Working with “ hidden figures ” of the EB-5 process
How did RIA impact the source of funds criteria and what are the considerations in documenting a third-party contribution to the investment funds ?
By Natalia Polukhtin
The EB-5 Reform and Integrity Act of 2022 ( RIA ) became law as part of the Consolidated Appropriations Act over a year ago . The EB-5 community now recognizes the challenges of adjustment to the new statutory framework RIA introduced to Regional Centers and investors alike . One significant aspect of the newly imposed heightened standards for demonstrating lawful source of funds is a common scenario when a third party contributes to or participates in delivery of investment capital to the EB-5 project .
LEGAL FRAMEWORK : SOMETHING OLD , SOMETHING NEW
As it was prior to the reauthorization of EB-5 program , the major condition imposed on the EB-5 petitioners is still the requirement that the investment capital be lawfully obtained and clearly attributed to the investor . 1 The regulation specifically excludes “[ a ] ssets acquired , directly or indirectly , by unlawful means ( such as criminal
10 EB5 INVESTORS MAGAZINE