The International Monetary Fund has released a ECCU report on Feb 22, 2019, and in the report IMF said there are lower inflows in the citizenship by investment schemes and stressed the importance of strengthening the governance of CIP in the Eastern Caribbean Currency Union.
IMF said in its report..
The Eastern Caribbean Currency Union (ECCU) is gradually recovering following the catastrophic impact of Hurricanes Irma and Maria in 2017. Tourism is slowly picking up in hurricane-stricken countries and has remained strong elsewhere in the ECCU. Conditions remain favorable to growth, but risks are increasing.
The fiscal position has deteriorated, reflecting lower inflows from citizenship-by-investment programs and larger reconstruction and current spending, and the ECCU debt target of 60 percent of GDP by 2030 remains elusive for most countries.
Directors also underscored the need to reduce risks of further withdrawals of correspondent banking relationships, de-risking of downstream financial institutions by banks, and exit of foreign banks. They stressed that ensuring compliance with AML/CFT standards will be crucial in this regard. Directors also called for expeditiously finalizing harmonized legislation for the non-bank financial sector including credit unions, and an effective consolidation of regional financial sector oversight.
Continuing to strengthen the governance of Citizenship-By-Investment programs will also be important.
In a Statement by Louise Levonian, Executive Director, Anne Marie McKiernan, Alternate Executive Director, and Mike Sylvester, Advisor January 28, 2019 published in the report
“Our authorities will continue to strengthen the governance of their Citizenship-By- Investment(CBI) programs. Maintenance of credibility and integrity of these programs is a priority for the region. There is increased collaboration, information sharing, vetting of candidates, and harmonization of due diligence process among our authorities. The due diligence process is a layered approach involving both regional and international institutions.”
About ECCU
The Eastern Caribbean Currency Union (ECCU) is a development of the Organization of Eastern Caribbean States. This organization is composed of Antigua and Barbuda, Dominica, Grenada, St. Kitts and Nevis, St. Lucia, and St. Vincent and the Grenadines. It is under the supervision of the Eastern Caribbean Central Bank. The member countries use a common currency, the East Caribbean dollar, which is pegged at EC$2.70 to US$1
The full IMF report is available here
