As global scrutiny intensifies and regional reforms gain momentum, St. Lucia’s decision to reform its Citizenship by Investment Program signifies more than just a political pivot — it’s an effort to reclaim credibility. Deputy Prime Minister Ernest Hilaire states that the government has committed to restoring the program’s original structure, reversing reforms implemented under former Prime Minister Allen Chastanet. This move occurs against a backdrop of escalating political tensions and legal confrontations.
St Lucia’s Deputy Prime Minister Ernest Hilaire has confirmed that the Government intends to restore its Citizenship by Investment (CBI) Program to its original structure, undoing reforms made under the former administration led by now Opposition Leader Allen Chastanet. Speaking during a press briefing, Hilaire stated that legislative amendments are being prepared and will soon be presented to Parliament.
The Deputy Prime Minister, who also oversees the Citizenship by Investment Unit (CIU), emphasized that the program must return to its founding principles — including strict eligibility requirements, financial thresholds, and application caps. “We are going back to what it was originally designed to do,” Hilaire said, underlining the need for the CBI framework to support national development while maintaining integrity and credibility.
Among the key reforms the government is seeking to reintroduce are minimum net worth criteria for applicants, stricter due diligence standards, escrow-account requirements, and an annual quota system to prevent overuse of the program and ensure its sustainability. The restoration of these requirements, Hilaire explained, aims to rebuild public confidence and align St. Lucia’s program with international expectations.
A Response to Legal and Political Tensions
Hilaire’s remarks come against the backdrop of escalating political and legal tension over the country’s CBI Program, particularly following an urgent injunction filed in February 2025 by former Prime Minister Allen Chastanet
On February 20, Chastanet applied for a court order to freeze approvals under select real estate and enterprise projects within the CBI program, alleging that the current administration — and Minister Hilaire in particular — had approved projects in violation of existing laws and without proper oversight. The injunction, filed with the High Court of Justice, specifically targeted a major agreement between the Citizenship by Investment Board and Caribbean Galaxy Real Estate Ltd., which he claims authorized up to 5,000 citizenships over 24 months — a dramatic leap from the 700 initially approved under his administration.
Chastanet’s filing accuses the government of bypassing the regulatory framework, including requirements under certain legislative acts. He also alleges that citizenships may have been sold at drastically reduced prices — as low as $65,000, well below the legal minimum of $200,000 — resulting in substantial losses to the state.
While Hilaire previously described the offshore escrow arrangements set up under Chastanet’s government as a “Wild West,” he now finds himself defending the broader program in the face of these allegations. His statements this April indicate a shift — away from political blame and toward institutional restoration.
Undoing the Past, Reshaping the Future
Hilaire has been explicit in his desire to dismantle the program’s structure as revised during Chastanet’s tenure. The previous administration had removed the independent CBI Board and placed the Unit directly under the Prime Minister’s Office, significantly altering its governance model. In doing so, it introduced what Hilaire now views as weakened oversight and excessive discretion.
The forthcoming reforms aim to re-establish an independent and multi-stakeholder board, set application quotas, and reinforce net worth declarations and source-of-funds verification as core requirements. These measures, Hilaire says, are necessary not only for restoring credibility but also for ensuring the long-term viability of the program as an economic tool.
When St. Lucia launched its CBI Program in 2015, it positioned itself as the most conservative and strictly regulated offering in the region. The original framework, developed in consultation with international partners, included key guardrails that are now absent—and that Deputy Prime Minister Ernest Hilaire says his government intends to restore.
At the core of the original legislation were stringent eligibility criteria and tight administrative controls. Most notably, the program required applicants to demonstrate a minimum net worth of $3 million, a measure aimed at attracting only high-caliber investors. This financial threshold was designed to deter abuse and signal to international partners that St. Lucia was not offering citizenship to just anyone with cash in hand. The requirement was quietly removed in January 2017, under the administration of then-Prime Minister Allen Chastanet, to widen the applicant pool.
The program also imposed an application quota system, limiting the number of approvals to a manageable volume. While no fixed national cap was enshrined in law, the Investment Board operated with internal limits that helped prevent oversaturation and maintained exclusivity. In contrast, the current situation has seen the government enter into controversial agreements.
Another key safeguard was the use of escrow accounts, primarily in the real estate track, to ensure proper oversight of investor funds. Real estate developers were obligated to hold investments in secure accounts, with controlled disbursements tied to construction milestones. According to former officials, these funds were monitored and transparent, with government authorities maintaining access to financial records. While the legal framework for these accounts was never published in detail, insiders say it reflected best practices in fiduciary management. These standards, however, were significantly diluted during subsequent reforms.
Investment thresholds under the initial program were also comparatively higher:
- A $200,000 donation to the National Economic Fund (NEF) for single applicants.
- A $300,000 minimum investment in government-approved real estate.
- A $500,000 purchase of government bonds held for five years.
- And for enterprise projects, a $3.5 million minimum (or $6 million in joint ventures), with strict job creation requirements.
These thresholds reflected the government’s early intent to keep the program prestigious, manageable, and credible in the eyes of international observers. But as regional competition intensified and domestic revenues became increasingly tied to CBI inflows, these standards were gradually eroded.
By signaling a return to the original 2015 architecture, the government is betting that restoring confidence will be more valuable in the long run than chasing short-term application volumes. Whether the rollback can be executed swiftly and effectively, however, remains to be seen—especially in the face of fierce political resistance and complex legal entanglements now emerging in court.
Many stakeholders of the investment migration industry agree that It’s time to clean the slate and fix what went wrong, referring to the perceived regulatory decay and international scrutiny faced by St. Lucia and other Caribbean jurisdictions with CBI offerings. What’s at stake is not just the reputation of St. Lucia but the future of this industry in the Caribbean region.
The Galaxy Controversy and What It Reveals
At the center of Chastanet’s legal filing is Caribbean Galaxy’s Canelles Resort Project, a real estate development approved during his tenure but now the subject of significant controversy. Galaxy had originally requested 9,160 shares at $300,000 each, later seeking expanded allocations due to rising post-pandemic construction costs. Chastanet’s government approved the company as a CIP developer and granted permission to hold escrow accounts abroad.
However, the current dispute lies in the scale of approvals allegedly granted retroactively by the Hilaire administration — an arrangement that could potentially affect as many as 5,000 applicants. With St. Lucia already facing a processing backlog and average wait times exceeding many more months than officially declared. Critics argue that such an influx could cripple the CIU and compromise program integrity.
Chastanet’s injunction also targets other enterprise projects, which he claims lack the regulatory guidelines required under the Citizenship by Investment Act.
The Opposition Leader argues that these agreements were ultra vires — that is, made beyond legal authority — and therefore void and unenforceable. However, his filing does not request that previously granted citizenships be revoked, likely due to the complex constitutional and diplomatic implications such actions would entail.
The Memorandum of Agreement (MoA) signed in 2024 with other Caribbean countries, members of the OECS (Organization of Eastern Caribbean States) and with similar CBI programs, introduced a new pricing structure which led Hilaire to announce the government’s formal suspension of sales from the Enterprise option as well as the National Infrastructure Improvement Program and the BMX LLC housing project.
The government canceled developer agreements that failed to comply with the MoA and has started discussing new contracts in compliance with new realities.
The real estate option resumed operations because pricing changes did not impact current agreements. Hilaire said the A’ILA Resorts at Rodney Bay stands as the sole approved real estate development.
CBI Programs at a Crossroads
St. Lucia’s Citizenship by Investment Program, like those of its regional peers, has faced mounting pressure from both domestic stakeholders and international partners to raise standards, improve transparency, and ensure compliance with global norms.
The government’s plan to reintroduce original CBI features — including eligibility thresholds, application limits, and independent oversight — appears to be an attempt to do just that.
Parliament prepares to consider the legislative changes in the coming weeks. Whether these reforms will be enough to shield the CBI program from further controversy — or satisfy the increasingly wary global audience — remains to be seen.
At stake is more than just the viability of one island nation’s investment scheme. The credibility of the entire Caribbean CBI ecosystem rests on how well countries like St. Lucia respond to growing international expectations — and how decisively they act to restore public and investor confidence.
But for now, St. Lucia’s message is clear: it wants to return to the fundamentals, restore trust, and rebuild a program, which is envisioned as a secure and credible path to economic development.