ST. GEORGE’S, GRENADA – The Investment Migration Agency of Grenada (IMA Grenada) has intensified its crackdown on owner-financed Citizenship by Investment (CBI) applications, declaring the practice a form of illegal discounting. The agency has already denied nine applications and is in the process of revoking the citizenship of an applicant who benefited from price discounting.

The March 5 circular, the third issued by the agency on this matter, reinforces the IMA’s long-standing concerns about illegal discounting – practices that ultimately reduce the investment sum paid to developers by CBI applicants before the completion and operation of the real estate projects. The agency first addressed the issue in a 2021 circular and has been building its case ever since. However, it was only two weeks before the most recent circular that IMA Grenada obtained what it described as “irrevocable evidence” in the form of a loan agreement detailing owner financing activities.

Illegal Owner Financing Under Fire

During a recent meeting with licensed marketing and local agents, IMA Grenada’s CEO Thomas Anthony and Richard Duncan O.B.E., Chairman of the Citizenship by Investment Committee, reaffirmed their firm stance against the practice.

“The notion of owner financing is the problem. Financing from a developer, marketing agent, or affiliated company or entity is the issue,” said Duncan, emphasizing that an applicant’s source of funds must be independent and legitimate.

They also reiterated concerns over CBI applicants borrowing from local banks, stressing that the program is designed to attract foreign direct investment, not to recycle local funds.

Tough Penalties for Violators

The March 5 circular accused a developer, its marketing agent, and affiliated subagents of facilitating owner financing and discounting for CBI applicants. The agency found that the developer—whose name was not disclosed—provided a US$100,000 loan to an applicant investing in its project, an act condemned as “illegal, unauthorized, and egregious.”

The circular outlined strict penalties for those violating IMA Grenada’s regulations, including:

• Revocation of licenses
• Rejection or denial of applications
• Decertification of projects
• Revocation of citizenship

More Enforcement Action to Come

The IMA has given the developer and marketing agent until March 14 to take corrective action or face further consequences.

“This isn’t the end point, but a list of continuing escalating actions, particularly if the offending developer and marketing agent does not act in accordance with the requests made by the IMA,” said Anthony.

Commitment to Investor Protection

While the agency is taking firm action against violators, it reassured legitimate investors that they will not be penalized. If a marketing agent or developer is delisted, affected applicants will be allowed to switch marketing agents, projects, or even investment options—at no additional cost.

“Turbulence in the market is never a good thing; but sometimes at the end of it, the market is better off,” said Duncan.

“We want to make sure that the investors are not in any way un-faired…because Grenada is an investor-friendly nation.”

Grenada’s CBI Program: Key Facts

Grenada’s Citizenship by Investment Program, established in 2013, offers three investment options:

• The National Transformation Fund – Minimum investment: US$235,000
• The Real Estate Option – Minimum investment: US$270,000
• The Significant Investment Option – Minimum investment: US$2M

Applicants who pay less than the required investment sums risk having their applications denied or their citizenship revoked due to illegal discounting. For those seeking legitimate CBI opportunities in Grenada, contact My Grenada Solutions Inc. Our licensed Grenadian advisors ensure full compliance with program regulations.