At Wekesa Royalty Real Estate and Investment, we prioritize the security, confidentiality, and efficiency of our international clients’ transactions. Our decision to partner with an offshore financial institution in St. Vincent and the Grenadines for escrow services is based on several strategic reasons:
Limited Options in the USA and UK
The majority of financial institutions in the USA and UK handle escrow services exclusively for real estate transactions within their own countries. Only a small percentage (approximately 2%) consider international transactions, and even then, they are usually restricted to certain established countries like Mexico, Canada, and the UK. Moreover, these services are often reserved for existing high net worth individuals (HNWI) with transaction requirements of $50 million or more. Unfortunately, African countries, including Kenya, are rarely included on these lists.
Challenges in Kenya
Considering Kenya for our escrow services posed significant challenges:
- High Corruption Levels: Kenya’s high corruption levels and the lengthy process for legal recourse make it a less viable option. Personal experiences and numerous accounts indicate that the involvement of foreigners often leads to inflated prices and demands for bribes.
- Confidentiality Concerns: Many diaspora clients prefer to keep their financial matters private to avoid any prejudice related to tribalism or other biases that might arise from their names or origins.
Why St. Vincent and the Grenadines?
Despite not being among the top-tier offshore banking jurisdictions like Switzerland or Singapore, St. Vincent and the Grenadines (SVG) offers several advantages that align well with our clients’ needs:
- Confidentiality: SVG provides a high level of banking secrecy, ensuring that our clients’ financial information remains confidential.
- Tax Benefits: The country’s tax-neutral environment means there are no direct taxes on income, capital gains, or inheritance for offshore entities, making it an attractive option for international transactions.
- Regulatory Framework: The Financial Services Authority (FSA) in SVG oversees the financial sector, offering a supportive regulatory environment for offshore banking.
Conclusion
Choosing St. Vincent and the Grenadines for our escrow services allows us to offer our clients secure, confidential, and efficient financial transactions. While SVG may not rank as highly as some of the top offshore banking destinations, its benefits make it a suitable choice for the clients we aim to serve. For high net worth individuals, alternative private banking options may be more appropriate, but for many of our clients, SVG provides the optimal balance of service and cost efficiency.
This strategic decision reflects our commitment to providing the best possible services while navigating the complexities of international real estate investments.
Please read about our chosen escrow partner: St Vincent Trust and Escrow, Ltd.
Sources:
- Transparency International’s Corruption Perceptions Index: Transparency.org
- Financial Services Authority of St. Vincent and the Grenadines: Financial Services Authority
- General offshore banking information: Investopedia
