EB-5 Compliance Initiatives For Regional Centers

What are USCIS's EB-5 compliance initiatives and what do they mean for regional centers and EB-5 investors?

The goal of these new EB-5 compliance initiatives is to prevent fraud by pressuring regional centers to improve EB-5 oversight and transparency.

The EB-5 compliance initiatives include regional center audits, random site visits, and EB-5 investor interviews. USCIS Fraud Detection department along with the National Security Directorate (FDNS) instituted these compliance initiatives.

These compliance initiatives are not new to other immigrant visa programs. The H-1B visas, the L-1 visas, and the R-1 visas have already been conducting these types of compliance initiatives for years.These initiatives, however, are very unfamiliar to the EB-5 investors and project managers, and that can make them scary.Regional centers may come face to face with federal agents at any time. They make unannounced visits for inspections. Some of the things they ask for or look for include:

  • They may ask to speak to the regional center's principals;
  • They may inspect the regional center for EB-5 compliance;
  • They may ask for details on or descriptions of the EB-5 projects;
  • They may ask for contracts, tax records, and documents relating to the transfer of EB-5 funds and escrow accounts;
  • and, They may ask for documents regarding an EB-5 project's economic forecasts and specifically the job creation projections.

The last of the EB-5 compliance initiatives are the investor interviews at the I-829 stage.

  • The initial interviews are done online.
  • EB-5 investors can have a regional center representative accompany them.
  • The investors must answer questions regarding the allocation of their capital investment along with job creation. Therefore, it's imperative that the regional center's keep their EB-5 investors well-informed on the particulars of the projects.

In order to better prepare for site visits or audits, speak to a knowledgeable and qualified EB-5 attorney who can help provide strategies for a successful visit, assemble the appropriate records and documentation, and even offer live assistance on site.

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