Visa Lawyer Blog
If you are an EB-5 investor in a Regional Center project, you may be interested to learn of new information released by the U.S. Citizenship and Immigration Services (USCIS) regarding Regional Center audits.
In March 2022, with the passage of the EB-5 Reform and Integrity Act of 2022, Congress implemented new reforms designed to increase the oversight of Regional Centers to prevent fraud and abuse within the immigrant investor program.
Among these fraud prevention mechanisms, USCIS established the EB-5 Integrity Fund, funded by annual regional center fees and immigrant petition fees, to detect and investigate fraud and other crimes related to the program, ensure compliance, conduct regional center audits (every five years) and site visits (for each new NCE or JCE).
USCIS recently released information confirming that the agency must audit each designated regional center at least once every five years.
What is done during a Regional Center audit?
Audits are performed during a site visit which include a review of documentation required to be maintained by the regional center and a review of the flow of immigrant investor capital into any capital investment project.
Effective April 23rd audits will be utilizing the Generally Accepted Government Auditing Standards, also known as the Yellow Book. The Yellow Book provides standards and guidance for auditors and audit organizations.
What is the purpose of Regional Center audits?
Regional center audits are conducted to strengthen the integrity of the EB-5 program by verifying information in regional center applications, annual certifications, and associated investor petitions.