EB5 Investors Magazine Volume 1 Issue 1 | Page 62

Continued from page 61
The source of funds from Venezuela is difficult to monitor . However , because of their American business models , they have insured business property with international insurance companies ( such as Lloyds of London ).
Once the present government expropriates it , they receive funds from the insurance company . This is , in fact , the simplest Venezuelan case , but the majority of the cases are very complex .
There has been a monetary control exchange in Venezuela since 2003 , where individuals cannot freely acquire and transfer USD to their bank accounts in the United States .
Today , Venezuelans depend mainly on the black market and third parties to accumulate the necessary funds to invest . Therefore , a very detailed analysis is mandatory before a Venezuelan client can consider this option . Fortunately , Venezuelans are very business oriented and take every opportunity to transfer funds by legal means , including bonuses and other mechanisms that the government has allowed through the years . The standard situation is the Venezuelan client who has transferred the funds to the United States through government bonuses or when the investor ’ s company has been paid for the goods they acquired abroad using a governmental mechanism called cadivi . Other investors who cannot benefit from cadivi have been paid directly to their business accounts in the United States or in a tax haven country . What makes the source of funds more complex is that we have to submit evidence of funds that have already been transferred , in many cases , years ago .
Another group of high net worth individuals includes Mexican nationals . Similar to the Venezuelan applicant , the catalyst for Mexicans seeking EB-5 visas is increased danger . At one point , the country with the highest number of kidnappings was Mexico . The constant war between the drug cartel and the Mexican government leaves many victims in its wake . The source of funds from these individuals is a bit less complicated . Recently , because of the high rise of corruption , they have instituted strict tax regulatory laws . Moreover , Mexicans do not have any problems transferring their funds to the United States , thus , the case can be built from the ground evidence required to demonstrate the source of funds is completely satisfactory ; the client can transfer the funds to their personal account in the United States . This is a very different situation than with Venezuelans , where we need to demonstrate the funds with what the client can evidence . Mexican entrepreneurs must be very organized in order to comply with their current tax regulations . Thus , the invoices issued to the clients usually correspond with payments and bank deposits . This correlation makes the source of funds very straight forward . In addition , tax authorities are very strict in Mexico and this contributes to the client ’ s organization and record keeping , not only individually , but also at a corporate level .
62 EB5 Investors Magazine
Continued from page 61 The source of funds from Venezuela is difficult to monitor. However, because of their American business models, they have insured business property with international insurance companies (such as Lloyds of London). Once the present government expropriates it, they receive funds from the insurance company. This is, in fact, the simplest Venezuelan case, but the majority of the cases are very complex. There has been a monetary control exchange in Venezuela since 2003, where individuals cannot freely acquire and transfer USD to their bank accounts in the United States. Today, Venezuelans depend mainly on the black market and third parties to accumulate the necessary funds to invest. Therefore, a very detailed analysis is mandatory before a Venezuelan client can consider this option. Fortunately, Venezuelans are very business oriented and take every opportunity to transfer funds by legal means, including bonuses and other mechanisms that the government has allowed through the years. The standard situation is the Venezuelan client who has transferred the funds to the United States through government bonuses or when the investor’s company has been paid for the goods they acquired abroad using a governmental mechanism called cadivi. Other investors who cannot benefit from cadivi have been paid directly to their business accounts in the United States or in a tax haven country. What makes the source of funds more complex is that we have to submit evidence of funds that have already been transferred, in many cases, years ago. 62 Another group of high net worth individuals includes Mexican nationals. Similar to the Venezuelan applicant, the catalyst for Mexicans seeking EB-5 visas is increased danger. At one point, the country with the highest number of kidnappings was Mexico. The constant war between the drug cartel and the Mexican government leaves many victims in its wake. The source of funds from these individuals is a bit less complicated. Recently, because of the high rise of corruption, they have instituted strict tax regulatory laws. Moreover, Mexicans do not have any problems transferring their funds to the United States, thus, the case can be built from the ground evidence required to demonstrate the source of funds is completely satisfactory; the client can transfer the funds to their personal account in the United States. This is a very different situation than with Venezuelans, where we need to demonstrate the funds with what the client can evidence. Mexican entrepreneurs must be very organized in order to comply with their current tax regulations. Thus, the invoices issued to the clients usually correspond with payments and bank deposits. This correlation makes the source of funds very straight forward. In addition, tax authorities are very strict in Mexico and this �۝�X�]\�H�Y[�8�&\�ܙ�[�^�][ۈ[��X�ܙ�Y\[����ۛH[�]�YX[K�][��]H�ܜܘ]H]�[ ���H� HH��H����HY�H�H�B��