Broadway Intelligence Ltd – Global Investigations & Risk Analysis » Citizenship for sale? Don't do it your excellency!

When Saint Vincent and the Grenadines elected the New Democratic Party [NDP] in a landslide in November 2025, voters signaled a strong appetite for change. Former Prime Minister Ralph Gonsalves – who had been in office for 24 years – is now the sole representative of his United Labour Party [ULP] in the 23-seat House of Assembly, the country's unicameral legislatur.

The new Prime Minister – Dr. Godwin Friday – inherits a huge mandate but also a dire fiscal situation. Public debt is USD3.1bn in a country whose population is around 112,000. It is estimated that 36 cents of every government dollar is currently used to service debt.

According to Friday, the country has essentially reached its borrowing limit. This has led him to pursue a citizenship‑by‑investment [CBI] programme as a new revenue stream. The promise of quick capital inflows, job creation and infrastructure funding is seductive, particularly for a small island state facing climate vulnerability and limited economic diversification. Yet evidence from around the world suggests that selling citizenship is fraught with risks that far outweigh its immediate financial appeal. I strongly believe the incoming government's plan to introduce a CBI scheme is a terrible mistake whose reputational costs will outweigh any economic benefits.

Citizenship‑by‑investment programmes, sometimes marketed as "golden passports", grant nationality to wealthy foreign investors in exchange for a financial contribution. While such programmes can increase short‑term revenues, they have become a magnet for criminals seeking to launder money, hide assets or evade justice. In 2023, the Financial Action Task Force [FATF] and Organisation for Economic Co‑operation and Development [OECD] released a joint study warning that these programmes ". . . are attractive to criminals and corrupt officials seeking to evade justice and launder the proceeds of crime".

The report emphasised that CBI schemes offer illicit actors increased mobility and access to multiple banking systems, enabling them to hide their identity. The authors called for "multi‑layered due diligence" and stronger oversight, yet acknowledged that even properly managed programmes "bring significant risks of money laundering, fraud, and other forms of misuse.

US and EU sanctions

The global crackdown on CBI programmes is no longer a theoretical risk. In December 2025 the Trump administration imposed travel restrictions on citizens of Antigua and Barbuda and Dominica because of their golden‑passport programmes. U.S. officials cited national security and concerns about inadequate vetting. Caribbean leaders protested, but the restrictions demonstrated that Washington is prepared to penalise countries that continue to sell citizenship despite promised reforms. An article in "Caribbean Life" notes that US officials justified the suspension of visa access partly because they doubted local systems’ ability to properly scrutinise applicants from China, Eastern Europe, Russia, Nigeria and parts of Asia. The same report highlights that the new SVG government intends to proceed with its own CBI scheme even though U.S. visa suspensions could be expanded to additional countries.

Europe is also tightening its stance. The European Commission has warned that the mere existence of CBI programmes could be grounds to suspend visa‑free travel to the Schengen Area. EU officials view CBI schemes as a potential security risk because they allow individuals to circumvent normal immigration controls. Losing visa‑free access would be a serious blow for Vincentian citizens, who currently enjoy travel privileges in the EU. The possibility of U.S. or EU sanctions therefore threatens to erode the very passport value that the Vincentian government plans to sell.

Lessons from other CBI programmes

Research shows that while CBI revenues can be significant, they often engender dangerous dependence and corruption scandals. The Migration Policy Institute reports that from 2012 to 2021, revenues from St Kitts and Nevis’s and Dominica’s CBI programmes accounted for up to 30 percent of GDP. This dependence makes national budgets vulnerable to external policy changes and investor sentiment. More worrying are the governance problems. The same report notes that CBI programmes have repeatedly been associated with corruption of public officials, scandals, money laundering and even tampering with elections.

In Dominica, protests erupted in 2017 when opposition groups accused the government of corruption linked to CBI beneficiaries from Iran and China. In Malta, the assassination of investigative journalist Daphne Caruana Galizia was linked to officials involved in the programme. These scandals show that the risks are not merely hypothetical; they can have deadly consequences and can lead to international legal action and reputational damage.

Why Saint Vincent and the Grenadines Is vulnerable

Prime Minister Friday argues that a CBI programme is necessary because SVG "can’t borrow much more" and must find alternative revenue sources. He cites the $3.1 billion debt and heavy debt‑service burden. This fiscal desperation is understandable, but it is precisely the condition that can lead countries to accept high‑risk schemes. History shows that overdependence on CBI revenues can produce a fiscal cliff. Once other governments or international organisations restrict or discourage the sale of passports, the revenue stream can dry up overnight, leaving a hole in the budget and little to show for it. The IMF has warned about such overdependence, noting that Vanuatu’s CBI revenues accounted for 42 percent of its national budget in 2020, raising questions about sustainability.

Diplomatic and reputational costs

SVG’s decision to launch a CBI programme comes at a time when major powers are moving in the opposite direction. US visa suspensions on Antigua and Dominica demonstrate that compliance with due‑diligence rules is no guarantee of immunity; Washington can impose sanctions even in the absence of documented abuse. The European Commission’s threat to suspend Schengen visa‑free access for countries with CBI programmes indicates a willingness to punish all participating states collectively. By becoming the sixth Caribbean CBI jurisdiction, SVG would join a club under international suspicion rather than forging a unique development path. The reputational cost could spill over into tourism, banking and foreign investment, particularly if the programme becomes associated with scandals.

Limited capacity for due diligence and governance

SVG’s new government promises rigorous screening and multi‑institutional oversight. However, even larger countries with more developed financial systems have struggled to prevent abuse. The FATF‑OECD report notes that the vulnerabilities in CBI programmes stem not only from applicants but also from professional intermediaries and the involvement of multiple government agencies, making it hard to ensure accountability. The Council on Foreign Relations warns that critics see these schemes as conduits for corruption, tax evasion and organised crime. SVG’s small size and limited institutional capacity will make it difficult to implement the multi‑layered due diligence required to mitigate these risks.

Inequality and social resentment

CBI programmes are marketed as opportunities to fund public services, but evidence suggests that they can exacerbate inequality in issuing countries. Wealthy foreigners are granted privileges and mobility while ordinary citizens may see little benefit. The Council on Foreign Relations notes that enticing wealthy foreigners often inflates local real‑estate prices, as happened in Spain. In small island states, a surge in property demand from foreign investors can price locals out of the market, worsening social inequality and fuelling resentment.

Sovereignty and identity

Citizenship is more than a transactional commodity; it is a symbol of political community and belonging. Selling passports undermines the meaning of citizenship and may alienate citizens who perceive that nationality is being commodified. The European Parliament briefing argues that CBI schemes erode fairness and sincere cooperation and commodify EU citizenship. For a nation like SVG, which endured colonialism and fought for self‑determination, reducing citizenship to a revenue tool could be seen as a betrayal of national identity.

Opportunity cost

By focusing political and administrative energy on establishing a CBI programme, the government may neglect longer‑term strategies for sustainable development. Instead of selling passports, resources could be deployed to attract productive foreign direct investment, develop renewable energy, modernise agriculture, expand digital industries or tap into climate‑finance mechanisms. The time and money spent designing a complex due‑diligence infrastructure might be better invested in improving education, health care and infrastructure, which would yield more inclusive growth. Additionally, the negative international reaction to CBI programmes may deter responsible investors who value stability and good governance.

Conclusion

The New Democratic Party's plan to introduce a citizenship‑by‑investment programme in Saint Vincent and the Grenadines is not a visionary solution to the country’s debt crisis but a risky gamble. The global environment for golden‑passport schemes is deteriorating. The FATF and OECD warn that such programmes attract criminals and facilitate money laundering. The Council on Foreign Relations notes that they can fuel corruption and inequality. The European Commission threatens to suspend visa‑free access for countries offering CBI, and the United States has already imposed travel bans on Caribbean CBI states. Meanwhile, the Migration Policy Institute illustrates how CBI dependence breeds corruption scandals and undermines governance.

SVG's severe fiscal challenges and public‑debt burden are real and pressing, but selling citizenship is not the answer. The short‑term gains are likely to be offset by long‑term reputational damage, loss of visa privileges, increased inequality and the risk of becoming a haven for illicit activity. At a time when the international community is cracking down on these schemes, SVG should instead pursue sustainable economic strategies that strengthen institutions and create broad‑based prosperity. Citizenship is not a commodity; treating it as such will only compromise the nation’s sovereignty and future.

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Citizenship for sale? Don't do it your excellency!