Opposition Propaganda: Dominica Faces Financial Misinformation

Instead of constructive manner, the opposition in Dominica has been under assault for what their rivals call a conspiracy that destroys the validity of Dominica and disturbs its economic balance of the Caribbean region as a whole.

According to report by Spring Field Daily newspaper, this internal conflict, vested in the Citizenship by Investment programme on the island, proves that politically driven propaganda is a very destructive matter.

The CBI programme is a crucial source of income for Dominica, just like a few other Caribbean countries, including Antigua and Barbuda, Grenada, Saint Lucia, and St Kitts and Nevis. Such programmes are directed to attract investments into the country in exchange for citizenship, against financial commitments.

However, opposition reports have said that American banks are now starting to reject payments related to the CBI programme. The rumours are being spread which ultimately spell doom not only to the economy of Dominica but to other islands as well.

Notably, there is no evidence of any statement released by any American bank in connection to these reports. No one was even found complaining that their payment was being rejected but the authors of opposition.

It looks like the opposition (United Workers Party) in Dominica is using these false allegations to further their own political mileage internationally. This does not bode well for Dominica and further afield in the Caribbean. Each of these countries’ CBI programmes is based on stringent due diligence that aims to ensure the integrity of an applicant and his or her  source of funds.

This multi-layered due diligence process includes extensive background checks, detailed financial vetting, and face-to-face interviews with applicants and their dependents over the age of sixteen. Every person whose source of income is suspicious in any way is identified with a red flag by the US, UK and Europe-based due diligence agencies.

Within these controversies, however, it is worthy of note the very stringent measures that Caribbean-based banks are known to hold on to, in a bid to keep financial integrity.

The Governor and the Eastern Caribbean Central Bank play an important role in guiding the CBI countries in this respect. A senior regional banking official emphasized, “Currently, there is comprehensive due diligence and vetting on every single payment throughout the region. This includes payments linked to the CBI programmes.”

He added, “It is the standard practice to check the source of funds,” meaning very strictly observed financial protocols are in place.

This commitment to the maintenance of financial security and integrity resonates with the most senior Caribbean bankers. “It’s not just for us, or in the Caribbean, but throughout the world,” said person associated with the Caribbean bank.

It is at this juncture that one banker again highlighted, “Sometimes, the bank needs supplementary documentation for an authorization of a transaction as well as to meet KYC requirements. This is standard procedure whether you are sending money from one nation to another or anywhere else in the world.”

Such pronouncements re-emphasize the fact that the financial procedures in the Caribbean are not only stringent but also aligned with what obtains elsewhere in the world. Similarly, CBI-related funds are keenly monitored by intermediary country banks upon entering the Caribbean.

The check is further extended to each and every transaction, laying holds on those that appear to be illusive up to where compliance checks are accrued. Indeed, this makes the whole financial ecosystem in the Caribbean secure and transparent in respect to other international ecosystems.

However, all the misinformation advanced by the opposition can compromise this finance ecosystem, skilfully created and nurtured. It could generate fear in the investor and hence would disrupt the economy of the region. All the stakeholders have to be sure that the information dispensed, is verified and transparent to protect the credibility of CBI programmes, as well as to save the financial systems on which they are depended for success.

In essence, while the oppositions continue to blemish the name of Dominica on frivolous allegations, the region still upholds the ethos of financial integrity and due diligence. With the thrust on real information and clear procedures, Dominica and several other Caribbean countries have been successful in leveraging, and in remaining attractive to, genuine investors under their CBI programmes.