A N A L Y Z I N G
B I L L
S . 1 5 0 1
Changes for Source
and Path of Funds
Adjudications - Again!
by Anusree Nair
Over the past few years, USCIS’s EB-5 stakeholder
meetings have been dedicated to project issues,
with few dealing with investor issues. However,
over the past year we have seen greater scrutiny
of investors: both through a seeming change in
policy regarding source-of-funds adjudication,
as well as in broader investigation of investors,
which have both resulted in a greater number of
Requests for Evidence (RFE) focusing on investor
source and path of funds.
This increased scrutiny of investors coincides with two
changes at the IPO: (i) Nicholas Colucci being named director
of the EB-5 program; and (ii) the transfer of EB-5 adjudications from the California Service Center to Washington,
D.C. As the former deputy director of the Financial Crimes
Enforcement Network (FinCEN), Mr. Colucci has focused the
IPO’s attention on source-of-funds issues through expanded
investigations into the investor’s source of funds and previous
immigration history.
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Both the director and the IPO hold that the new policies and
procedures aim to prevent fraud and improve the integrity of
the program. While that may be the case, the implementation
of some of these changes without notice and without engaging
the stakeholders is frustrating EB-5 investors, attorneys, and
regional centers. Additionally, given the recent cut-off date
in the EB-5 category for mainland China, consistency in the
adjudication of I-526 petitions is vital.
Independent Investigation of Source of Funds
According to Mr. Colucci’s opening statement at the
December 2014 stakeholder meeting, USCIS intends to
strengthen the integrity of the EB-5 program by : (i) expanding the Fraud Detection and National Security (FDNS) team
and conducting site visits both domestically and abroad to
validate supporting documentation; (ii) utilizing government
databases; and (iii) improving inter-agency communication.
EB5 INVESTORS MAGAZINE