continent and corner of the world. From South Africa and Moscow to India and Brazil, the great Easter egg hunt is on.
It is estimated that the top four countries providing investors, besides China, would be India, Vietnam, Brazil and South Korea. More empirical data by NES Financial shows that for the first time in history, the amount of investment being placed into escrow from India topped the amount coming from China in November of 2017.
This rapid growth in countries such as India and Brazil, which lack an experienced agent network capable of providing SOF reporting in-house, has led to the need for outsourced SOF reports by experienced accounting firms and service providers to fill in the gap.
Most EB-5 veterans are used to doing the majority of their marketing in China, since the area traditionally has been the source of 85 percent of all investors in the EB-5 marketplace.
This huge demand has led to backlogs and waiting of 10 years or more for Chinese investors. The market was the most mature in the world, mainly due to its infrastructure and agent network that was well developed before the EB-5 boom of 2010.
This infrastructure included tier 1 and tier 2 agents that had large staffs capable of understanding source of funds( SOF) and presenting SOF packages to U. S. immigration attorneys that was usually more than 70 percent complete.
This led to a very efficient system that allowed for the facilitation of a large number of investors from China to flow into the U. S. via the EB-5 program.
DUE TO RETROGRESSION, A SHIFTING MARKET
Now that China has retrogressed to such a long wait, it is expected that the number of investors coming from China will drop by an estimated 80 percent by the fall of 2018.
This has led regional center operators and stakeholders on a global diversification to set up their niche for nearly every
WITHOUT INFRASTRUCTURE, AGENTS AND CHEAP LABOR, NO SOURCE OF FUNDS IN MASS NUMBERS
With the lack of a local infrastructure in place, it is not possible for most firms to keep up with the large volume of cases coming in from so many diverse countries across the globe. Each country requires legal and accounting staff that speak the local language and understand the issues affecting the SOF and path of funds in each country. Looking at the top four countries in terms of specific challenges, there are a few hurdles for each.
INDIA
The country has remittance restrictions of $ 250,000 per person per fiscal year. These are under the RBI liberalized scheme and the ancillary requirements of where such remittances can be sent. In other words, you have to make sure the transfers are going for a specific purpose.
Since India has a large cash-based economy, it can be a challenge dealing with property sales and the issue of“ black money,” which is funds earned from the black market that have avoided taxation, and tracing where the cash came from in a property sale. There are multiple languages in India, making it difficult in smaller markets where English is less prevalent.
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