A CBI underselling scam involves illegal discounting, exploiting the real estate investment route for citizenship by investment especially in the Eastern Caribbean. The scam is promoted by corrupt developers and agents. The methodology of the scam works like this – the developer approved under CIP offers a buyback share in the real estate project, provides loan/financing on the $200,000 minimum required property investment. Citizenship investors only pay the cumulative interest rate on the loan (flat fee) plus government fees and agency fee. No investment takes place.
Example
We will demonstrate an example
$200,000 Property investment (buyback share) financed at 4% for 5 years for single applicant
- Borrowing fee – $20,000
- Due diligence fee – $7000
- Government processing fee – $35,000
- Agent fee – $10,000
- Total – $72,000
So instead of paying $252,000 the victim pays less just $72,000 to get a passport, a way less than statutory minimum investment for real estate under the law (undersold). The developer will issue a share certificate saying that applicant has invested $200,000 for a term five years. The loophole here is government does not check the transfer receipt involving $200,000 to escrow account.
How to spot an underselling scam?
Be on lookout on suspicious quotes provided by CBI agents, look for these signs.
- If you receive a quote of less than $100,000 minimum set by government, it is most likely underselling scam.
- Cross verify the official citizenship by investment unit websites for the required minimum investment required for donation and real estate.
- Calculate the total costs using tools – Use our CBI calculators to see the actual costs you pay.
- Read the CBI acts and amendments to understand the law.
Consequences
As a result of this widespread scam, no real construction takes place, only the property exists on paper. This action deprives much needed citizenship revenues, jobs, tourism revenues, taxes for the country and people. The abuse opens doors to people receiving passports, who are financially not capable to invest the minimum.
Victims who have applied for citizenship by investment, may not even realise they have been conned by agents. Here are some problems you can face if you have applied already paying discounted investment.
- Citizenship and passports can be revoked anytime by government for not investing statutory minimum required investment
- You lose all the money you have paid.
- Applications won’t be processed by government (Agents will lie about the status)
- Expired passports won’t be renewed.
- Banks can initiate investigation or freeze your account over suspicious transaction, if investigated by US courts or investigation by law enforcement authorities
Best Citizenships as a global leader in the CBI industry for 13 years, we do not engage or promote illegal discounting or underselling scams.
We tell clients not fall prey to underselling or illegal discounting of citizenship by investment
The CBI units of five CIP nations have warned applicants, no discounts are permitted for citizenship by investment programs.
The Caribbean CIP nations have signed a memorandum of agreement to abolish underselling or discounting practices, to clean up and strengthen CBI programs establishing common framework on pricing, vetting standards and governance across all CIP nations. As a result, from Jul 1, 2024, minimum investments have been raised to $200,000 for CBI programs.