Category: News

PORT OF SPAIN, St Kitts (WINN) — Revenues earned from the sale of citizenship are supporting the economic recovery being experienced in the Eastern Caribbean countries.

According to the International Monetary Fund (IMF) country report on the Eastern Caribbean Currency Union (ECCU) published on Tuesday, the region’s economic recovery is gaining ground, supported not only by citizenship by investment (CBI) inflows, but also improved tourism arrivals, low oil prices, and improved government fiscal management.

The IMF says however that the region still faces many vulnerabilities that are hindering growth in the medium-term outlook, including a weak banking system, high debt, susceptibility to natural disasters, and competitiveness.

Despite a nearly 50% decline in economic growth from 6.2% in 2013 to 3.5% in 2016, St Kitts and Nevis is still leading the region in projected growth for 2017 at 3.5%.

St Vincent and the Grenadines has the second highest projected growth with 3.1%, followed by Dominica at 2.8%, Grenada at 2.7%, Anguilla at 2.6%, Antigua and Barbuda at 2.5%, St. Lucia at 1.9% and Montserrat at 1.7%.

The ECCU’s overall projected growth for 2016 is 2.1% and for 2017, 2.6%.

Republished with permission of West Indies News Network

Source: caribbeannewsnow.com
Posted: November 2016

October 31, 2016 — Ottawa, Ontario – The Honourable John McCallum, Minister of Immigration, Refugees and Citizenship, announced today the Government of Canada’s intention to lift the visa requirements for Romanian and Bulgarian citizens on December 1, 2017. It demonstrates the importance that the Government of Canada places on its relationship with both countries and with the EU more broadly.

In the lead-up to the full visa lifts, Canada intends to implement partial lifts for eligible Romanian and Bulgarian citizens travelling to Canada for May 1, 2017. Romanian and Bulgarian citizens who have held a Canadian temporary resident visa in the past 10 years or who currently hold a valid United States (U.S.) non-immigrant visa would not require a temporary resident visa and would be able to fly to or transit through Canada with an Electronic Travel Authorization (eTA) instead of a visa.

After the visa lifts, Canada would reserve the right to re-impose the visa requirement on Romania or Bulgaria should irregular migration trends increase significantly from either country.

Canada is working closely with Romania and Bulgaria to put in place the conditions for a sustainable visa lift. These efforts have intensified in recent months. Visa-free travel in the future, just like the Comprehensive Economic and Trade Agreement (CETA), would create opportunities to increase trade and travel between our countries.

Over the coming months, Canadian officials will continue to work with the European Commission and with the Romanian and Bulgarian governments on migration-related issues to lay the groundwork for a successful transition to visa-free travel.

“Romania and Bulgaria have worked very closely with us, and we will continue to collaborate on the transition to visa-free travel in order to ensure that once the visa lifts occur, they are sustainable over the long term. Lifting the visa requirements for Romania and Bulgaria will mean visa-free travel to Canada for citizens of all EU member states. We will all benefit from the increase in travel and trade that results,” said John McCallum.

Source: news.gc.ca/web/article-en.do?nid=1145359

BASSETERRE, St Kitts — The chief executive officer at the St Kitts
and Nevis Sugar Industry Diversification Foundation (SIDF), Terrance Crossman, has been terminated. Crossman was handed a termination letter on Friday. The reasons for his dismissal are unclear.

The dismissal comes days after Prime Minister Dr Timothy Harris indicated during his most recent press conference that ongoing investigations into the foundation were just about completed and the SIDF will soon be brought under Parliamentary scrutiny, as promised by his Team Unity administration prior to the 2015 elections.

“The legislative framework being pursued by two QCs in our country is substantially complete, last I inquired they should be submitting it to us by next week. However they advised that it would be helpful to get the final report to see how that can be tweaked in light of any issues that may be pertinent to the new governance agenda. The commitments which we made in the manifesto to greater transparency would certainly be embedded in the next legislative creation that we would bring in relation to the SIDF and it may be called another name so that we distance ourselves from that grievance and abomination it turned out to be,” Harris said.

The SIDF and its operations have come under heavy criticisms over the years over its lack of transparency and accountability. It was sharply criticized also for the fact that it operates as a private entity with funds generated from the sale of citizenships — a national commodity and privilege

“We will not recoil from any of the commitments which we made with respect to the SIDF, that there must be public accountability, there must be regular reports being submitted to the parliament so that the people of the country can know more and become a part of what is happening with their patrimony,” Harris added.

He indicated at the most recent press conference that the SIDF investigation was virtually complete except for necessary consideration and review by cabinet.

“What has happened is once you get in to the tangled web there’s a lot more work that needed to be done for them to bring the kind of assurances. We expect very shortly and before the budget presentation, to be able to make a statement to the country in relation to that. It is not unheard of either in relation to a regular audit that you can have delays more so for the investigative nature of this one because part of it is to go through a maze of documents, find them, verify them etc and there has been some element of a lack of cooperation from some of the entities involved and that of course led to some delays in the finalization of the report but the report is substantially complete,” Harris said.

“The absence of control at the SIDF was so bad that it was difficult for them to be able to move with the speed that had been anticipated and you add that to the fact that the SIDF had not produced audited financial statements for a significant period of time, the last one perhaps would have been 2013 that they had provided audited reports. You add that to the fact that you had entities such as the Kittitian Hill Belmont Resort whose report would impact upon the financial statement statements of SIDF and their accounting was not up to date in terms of auditing, so it is those complexities that has led to a prolonged engagement with respect to Ernst & Young presenting its report to us,” Harris concluded.

The controversial management of the SIDF by the former Denzil Douglas-led administration came in for some unpleasant findings following a preliminary review in May by multinational firm Ernst & Young.

Speaking at a monthly press conference held in May 2015, Harris said that the review of the SIDF operations over the period 2010-2014, which he announced on March 15, had revealed some troubling initial findings.

“The review has revealed that the SIDF was operated in a manner unbecoming of a multi-million dollar entity. The board of councilors and senior management operated with scant regard for proper procedures and best practices expected of those with fiduciary responsibilities,” Harris said.

The SIDF was touted by former PM and now leader of the opposition, Dr Denzil Douglas, as a private foundation outside the ambit of government oversight. Under the Douglas administration the fund amassed hundreds of millions of dollars from the sale of St Kitts-Nevis citizenship for up to US$400,000 cash per citizenship.

The SIDF was founded in September 2006 by the National Bank Trust Company, which is a subsidiary of the St Kitts Nevis Anguilla National Bank, a public limited company with the majority shareholder being the federal government of St Kitts and Nevis.

Source: caribbeannewsnow.com
Posted: October 2016

Since taking up his post as the new CEO of the St Kitts and Nevis Citizenship by Investment Unit (CIU), Les Khan has been working hard to implement reforms that will define the citizenship by investment (CBI) program as innovative and an international leader once again.  He achieved this at a two-day CBI conference that took place last week in Dubai when he announced a step change in what the CBI program in St Kitts and Nevis has to offer. He advised delegates that the CIU will now be able to offer an accelerated application process where applicants will be fast tracked and approvals granted within 60 days.

The CIU under Khan’s leadership has been undergoing a number of reforms including the strengthening of its vetting process and the implementation of a technical committee. This therefore means that the same high standards of due diligence will apply to every new applicant but as a result of increasing the team and expanding on their expertise, applicants will now be able to be fast tracked at a premium.

“It was my ambition to improve the service delivery and performance of the Citizenship by Investment Unit and I am grateful to the cabinet of the Prime Minister Dr Timothy Harris for sharing this vision, for having confidence in the unit and for having a commitment to deliver a platinum service,” Khan said.

He added that, with the improved processes and systems in place, St Kitts and Nevis is able to provide applicants with a fast track service, including the issue of passports, which previously had been subject to lengthy delays.

Khan noted that the clients in Dubai were eager to implement this new program and to this end he will be releasing guidance on the implementation of the initiative shortly.

Source: caribbeannewsnow.com
Posted: October 2016

To access the data sheet on the Portugal’s Golden Residence Programme (GRP) results as of the 30^th September 2016, please click here

Launched in October 2014, the Investment Migration Council (IMC) is the only global association for professionals involved in investor migration and citizenship-by-investment. The IMC has been growing rapidly under the leadership of its Chief Executive, Bruno L’ecuyer.  It has recently reported that its membership has grown to nearly 300, with members from over 30 countries in Europe, Asia Pacific, Australasia, Middle East, Africa, Caribbean, and North America.

The IMC’s main objective is not to only to respond to industry needs, but to lead the investor migration sector by setting industry standards worldwide. In the last twelve months alone the organization has launched the industry’s Code of Ethics and Professional Conduct policy, aimed at improving standards, transparency and elevating client confidence in a rapidly growing market. It also successfully organized the first Investment Migration Forum — Dubbed the ‘Davos’ of the Citizenship-by-Investment industry meeting, which has governments, leading business professionals and academics meet in Geneva for three days of policy discussions. The organization further aims to help improve public understanding of the issues faced by clients and governments in this area.

IMC Chairman, Professor Dr. Dimitry Kochenov, commented: “We are absolutely delighted at having reached this important milestone. It is no surprise that industry professionals have, and continues to see the tangible advantages of belonging to the IMC.’’ Members benefit from the professional development, networking opportunities and information services provided by the association. The IMC also enables members to increase their business’ reach and enhance their brand position by informing them about the most up-to-date-industry trends.

Austin Fragomen, founding partner of the world’s largest immigration law firm, said, “An important role of the IMC is to bring together what is essentially a global community. The IMC has managed in a very short space of time to forge strong foundations that bridge the gap between governments, academics and professionals in this fast-growing industry.’’  Christopher Curmi, Director of Deloitte, added: “The IMC is first and foremost the association for leading professionals and companies in the field, but also plays a crucial role with governments and regulators, leading academic debate and research. No doubt the IMC will continue its success in uniting the industry and establishing the highest standards.”

Pafilia Cyprus Property Developers has been fined €100,000 for mis-leading home buyers in a case that focused on the commercial practices that the company used in 2007 when selling apartments to them.

The complaint was filed with (CCPS) by home buyers in December 2013. The case focused on the commercial practices which Pafilia Cyprus Property Developers had used back in 2007 in selling flats to them. The buyers who purchased apartments from the company accused the seller of hiding important information, such as the fact that there were mortgages on the properties already.

This meant that the buyers could not actually get a hold of their Title Deeds until the developer could pay off debts.

In other words, they were not the official owners of the properties they had bought with their own money. But in their home countries, they said, as soon as someone pays for a property in total, they get the Title Deeds regardless of any outstanding balances owed by the developer. They also accused Pafilia of supplying them with misleading promotional material, said to have included information mentioning that law in Cyprus was based on Anglo-Saxon law.

The company maintains that the buyers were fully informed, citing Pafilia’s own loan for the property which came from the same bank as that of their clients.

The developer also said they had a lawyer go over the details with the buyers, explaining the situation in Cyprus which was different from that depicted in the pamphlets.

Pafilia also says buyers are not impacted in any negative way by not having their own separate Title Deeds, saying that reselling the property is still possible under their current registration with the Land Registry.

The company had been cooperative during the investigation of the complaint, according to the CCPS.

Source: news.cyprus-property-buyers.com
Date: 27 September 2016

On September 26^th, EB5 Economist, an economic research firm specializing in analyzing the economic impact of EB5 projects, launched a newly developed, proprietary EB-5 Job Calculator. This calculator is a tool to help EB-5 project developers and professionals quickly estimate the number of EB-5 eligible jobs their project creates. The tool utilizes RIMS II data and works with projects across all 50 states.

The tool has had an amazing launch, and within 2 days following the launch, EB5 Economist reported there have been hundreds of active users who analyzed over 1,500 projects to date. “We’re thrilled with the response we’ve seen for the job calculator so far,” said Founder and Managing Partner Erin Osborne. “We developed this tool as an alternative to a developer purchasing a preliminary report, which has historically been expensive and takes days to complete. Our goal was to develop a tool that was useful to EB-5 professionals and their clients that could help both make more informed EB-5 investment decisions and I think we’ve succeeded in that pursuit.”

The free calculator, runs a preliminary EB-5 job creation analysis based on user-defined inputs such as hard construction expenditures, soft costs, and revenue from ongoing operations. The job calculator output shows total jobs created by a project, job creation by expenditure / revenue category, and maximum EB-5 capital raise for Targeted Employment Area (TEA) and non-TEA locations.

While the tool itself is relatively straightforward and easy to use, the EB5 Economist team has also created a demo video with step-by-step instructions as well. The calculator is designed to be a back-of-the-envelope tool which provides directional guidance for developers. A full economic impact study is required for EB-5 projects and this calculator provides initial guidance and immediate feedback to developers and project sponsors on the potential EB-5 viability of a project.

The Free EB-5 Job Calculator can be found here. More information about EB5 Economist can be found on their website which you can access using this link.

Source: EB5 Economist Consulting, LLC.

To access the data sheet on the Portugal’s Golden Residence Programme (GRP) results as of the 31^st August 2016, please click here

As the EB-5 visa backlog for natives of China continues to increase, parents looking to use the EB-5 program to obtain U.S. permanent residence for their children are faced with the prospect of their children reaching the age of 21 prior to an EB-5 visa becoming available to them and their families. As a result, many are considering gifting the investment funds to their child, and letting the child be the EB-5 investor and Petitioner. We have been asked by clients and others if and how this can be accomplished. We provide a brief explanation below. For more detailed information, be on the lookout for the upcoming article on the topic co-authored by Klasko Partner Daniel B. Lundy and and Catherine DeBono Holmes of Jeffer Mangels Butler & Mitchell LLP.

First, it is important to note that USCIS does not have an established policy regarding the approval of minors as EB-5 investors. While there presently is no specific prohibition, USCIS policy could change at some point in the future to disallow minor investors. As a result, we advise proceeding with caution, and limiting the number of minor investors in any given project.

USCIS stated at a recent stakeholder meeting that there is nothing prohibiting a minor from being an EB-5 investor and petitioner, however, the investor must prove by a preponderance of the evidence that the investment contract is valid and not voidable. In the U.S. contracts entered into by minors are typically void or voidable by the child when he or she becomes an adult. However, under the Uniform Transfers to Minors Act, or UTMA (also known as the Uniform Gifts to Minors Act), a parent or guardian, acting on behalf of a minor child, can enter into a contract on behalf of that child, and that contract is not voidable. In order for such a sale to occur, the subscription agreement and operating agreement need to contain the following language on the signature page:

______________________ (NAME OF PARENT OR GUARDIAN) as custodian for ______________________ (NAME OF MINOR INVESTOR) under the Uniform Transfers to Minors Act

______________________
Printed Name of Parent or Legal Guardian

______________________
Signature of Parent or Legal Guardian

There are a few important points to remember. First, the parent(s) must gift the investment funds to the child. The child must receive the funds into an account of the child’s, or a joint account of the child’s and parent’s. Second, the parent at no point in time owns the limited partnership or limited liability company interest in the EB-5 investment company. Ownership vests directly in the name of the child. Third, although the parents are responsible for managing the asset until the child turns 18 (or 21 in some states), upon reaching this age, control automatically vests with the child.

The purchase of an interest in the EB-5 company under the UTMA on behalf of a child results in a non-voidable investment contract, which should satisfy the current EB-5 requirements as interpreted by USCIS. Children under 14 may not be able to sign USCIS forms on their own behalf, and we generally recommend against accepting investors under 14. Even though there is no age limit set by law, regulation, or USCIS policy, our preference is to limit such transactions to cases where the child is 16 or 17 years old. 15 and 14 are not prohibited, but may, either now or in the future, meet with more resistance from USCIS, or potential negative publicity or political scrutiny. Keep in mind also that many of the banks holding EB-5 escrow accounts either will not accept deposits from minors, or do not have a policy on accepting such deposits, meaning that minor investors may have to waive escrow in order to make an investment. Because the trend of minor investors is a new development in the EB-5 industry, we expect that the landscape will continue to evolve.

This topic will be discussed in detail at our September 9 EB-5 seminar in Philadelphia entitled “EB-5 at a Crossroads.”

Source: Klasko Immigration Law Partners, LLP
Posted: August 2016