St Lucia introduces “COVID-19” offers in desperate bid to attract applicants

In yet another attempt to increase applications under the St Lucia Citizenship by Investment Programme, St Lucia released its Citizenship by Investment (Amendment) Regulations, 2020, reducing the investment amounts under the Programme’s National Economic Fund option and implementing a Limited Time Offer under its government bonds option.

This is not the first time that St Lucia has dropped its investment threshold. In 2017, St Lucia decreased the required contribution under the National Economic Fund by 50%, from US$200,000 to US$100,000. The price drop did not achieve its desired effect however and St Lucia’s programme has failed to gain traction compared to other Caribbean citizenship by investment programmes. In various citizenship by investment industry indexes designed to compare the strengths of such programmes, St Lucia consistently ranks below its Caribbean counterparts.

Part of the reason behind the St Lucia Citizenship by Investment Programme’s poor standing in the industry is due to scandalous claims made by the country’s opposition government. Ernest Hilaire, Deputy Leader of the Opposition, infamously claimed that if his party returns to office, it will hike the National Economic Fund’s threshold back up to US$200,000. On top of this, Hilaire stated that his party would require those who received citizenship for the current US$100,000 threshold to pay the difference and complete an additional due diligence check. These statements by Ernest Hilaire carry particular weight given that Hilaire was the Chairman of the St Lucia Citizenship by Investment Programme when it received its first application in 2015 – making St Lucia an unattractive destination for second citizenship for many potential investors.

Worryingly, the Limited Time Offer under the government bonds option of the programme introduced by the 2020 Regulations, has been dubbed the “COVID-19 Relief Bonds Offer”. In an attempt to attract new applicants, notwithstanding the misery and tragic loss of life caused by the virus worldwide, St Lucia appears to be attempting to benefit from the COVID-19 pandemic. Such behaviour is at best unsavoury and at worst could set St Lucia in bad stead with the European Union, jeopardising St Lucia’s chance of having its visa-free arrangement reinstated.

A WIC News correspondent recently spoke to Asif Patel, a high net worth individual of Middle Eastern origin. According to Patel, as a potential investor, he would never consider applying to St Lucia’s Citizenship by Investment Programme. “Despite the attractive prices,” Patel says, “I would rather seek a second citizenship in another Caribbean nation and have greater piece of mind that my second citizenship really would be for life.”

With St Lucia’s next general election looming, the status of those with second citizenship of St Lucia hangs in the balance. Given the statements made by the Opposition, it is unlikely that further price reductions will mitigate the damage already done to the programme’s reputation.