Payout Schedule Under Escrow Bill To Ensure Completion Of CBI-related Developments In St. Kitts And Nevis
BASSETERRE, St. Kitts, November 26, 2020 (Press Unit in the Office of the Prime Minister) – During the Tuesday, November 24 edition of the Leadership Matters virtual series, Chief Executive Officer (CEO) of the Citizenship by Investment Unit (CIU), Mr. Les Khan, said the Government of St. Kitts and Nevis continues to implement the necessary measures geared towards improving the brand of the country’s Citizenship by Investment (CBI) Programme and protecting the clients who invest in the country.
One such measure has been the passage of the St. Kitts and Nevis Citizenship (CBI Escrow Accounts) Bill in November, 2017. This piece of legislation provides the guidelines relating to escrow accounts and agreements under the Federation’s citizenship programme.
Mr. Khan stated that, “The Escrow Bill was established to ensure that funds are placed into escrow if a title for property was not available. St. Kitts and Nevis is the only country in the OECS that has drafted and gazetted an Escrow Bill. This legislation continues to be improved, and by the end of the year we will be implementing a payout schedule that all developers must adhere to.”
An escrow account is a bank account opened with an escrow agent in the escrow agent’s name for the benefit of the parties to a principal agreement such as a real estate purchase contract. The escrow agent oversees the management of an escrow account subject to certain conditions based on the principal agreement and the escrow agreement. The escrow agent – who is a neutral third party – temporarily holds the purchase money and supervises the payments (the timing and amounts of disbursements).
Mr. Khan further indicated that the final stages of the St. Kitts and Nevis Citizenship (CBI Escrow Accounts) Bill, which is currently being drafted into regulation, will provide for a payout schedule for funds placed in escrow.
“The schedule is based on completion of certain stages of development and will ensure completion of projects. With this schedule, the Government is ensuring that construction continues, jobs are created, and an overall direct contribution to the economy is achieved,” CEO Khan said.
Through this significant piece of legislation, Mr. Khan said the Government of St. Kitts and Nevis is again solidifying its position as a leader in the economic citizenship industry.