A few weeks ago, my colleague Jeanne Labbe, Chief Communications Officer at TIMC, had the privilege of meeting with Mr. Thomas Anthony, Project Development Officer and acting CEO of the Antigua & Barbuda Citizenship by Investment Unit.
The main objective of their meeting was to assure TIMC’s investors that the Antigua & Barbuda Citizenship by Investment Program is safe and sustainable.
Mr. Anthony not only reassured Mrs. Labbe of the integrity of the Program, but also helped us understand the Program in depth.
Mrs. Labbe believes TIMC’s readers will benefit greatly from the information provided in this interview.
INTERVIEW:
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Thomas Anthony
Project Development Officer
and acting CEO, Antigua and Barbuda
Citizenship by Investment Unit
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Jeanne Labbé
Chief
Communications Officer,
TIMC
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Jeanne Labbé, TIMC:
Mr. Anthony, tell us a little bit more about your background.
Thomas Anthony, CIU:
I was born and raised in Antigua. After high school, I worked for five years at the Swiss American International Bank Ltd. first as a teller, then in various other positions including junior loans officer.
I then decided to pursue my formal education in Banking and Finance in London, England.
After my studies, I returned to Antigua in 1995 and worked in Commercial banking for five years at the Antigua Barbuda Investment Bank Ltd. In 1999, I received my Series 7 certification as an Investment Banker. Over the next three years, there were three further licenses added to my qualifications in the United States and two in the Caribbean.
I then moved to Miami to establish a brokerage firm in Coral Gables, Florida. This allowed me to return to Antigua two years later to manage the Wealth division of an offshore banking group for seven years.
In 2013, I accepted the position of Project Development Officer with the Citizenship by Investment Unit. My responsibilities included creating the policies and guidelines for the real-estate and business investment options and promoting the Program at international forums.
Since January 2016, I have been performing the role of the Unit’s acting CEO.
Jeanne Labbé, TIMC:
When was the Citizenship by Investment Program launched?
Thomas Anthony, CIU:
The Antigua and Barbuda CIP Act was passed in April, 2013. The CIU, a creature of the legislation, was staffed on August 26, 2013 and opened to the public on October 10, 2013. The first application was received in November 2013. The first citizenship was granted in February of 2014.
Jeanne Labbé, TIMC:
What are the requirements to qualify for the Program?
Thomas Anthony, CIU:
With the exception of applicants from countries on the “Restricted Country” list, anyone 18 years and older who commits to making an investment under one of three options can participate in the Antigua and Barbuda CIP. The options are ;
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Contribution to a National Development Fund (NDF),
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Purchase of Real Estate in an approved project, or
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Investment in an approved business.
Having done this, an applicant may apply along with his/her dependents for Antigua and Barbuda citizenship.
In addition, an application for citizenship must be done through a Locally Licensed agent and is subject to processing and due diligence fees, depending on the age of the dependents.
Jeanne Labbé, TIMC:
How many investors have applied since its inception?
Thomas Anthony, CIU:
In December 2015, over 800 citizenships have been granted.
Jeanne Labbé, TIMC:
Which parts of the world do your investors mainly come from?
Thomas Anthony, CIU:
About 40% of our applicants are from China, and 20% from the Middle-East.
The other 40% is divided among other countries in the world.
Jeanne Labbé, TIMC:
What is the primary purpose of this program for the country?
Thomas Anthony, CIU:
The main focus of this program is to revive the country’s economy. Tourism, the main driver of our economy, suffered a setback after the global economic crisis in 2008 caused a decrease in visitor arrivals. Citizens in our source markets were obviously experiencing a reduction in their disposable income and so were travelling less frequently. The government therefore had to consider different options to jumpstart the economy. The CIP was seen as the most effective way to generate renewed interest in the Real Estate market and spur investment in the general economy.
Jeanne Labbé, TIMC:
What has the Citizen by Investment Program done for the economy of Antigua and Barbuda?
Thomas Anthony, CIU:
Over 800 applications have been processed to date, resulting in more than 1,000 citizenships being granted, and more than US$100 million flowing into the economy.
We have, in a little over two years, seen a resurgence in the island’s real-estate sector.
This economic boost has, for example, allowed for environmentally responsible projects such as solar energy and reverse osmosis to be developed. The local populace has also been benefiting from direct investments being made to the Social Security scheme and community housing projects.
These projects made possible through the CIP create employment and it is expected that the economic security of normal Antiguans and Barbudans will improve.
Jeanne Labbé, TIMC:
What makes the Antigua & Barbuda program stand out from other Caribbean island programs?
Thomas Anthony, CIU:
Reputable industry partners rate Antigua as the premier program in the Caribbean. This is primarily because of the robust due diligence process, efficiency and professionalism of the Unit and government policy. Additionally, Antigua and Barbuda is the only country in the region with a program with visa free access to Canada.
Jeanne Labbé, TIMC:
Can you share with us some success stories of the program so far?
Thomas Anthony, CIU:
One excellent success story is the partnership between PV Energy Ltd. and the Government of Antigua and Barbuda.
As climate change is a global concern and many countries are taking the initiative towards low-carbon and climate resilient development, the Government of Antigua and Barbuda is taking steps towards mitigating the effects of climate change.
The ultimate vision of the Hon. Prime Minister, Gaston Browne, is to create a more sustainable environment. In that regard, PV Energy was able to successfully complete the first 3MWp sun2live installation of the 10 MWp solar voltaic energy project. This will result in long-term economic, environmental and social benefits.
Jeanne Labbé, TIMC:
Can you take us through the process (the timeline of applications), from start to finish:
Thomas Anthony, CIU:
The average processing time from start to finish is 60 days for non-problematic files.
Once a file is presented to our office, the documents are reviewed for accuracy and verification of expiration dates. A receipt is then issued and the processing begins. We receive reports from our local and regional law enforcement agencies, international partners and due diligence providers within 30 to 45 days, and are able to make an informed decision within seven business days. In the case of a problematic file, the process is delayed until we receive all pertinent information. For approved files, the investor has 30 days in which to complete the transaction, after which citizenship is granted.
Jeanne Labbé, TIMC:
Why is Due Diligence process so important?
Thomas Anthony, CIU:
Given the increasing global security concerns, money laundering, terrorism and global conflicts, we need to ensure the safety of our borders and those of the international community, particularly our visa free partners. We have a legal and moral obligation to ensure that only fit and proper persons become holders of an Antigua and Barbuda passport.
Jeanne Labbé, TIMC:
What are the financial risks to applicants of this program?
Thomas Anthony, CIU:
There is a 10% non-refundable deposit of the processing fees on all applications. There is no risk as it relates to the National Development Fund (NDF) contribution, given that it is only payable on approval of the file. When choosing the business investment and real estate options, some reservation deposits are non-refundable, depending on the properties.
The Unit mitigates the investment risk by ensuring that withdrawals from the escrow account can only be done on the written authorization of the CIU. If, for example a development does not see the light of day, the CIU can transfer an investor to the NDF or have them choose another property.
Jeanne Labbé, TIMC:
Will your government be ready to make difficult decisions like revoking someone’s citizenship?
Thomas Anthony, CIU:
Yes, for serious founded reasons, such as treason, sedition, or acts of terrorism or association with terrorist organizations. To date, we have discovered one person out of approximately 800 applicants, who excluded materially important information. That person’s citizenship was subsequently revoked.
Jeanne Labbé, TIMC:
How would you describe a perfect candidate for this program?
Thomas Anthony, CIU:
A perfect candidate is an investor who has a clean criminal and civil record, is accepting of multicultural societies, willing to visit and integrate in our country, has an entrepreneurial spirit and the necessary funds to invest in Antigua & Barbuda’s economy.
Jeanne Labbé, TIMC:
What are the reasons for refusing an applicant?
Thomas Anthony, CIU:
An applicant will be refused for the following reasons:
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Providing false information on his or her application form
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Not having received a free pardon, has at any time previously bee4n convicted in any country of an offense for which the maximum custodial penalty is in excess of six months imprisonment
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Is the subject of a criminal investigation
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Is a potential national security risk to Antigua and Barbuda or any other country
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Is involved in any activity likely to cause disrepute to Antigua and Barbuda
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Has been denied a visa to a country with which Antigua and Barbuda has visa-free travel and who has not subsequently obtained a visa to the country issued the denial
Jeanne Labbé, TIMC:
What would be your message to new applicants to the CIP?
Thomas Anthony, CIU:
It is important that applicants declare all pertinent information and provide all required documentation from the onset. This will accelerate the process and lead to the granting of citizenship in a shorter time period.
Jeanne Labbé, TIMC:
What do you hope Antiguans and Barbudans will say about the CIP Program ten years from now?
Thomas Anthony, CIU:
That we have been successful in redeveloping infrastructural developments, industry diversification and growing the general economy of Antigua & Barbuda, while successfully integrating our new citizens into our culture.
Jeanne Labbé, TIMC:
Mr. Anthony, I would like to thank you on behalf of our readers for your insights on the Citizenship by Investment Program.
Thomas Anthony, CIU:
Thank you for affording the Unit the opportunity of promoting our program. Our aim going forward will be to strengthen our due diligence process, create new revenue streams and focus on the sustainability of the program, while we work on achieving our goal of 50 applications a month for 2016.
