Les Khan, CEO of SKN’s Citizenship by Investment Unit, breaks down how he crafted a new, ‘Citizenship 2.0’ model to transform the world’s oldest CBI programme into a global leader in economic citizenship.
Les Khan answers important questions on the flagship CBI scheme.
Running the CIU must involve enormous coordination of the efforts of various teams. What’s a day like in the world’s flagship CBI centre?
It’s really about relationship building and our ability to identify and cultivate connections that can only develop and improve our programme. The CIU regularly engages with service providers, agents, real estate developers and international marketing agents no matter the jurisdiction or time zone, to advise on issues, come to practical solutions, and learn and benefit from all that these relationships have to offer. The CIU works from beginning to end to ensure the intake of applications are expertly validated, even before any application can be processed. Follow-up with our due diligence providers is consistent, making the flow of information steady and continuous, even down to the distribution of our Certificates of Registration (COR). In the past, CORs were being issued with many mistakes, and jurisdictional naming conventions were being ignored or misinterpreted. Now our team works closely with service providers and due diligence agencies to confirm that accurate details are always reflected and CORs are being issued without unnecessary delays. The key factors in our programme are efficiency, quality, sound decision making, uncompromised due diligence, and communication.
There is a real buzz in global markets about SKN’s CBI’s ‘Platinum Standard’. How has this repositioned the CBI brand and its approach to global citizenship?
With the St. Kitts and Nevis’ recently rebranded Citizenship by Investment Programme to a Platinum Standard, the full attention of the global investment world is again drawn to the inevitable demand for an intensification in the overall standard of internation- al citizenship programmes.
According to CS Global Partners, the Financial Times’ Professional Wealth Management (PWM) CBI Index, in its June 2017 publication, ranked St. Kitts and Nev- is as one of the two best Citizenship by Investment Programmes in the world.
The programme has regained international credibility and boasts the strongest and most stringent due diligence process in assessing potential citizens for approval. Our programme now offers more efficient processing of applications in a significantly shorter time frame. Furthermore, we have successfully offered an Accelerated Application Processing service while still maintaining our strict compliance with the best due diligence practices.
In 2016, the CIU unveiled ‘Citizenship 2.0’. What are the key changes that this has introduced?
We introduced a management team comprised of expertly trained and knowledgeable individuals
that assess each case for their levels of risk, ensuring transparency and accountability. The CIU’s opera- tional model has been overhauled and streamlined and our most significant change since the launch of CBI 2.0 is the integration of the industry’s first work- flow system. 100% of our service providers use The Citizenship Application Management System (CAMS) to submit and process applications through the CIU which has enabled us to turnaround applications faster and more efficiently. To keep our volume in check, we have increased the amount of due dili- gence providers we work with and we have added checks and counter checks to our vetting process. Our new interactive website includes a Citizenship Calculator that makes understanding the estimated costs of a second citizenship hassle free.
How does the CIU balance the need for robust verification and due diligence, with its award-winning service and efficiency?
The CIU has extensive documentation requirements; each one is necessary to understand the individual applying for citizenship. Our verification team has at their fingertips, comprehensive document libraries and information based referencing systems. They are unlike any other team when it comes to responding to questions that may be cultural and geographical in nature. This helps our service providers understand the applicants and what they need.
Our due diligence process is never compromised and we work with our due diligence providers to ensure we receive a complete picture of potential citizens. Our decisions are as good as the background checks we receive, and through the implementation of test- ed risk mitigation strategies, we turnaround sound solutions efficiently without compromising service.
What are the latest trends in wealth and investment management, and how does the SKN CBI Programme cater to them?
The latest trends suggest that clients would like to have an equity stake in their investment. In other words, they would like a reasonable rate of return on their investments. Because of the inventory and quality of the real estate projects, the St. Kitts and Nevis CBI Programme is best suited for these clients. Alternative investment options are also proving to be attractive for clients wanting to invest in the Federation.
What advantages come with SKN having the oldest and longest-running CBI programme in the world?
Being the longest running programme in the world, there are many advantages. The first is that we have made all of the mistakes and have learnt from them. We were able to recalibrate our programme and establish ourselves as the Platinum Standard Brand because people know who we are. With over 10,000 economic citizens, word of mouth has continued to feed our programme with new applications. Agents are also more familiar with our product and are aware of the stability we have in our programme.
The SKN CBI Programme has been able to distinguish itself from other programmes around the world. What would you say are the top 5 features that set the SKN CBI Programme apart from the others?
1. Most branded hotels – SKN boasts approximately 7 top branded hotels, with significant interest from new property development companies.
2. Residency programme – St. Kitts and Nevis boasts a very unique residency programme that is gar- nering interest internationally. Applicants need to qualify for residency by spending 2 non-consecutive months on island. In return, applicants will receive a tax ID card and a residency card.
3. Value of passport – The Nomad Passport Index of 2017 confirms what we have been working towards. SKN has the number 1 and number 2 passport in the OECS and CARICOM respectively, and positions SKN as having the number 7 passport in the Americas. A holder of a SKN passport has visa-free or visa upon arrival access to over 150 countries.
4. Efficiency – We take pride in our efficiency by processing applications within our 90 day time-frame or sooner. Our programme has been recognised for its productivity and turnaround times and as a result, in late 2016, we decided to implement the Accelerated Application Process. Instead of processing applications in the industry standard of 90 days, the CIU guarantees 45-60 days.
5. Due diligence – Our due diligence and vetting process makes our programme one of the best in the world. We look at a number of variables, including whether an applicant is from a high-risk country, for example, or a country that has been described as a state sponsor of terrorism. We assess where appli- cants amassed their wealth and determine if it was derived from trustworthy and legal means. It’s an involved process but very necessary when making the right decisions.
You’ve been CEO at the CIU for about 1 year. What has been the most significant achievement in your time?
To date, the most significant achievement has been the processing of applications in the most efficient manner without compromising our due diligence and vetting processes. We have also been able to build solid relationships with our clientele who include service providers, developers, agents, and the clients themselves. It is rewarding to know that other CBI programmes are trying to achieve the level of recognition that we have.
How have CBI contributions to the Sugar Industry Diversification Foundation (SIDF) helped to shape National Development in SKN?
The most significant area that has benefitted from CBI contibution to the SIDF would be the servicing of our national debt. In 2017, the IMF commended SKN for noteworthy improvements made in the reduction of its national debt and further applauded the government for the efforts made to reform and strengthen its CBI programme. The rep- resentatives from the IMF further acknowl- edged Cabinet’s consideration beyond just the real estate investment option. Through the SIDF investment, alternative energy, entertainment, entrepreneurship, and in- frastructure have gone a long way in aiding in National Development. Initiatives such as the Skills Training Empowerment Program (STEP) and the Fund for the Realisation of Economic Empowerment through Sub- sidised Housing (FREESH) Mortgage pro- gramme have invested over EC$8,000,000 to help nationals of SKN.
SKN boasts a range of exciting opportunities to invest in real estate. How would you describe the property market in SKN?
In the past 12 to 14 months, SKN has seen an increase in demand of branded hotel chains. Galaxy Property Development, most commonly known as Heldon’s Hotel and Residences is now a Ramada branded hotel; and T-Loft Property Development, Pirate’s Nest has acquired the brand-name Radisson. We are happy to also announce that Wyndham Resorts will, in the near future, establish a hotel in our Federation. We at the CIU know that the stimulation and excitement that surrounds real estate investment in SKN stems from the significant changes and international recognition the country has received for the improvement of our CBI Programme.
Les Khan is CEO of the St. Kitts and Nevis Citizenship by Investment Unit.
Originally from Trinidad, he studied in Australia and the US and is a certified Project Management Professional. With over 20 years’ experience within large financial and risk management organisations, Mr. Khan was appointed to revamp the Citizenship by Investment Unit in St. Kitts and Nevis. Under his stewardship, St. Kitts & Nevis was named World’s Most Innovative Investment Immigration Programme at The Russian Global Citizen Awards in 2017.
Source/Credit: This article was republished from the The Citizen Magazine
