Skip to main content

US: St. Kitts citizenship program is being abused

By WTOP Staff

CLIVE BACCHUS & DAVID McFADDEN
Associated Press

BASSETERRE, St. Kitts (AP) — The U.S. Treasury has alerted financial institutions that some people are abusing a citizenship-by-investment program in St. Kitts & Nevis, which has become increasingly reliant on revenue from selling citizenship to foreigners.

The tiny Caribbean nation, less than twice the size of Washington D.C., offers foreigners a very fast path to citizenship in exchange for a minimum real estate investment of $400,000 or a $250,000 donation. It has long insisted its background checks are thorough and the program is well managed, although there has been little public accounting.

But the U.S. Financial Crimes Enforcement Network said in an advisory issued Tuesday that St. Kitts’ program “maintains lax controls as to who may be granted citizenship,” and as a result, “illicit actors, including individuals intending to use the secondary citizenship to evade sanctions, can obtain a SKN passport with relative ease.”

It also believes Iranian nationals are continuing to obtain passports through the islands even though St. Kitts announced last year that all Iranians were barred from getting local citizenship.

In a Thursday statement, Prime Minister Denzil Douglas said officials are determining “what changes, if any, should be made to the program.” He said he was “very pleased” that the U.S. had uncovered evidence that certain economic citizens were using their St. Kitts passports to facilitate unlawful financial transactions.

By midday, the islands’ Cabinet announced that all applications for St. Kitts’ economic citizenship program will be sent to “some of our closest allies in crime-fighting, including the FBI, Scotland Yard, the Royal Canadian Mounted Police and Interpol.”

The Cabinet also said an oversight commission will soon be created to monitor the program. It noted that the citizenship-by-investment program adopted a policy in July 2013 to bar all Iranian applicants, but it did not address the U.S. network’s belief that Iranians were still getting St. Kitts passports.

While ruling party officials tried to put a positive spin on the U.S. advisory, opposition officials portrayed it as a fiasco.

“What has now happened is indeed a sad blow for St. Kitts & Nevis because it means that our own citizens born right here will be under scrutiny,” said Shawn Richards, leader of opposition Peoples Action Movement.

“Investor visa” or citizenship programs are offered by many nations, including the U.S. and Britain. But St. Kitts and nearby Dominica have long offered a speedy path to citizenship at a very low cost. The whole process can take as little as 90 days in St. Kitts. And there’s no need to ever live here, or even visit.

Selling citizenship is a booming business in St. Kitts, which created is program in 1984. A Dubai-based company is currently building a 4-square mile (10-square-kilomter) community in St. Kitts where investors can buy property and citizenship at the same time.

___

David McFadden reported from Kingston, Jamaica.

___

David McFadden on Twitter: http://twitter/com/dmcfadd

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
Read Next Story

Related News

Frustration grows in Venezuela as earthquake death toll reaches 1,430

Israel and Lebanon sign framework agreement with US in ‘first step’ toward peace, Rubio says

Trump-endorsed populist poised to become Colombia’s next president as rival challenges vote