Programmes have included investment thresholds, regional integration, compliance and due diligences, among other changes.  

The due diligence aspect in the CBI industry is one that holds the utmost importance with governments offering Citizenship by Investment constantly taking steps to enhance their procedures and ensure the integrity of their programmes.  

The CBI Index has prioritised Due Diligence as it is one of the key pillar this year. The Due Diligence Pillar focuses on each nation’s commitment to ensuring that their programme remains transparent and effective at evaluating potential candidates for citizenship. It is, therefore, a measure of each programme’s integrity.  

The report also highlights that the CBI programmes is adapting to this new reality of evolution and is therefore continually adding new methods of due diligence such as interviews, vetting and independent reviewing of applications to ensure that the CBI process is impartial. 

The recently signed MoA also enhanced the due diligence process, ensuring that Caribbean partners within the region were consistent in their vetting requirements. These requirements included, but were not limited to, the sharing of information on unsuccessful and withdrawn applications and the improvement of substandard due diligence processes. 

Major Trends which shaped the CBI Index 2024 

The CBI Index 2024 aimed to cater to the needs of those individuals who are looking for the best Citizenship by Investment Programme in the world.  

It is being said that globalisation, geopolitical conflict in the Middle East and Europe, and financial market volatility continue to not only exert pressure on Citizenship by Investment (CBI) programmes, but also spur on high-net-worth individuals (HNWIs) to seek an alternative citizenship. 

This is why a Plan B is more crucial than ever and an alternative citizenship has the power to offer the type of quality of life, security and economic opportunity not afforded to every country. 

The Index features a nine-pillar architecture that lends itself to rankings that reflect what high-net-worth individuals (HNWIs) value most in alternative citizenship, helping the discerning investors to choose from the best.  

Key Findings of 2024 CBI Index  

St Kitts and Nevis is leading the industry and has regained its top spot in this year’s CBI Index with 76 points. This is the 4th time that the island nation is standing at the top and is named the best in the migration industry. Dominica retains its 2nd position for the 2nd consecutive year in the overall rankings.  

Grenada maintains its top-three ranking with an overall score of 70 points while Saint Lucia joins Antigua and Barbuda in fourth position. 

In sixth position is Malta with a score of 58 points followed by Türkiye which improved its ranking from eighth to seventh with a score of 57 points.  

Vanuatu stands at 8th position with an overall score of 54 and Egypt retains its ninth ranking but ups its score by two for a total of 53 points. Austria, the only other EU-member state, maintains its tenth place ranking with a score of 49 points.  

Meanwhile, Jordan and Cambodia round out the CBI Index 2024 in 11th and 12th positions with scores of 45 and 44 respectively.  

CBI Programmes Continues to Adapt 

As the world is changing, it is coming to the front that the strongest CBI programmes build resilience into their offerings, constant staying ahead of industry changes and geopolitics across the world. These programmes can stay one step ahead by making changes or adding regulations as well as restrictions to their programmes.  

The Caribbean presents perhaps the best example of regional integration as it relates to CBI. Each of these countries standardised their CBI programmes by putting forward integrated regional standards. These ensure that no country is out of step with the region, elevating the practices of all countries involved. 

By continually assessing new information, standards, and methods for collaboration, adaptable CBI programmes can stay ahead of their more stagnant peers. 

Regional integration, compliance, due diligence, investment thresholds, and banned nationalities all comprise the strong adaptations that strong CBI programmes have made to stay ahead of rising tides in what is being deemed as an exciting time for the industry.