Changes proposed for foreign investment

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The Lolo Lemanu administration is moving to amend the application process for foreigners and foreign companies that want to invest in the territory.

Amendments to current law are on the agenda for the Special Session of the Fono which started today and is supposed to last for 10 days.

A whole section on financial requirements for foreign investors is to be removed.

The current law requires a financial report certified by a registered and certified public accounting firm, evidence that applicant has made available or obtained the financing for an investment of at least $1 million for an individual enterprise that has received an approval letter ,for a certificate of foreign investment in American Samoa, with such investment already placed in escrow in American Samoa in a designated, financial banking institution.

Or evidence that the applicant has already invested at least $250,000 in a bona fide corporation or partnership capitalized at no less than $5 million, registered in American samoa with an approval letter for a certificate of foreign investment.

The new bill only requires a background report which may be conducted by the Department of Homeland Security and or a Certificate of Foreign Investment from the Director of Commence for the approved investment enterprise.

This information may be submitted in electronic form.

The requirement for three reference letters of good character from non relatives on behalf of the foreign investor would also be removed.  This would be replaced by a report on the applicants and dependents criminal history form the country of origin.

According to Governor Lolo. American Samoa’s Foreign Investment Program, has been inexistence for more than 10 years. However the application process has not been updated to reflect technological advances. He said the difficulty in applying has discouraged applicants and deprived the territory of important investment funds that would greatly benefit our economy.

The bill was introduced in both the House and Senate this morning.