How Armen Sargsyan Became a Citizen of Saint Kitts and Nevis

Since the 1980s, the wealthy around the world have had the opportunity to legally purchase passports and visas in various countries in exchange for investments, reports hetq.am.

These countries allow political and business elites, as well as associated individuals, to make investments of thousands of dollars (including in real estate) and receive a passport and visa from that country in return. Saint Kitts and Nevis, located in the Caribbean Sea, was one of the first countries to develop such a program (1984).

All investments and transactions are organized through legal firms. One of the leading companies in this field is Henley and Partners, headquartered in the United Kingdom, led by Christian Kälin, nicknamed the Passport King. The Organized Crime and Corruption Reporting Project (OCCRP) and the Daphne Caruana Galizia Foundation have conducted a joint investigation into the activities of Henley and Partners in Caribbean countries.

The investigation revealed that among the company's clients were individuals somehow connected to financial crimes, money laundering, evasion of sanctions, political power, and unjustified wealth. Such individuals ought to raise reasonable suspicions both for this company and the countries providing citizenship.

Despite this, they were able to obtain citizenship in Saint Kitts through investment. Among those connected to Armenia who acquired citizenship in Saint Kitts through this program are the wife of Russian and Armenian citizen and businessman Ruben Vardanyan and seven family members.

Henley and Partners sees no issues in its operations. In response to OCCRP inquiries, the company claimed that it has always complied with local and international laws and regulations and that problematic clients are few compared to good clients, which they evaluate as “very positive news.”

The governmental bodies responsible for Saint Kitts and Nevis' citizenship by investment program have provided no comments at all.

Henley and Partners, in particular, and the passport-selling sector in general, have faced severe criticism in recent years due to several international scandals related to citizenship by investment programs in countries such as Malta and Cyprus. Critics of such programs argue that second citizenship allows individuals involved in criminal activities to evade justice, conceal their identities, and launder illicit funds.

Moreover, citizens and political groups in countries with such programs may find it socially unjust that individuals who have never lived in those countries and have no ties to them can become citizens simply by paying a certain amount of money. This can lead to social protests and the rise of right-wing populist parties.

Representatives working in this multi-billion dollar sector, contrary to the critics, argue that an additional passport can help entrepreneurs from poor countries travel freely and protect themselves from the authoritarian regimes in their countries. At the same time, such programs can generate a significant influx of investments into the country implementing the program.

Armen Sargsyan acquired citizenship for an investment of $500,000. OCCRP and Hetq have obtained internal documents from Henley and Partners indicating that Sargsyan was already a citizen of Saint Kitts and Nevis at least since 2013.

As is known, according to Article 124 of the Constitution of the Republic of Armenia, “the President of Armenia can only be elected from among citizens of the Republic of Armenia who have been citizens for the last six years.” Sargsyan was elected to the presidential position on March 2, 2018.

In our previous publication, much was clarified during the correspondence with Armen Sargsyan, thanks to the information he provided. It should be noted that Sargsyan's explanations and story are quite convoluted.

He told us that he made an investment of about half a million dollars for the development of the Park Hyatt hotel in Saint Kitts. The investment process was organized by Range Developments. In return, Armen Sargsyan received citizenship of Saint Kitts. However, Sargsyan claims that he was not interested in acquiring the passport of Saint Kitts and Nevis at all, as “the investment was the driving factor.”

According to Sargsyan's explanation, after obtaining the citizenship of Saint Kitts and Nevis, he initially wrote to Range Developments, which organized the investment, and requested to suspend the passport's activities until further notice.

In August 2013, when Sargsyan realized he could be appointed as the Ambassador of Armenia to the United Kingdom (he was appointed on September 27, 2013), he transferred his hotel shares to a family member and requested his lawyer to return the passport of Saint Kitts and Nevis.