Questions & Answers

How can I prove the source of funds for money earned through an offshore company?

I am Egyptian with Grenadian citizenship. I have an offshore forex trading company registered in Grenada. All my income goes into the bank account of the company. There are no tax liabilities on offshore corporations in Grenada, so the company does not have taxation records. I want to apply for EB-5 with the money I made through this company. What documents do I need to provide to prove the source of funds?

Answers

• A Olusanjo Omoniyi

  Immigration Attorney

  Answered on July 9, 2019

  Your list of documents will be unique and specific to the "operations of offshore forex trading company registered in Grenada." Also, be sure that you need to ensure you comply with Grenadian laws. There are instances in which USCIS has denied or questioned documentation if there is an apparent lack of compliance with the laws of source of funds. In essence, this a matter of compliance with the laws of the jurisdiction where you earned the money, since you must demonstrate you have been complying with Grenadian laws in the course of operating your business. Advisably, consult attorney with international laws or someone with deep understanding of Grenadian laws.

• Julia Roussinova

  Immigration Attorney

  Answered on June 11, 2019

  Offshore companies do have certain registration records. You should also be able to provide transaction records, bank account records or statements, and trace funds. An accountant may provide financial report or audited statement. A local tax attorney should produce a letter explaining local tax law requirements and cite applicable tax code sections to explain why there is no tax filing requirements. Declarations can also be used to supplement and explain document deficiencies. Hire an experienced EB-5 immigration attorney to guide you regarding types of evidence and competently prepare an I-526 petition.

• Lynne Feldman

  Immigration Attorney

  Answered on June 10, 2019

  Bank records, accountant P and L, registration documents with the country?

• Salvatore Picataggio

  Immigration Attorney

  Answered on June 10, 2019

  Tax records are one form of many forms of acceptable evidence for source of funds. Bank statements, transfer documents, etc., can be used. Working with an immigration attorney will help you get the best source of funds package together.

• Hassan Elkhalil

  Immigration Attorney

  Answered on June 7, 2019

  Recently, we have been asking our client to invest in preparing a source of funds report to submit with the I-526. Although you are not paying taxes as per the country's law, it is the source of the funds that is important. Of course, the more documents you have the better your application is. In your case, I would ask for supporting documents from the date the account was open and establish a chain of the funds. This process can be prepared as a separate and independent report to send with your application.

• BoBi Ahn

  Immigration Attorney

  Answered on June 7, 2019

  Since the income is going into the bank account of the trading company in Grenada and not as your personal income, I think there is also an added element of showing that the funds belong to you and not the company. Legality of the source of funds will also have to be shown, but that may not be an issue if you can show the money trail.

• Bernard P Wolfsdorf

  Immigration Attorney

  Answered on June 7, 2019

  You should have the ledger of transactions and you should have bank records, so I would supplement these with a declaration and any other evidence you have confirming the legitimacy of this business. A statement from your accountant and, if possible, audited accounting records could also help.

• Marko Issever

  EB-5 Broker Dealer

  Answered on June 6, 2019

  Source of funds is all about being able to track the funds and showing that you have complied with local laws. You need to be able to prove that the money earned from foreign exchange trading in Grenada was in fact legitimate. Since there are no tax liabilities in Grenada, the fact that you have not paid any taxes there should not be a problem. As long as you can also secure a certified financial advisor statement saying you are clear from Egyptian taxes, you should be in good shape.

• Sally Amirghahari

  Immigration Attorney

  Answered on June 6, 2019

  You should consult with an attorney who is specialized and familiar with this type of funds and transactions. I represent mostly Middle Eastern clients and have assisted many Middle Easterners' EB-5s, including Egyptians with their source of funds.

• Dale Schwartz

  Immigration Attorney

  Answered on June 6, 2019

  It's hard, but not impossible without tax returns. Perhaps bank statements and invoices. What records do you generate for sales?

• Charles Foster

  Immigration Attorney

  Answered on June 6, 2019

  In order to prove a lawful source of funds, you'd have to show that your Grenadian company generated those funds from a lawful source, and in turn, that the same company paid you those funds as a salary, bonus or dividend. You'd also need sufficient documentation through your accountant tax and bank transactions.