What Happens If an Applicant Fails a Due Diligence Check?

What Happens If an Applicant Fails a Due Diligence Check?
November 27, 2016 - Guide

In Part Two of this series on background checks we explore what happens when an applicant fails a Due Diligence (DD) check.

Telling us more is Mr. Les Khan, the head of the Citizenship by Investment Unit (CBIU) of St Kitts and Nevis and a former Director of Due Diligence provider IPSA.

You can read the first part of the series How Do Governments Conduct Background Checks? here

What are the most common reasons for an application being denied?

There are two main elements that lead to a denial of a citizenship application based on a background check:

  • Whether the person is deemed a security risk
  • Whether the individual is involved in any activities that carry a reputational risk

What happens if someone has a previous criminal or civil suit against them or their business concerns?

A criminal conviction is cause for concern. A civil suit needs to be mentioned and explained and does not lead to an automatic denial.

What happens when an applicant fails the due diligence check?

If an applicant is deemed a security risk it is an automatic denial. The Unit makes the recommendation for denial and the Technical Committee, independently commissioned by the Government, reconfirms the decision after ensuring due process has been carried out.

If the applicant is deemed a reputational risk, the processing agent is informed and asked to present any further documentation that could sway the decision, supported by the necessary affidavits. The Technical Committee then evaluates all the information presented before taking a decision.

What advice would you give potential applicants to ensure a smooth due diligence process?

I would advise clients to be completely transparent with their agents. Don’t leave any information out – we will find out about it and it will cause more issues if we find out at the DD stage than if it is declared upfront.

Moreover, share complete information. Do not leave out companies you operate as we will be asked to explain your relationship to them and how they impact your source of funds and wealth.

Any parting comments?

Applicants must remember that citizenship is a privilege not a right. St Kitts and Nevis’ duty is to existing citizens and to ensuring that any new citizenships granted do not compromise the safety and reputation of the nation and its people.

We see each application as a relationship between the applicant, the Unit, the agent and the DD provider. It needs to be an open relationship. Our goal is to ensure that applicants of good character are approved in a timely and efficient manner.

Interested in knowing more about the process of applying for legal second citizenship? Email [email protected] or call +97145541449 and we will be more than happy to assist. For updates follow PassPro on LinkedIn, Twitter @PassProNews or Facebook/PassProCitizenship

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