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What is the scope of required evidence on EB-5 sources of funds?

If the required EB-5 investment capital is obtained by selling assets of the investor, does he need to show USCIS any evidence of the financial legitimacy of the asset buyer?

Answers

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    Julia Roussinova

    Immigration Attorney
    Answered on

    As a seller you will also need to show that you have originally acquired assets with lawful funds, such as earnings, inheritance, gift, etc. As for the sale of assets, purchase and sale agreement, appraisal of assets, original ownership and title transfer documentation, funds tracing from buyer to seller''s personal account, etc. will be among the required evidence. Retain an experienced EB-5 immigration attorney and he or she will guide you and competently prepare your I-526 petition.

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    Marko Issever

    EB-5 Broker Dealer
    Answered on

    You do not need to show USCIS any evidence of the financial legitimacy of the asset buyer. That said, you will need to show the source of the funds you used to purchase the property you now intend to sell in order to fund the EB-5 investment. Otherwise, investors would simply purchase assets with funds whose source they cannot prove and then sell those assets to fund the EB-5 investment. That is why there is scrutiny on the funds used to purchase the assets that will be sold.

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    Salvatore Picataggio

    Immigration Attorney
    Answered on

    Probably not, but I would want to see the documentation regarding the sale to be sure.

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    Fredrick W Voigtmann

    Immigration Attorney
    Answered on

    It is unlikely that USCIS would request evidence of the source of funds from an asset buyer. USCIS adjudicates each I-526 petition, however, on a case-by-case basis. USCIS certainly will want to see how the investor lawfully earned the funds necessary to purchase the assets in the first place. If the assets were acquired by the investor other than through a purchase, USCIS will require evidence of the legal manner in which the investor acquired the assets. It is quite possible that USCIS will want to see the purchase agreement, a valuation or appraisal of the assets, proof of the investor's title to and ownership of the assets, and copies of the bank statements or other means of effectuating the transaction, i.e., the investor/seller receiving the sales proceeds as well as the title transfer to the buyer. An experienced EB-5 immigration attorney can advise on the specific evidence and documentation needed.

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    Phuong Le

    Immigration Attorney
    Answered on

    Generally no, but it may arise if it's a related party transaction (either a company with the same ownership or if the buyer is a family member). Most of the time the focus is on the initial SOF used to purchase the asset, however.

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    Jinhee Wilde

    Immigration Attorney
    Answered on

    The source of funds tracking is on your assets not your buyer. USCIS will require how you originally purchased the asset in the first place and how the money moved thereafter (path of funds) until you made the EB-5 investment.

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    Vaughan de Kirby

    Immigration Attorney
    Answered on

    If your EB-5 capital is derived from selling and an asset you will be required to demonstrate the source of the funds that were originally used to purchase that asset. The party that purchases your asset is not required to demonstrate the source of funds used.

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    Belma Chinchoy

    Immigration Attorney
    Answered on

    Yes. The level of detailed required will depend on the date of purchase; if in the last 10 years, detailed evidence of the source is expected.

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    Lynne Feldman

    Immigration Attorney
    Answered on

    No, but he will need to show where the money came from for him to have purchased the asset whenever.

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    Dale Schwartz

    Immigration Attorney
    Answered on

    It might be safer to show how the purchaser obtained his money. But I don't know of any regulation that requires this. I might suggest to file the I-526 without it, but be prepared to show it if they require you to do so.

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    Blake Harrison

    Immigration Attorney
    Answered on

    The application does not need to include evidence related to the asset purchaser's source of funds.

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    A Olusanjo Omoniyi

    Immigration Attorney
    Answered on

    The investor does not need to show any evidence of the finance of the asset buyer. Actually, the investor is the one who needs to show how he or she got money to acquire the assets that were sold. Additional documentation of compliance with the laws about those assets may be needed, particularly if the assets are real property. Advisably, consult with an EB-5 attorney for proper documentation of EB-5 sources of funds, particularly to show the sources are legal.

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    BoBi Ahn

    Immigration Attorney
    Answered on

    For EB-5 purposes the source of funds do not need to be traced to the asset buyer, but you need to show the proper documents of sale/purchase, etc.

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    Charles Foster

    Immigration Attorney
    Answered on

    If in fact you acquired your EB-5 investment funds by selling assets of the investor, normally you would not have to show evidence of the financial legitimacy of the asset buyer. It would be more likely that you would have to show the source of funds for the asset that you are selling.

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