Questions and Answers: Timeframe to Examine Lawful Source of Investor Funds

Question: In proving the source of funds, an alien may claim that certain assets were liquidated or sold. USCIS’s EB-5 training materials state that “If the assets were acquired recently, ask for evidence of how and when they were obtained.” Please explain how an adjudicator will define the word “recent” in his/her review of the application. How recent is recent? 5 years? 10 years? If an investor bought a house in 2002 and sold it in 2010, will he be asked to provide evidence regarding the source of funds used to buy the house initially? How far back must we go to obtain documentation?

Response: The definition of “capital” at 8 CFR 204.6(e) makes clear that assets acquired, directly or indirectly, by unlawful means shall not be considered to be capital under INA 203(b)(5). Likewise, 8 CFR 204.6(j)(3) requires that I-526 petitions must be supported by evidence of the source of the investor’s capital. The 2008 EB-5 training materials referenced in the question do not define the word “recent”. Defining a blanket timeframe for the examination of the lawful source of an investor’s funds is not appropriate. Circumstances may differ from case to case. In some instances the source of the capital is readily apparent based upon the evidence presented, where in other cases the evidence regarding the source of the capital may be more tenuous, requiring supplemental documentation.

Taken from USCIS Quarterly EB-5 Stakeholders Meeting on June 30, 2011