EB-5 Reform and Integrity Act (RIA) Compliance Fees Due by October 1
All stakeholders in the EB-5 Immigrant Investor Program are advised to take note that the EB-5 Integrity Fund annual compliance fees mandated by the EB-5 Reform and Integrity Act (RIA) are due by October 1, 2024. This fee is important for the continued operation of the EB-5 Regional Center Program and its enhanced integrity and oversight protocols.
What is the EB-5 Reform and Integrity Act (RIA)?
The EB-5 Reform and Integrity Act of 2022 (RIA) introduced several key reforms to the EB-5 Immigrant Investor Program, primarily aimed at increasing transparency and accountability within the program. One of the most notable changes was the establishment of an Integrity Fund to finance United States Citizenship and Immigration Services (USCIS) oversight of regional centers, ensuring compliance with regulatory requirements and enhancing program credibility.
Compliance Fees for Fiscal Year 2025
Under the RIA, all designated EB-5 regional centers must pay an annual compliance fee to the Integrity Fund. The fees differ based on the number of investors affiliated with a Regional Center with a structure highlighting $20,000 for regional centers with more than 20 investors and $10,000 for regional centers with 20 or fewer investors during the prior fiscal year.
This fee is required for the fiscal year 2025 and is due no later than October 1, 2024. Failure to pay the required fee by October 1 can lead to serious repercussions, including the suspension or termination of a regional center’s designation. This could impact ongoing projects and investor confidence, especially as USCIS ramps up enforcement under the new RIA framework.
Purpose of the EB-5 Integrity Fund
The EB-5 Integrity Fund is vital for the ongoing administration and supervision of the EB-5 program. The fund supports several key functions;
- Performs program oversight by ensuring USCIS has the resources to monitor regional centers and prevent fraud;
- Conduct site inspections and audits to verify compliance with the program’s rules and regulations;
- Enforcement Actions by enabling USCIS to take legal action when necessary to address non-compliance or fraudulent activities;
The RIA has enhanced the enforcement framework, and USCIS is now required to regularly audit regional centers and conduct more rigorous background checks on associated personnel. This added scrutiny aims to bolster the program’s reputation and protect both investors and the U.S. economy.
Why is this important?
The October 1 deadline is crucial for regional centers. Non-compliance could severely disrupt operations, and USCIS has made it clear that the fees are a requirement for maintaining good standing within the program. As the EB-5 industry continues to evolve, staying on top of these deadlines and regulatory changes is essential for regional centers looking to remain competitive and compliant.
Additionally, the compliance fees directly contribute to increased program transparency and effectiveness. Considering the program’s history of controversy and the need for stricter oversight, the Integrity Fund ensures that the program can operate efficiently and uphold its integrity.
The payment portal for the Integrity Fund can be accessed through the USCIS website. It is recommended that regional centers prepare and submit payments as early as possible to avoid any potential technical issues that may arise closer to the deadline.
The EB-5 program under greater scrutiny than ever, meeting the October 1 deadline is critical for regional centers. Compliance with the EB-5 RIA not only ensures continued participation in the program but also fosters trust in the integrity and transparency of EB-5 investments. Regional centers are urged to submit their payments promptly and take advantage of industry resources to stay informed about regulatory updates.
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