EB-5 Regional Centers Receive Notice of Intent to Terminate by the USCIS for Failure to Pay Annual Integrity Fees
July 24 2024 - 7:14PM
The EB-5 Reform and Integrity Act of 2022 (“RIA”) made several key
changes to the EB-5 program and instituted several new compliance
requirements for regional centers wishing to continue doing
business under the RIA. One of these requirements, the Integrity
Fund, was established to provide USCIS with the additional
capital necessary to among other things, conduct investigations,
monitor program-related events both inside and outside of the U.S.,
ensure overall program compliance, detect and investigate fraud and
other crimes, and conduct regional center audits and site visits.
As outlined in the RIA, the Integrity Fund was to be fulfilled
by an annual fee due October 1st of each corresponding fiscal year.
Failure to pay the fee within 90 days of the due date would result
in the termination of the USCIS designation of any non-compliant
regional center.
Following the re-authorization of the program, USCIS held
stakeholder calls and provided statements discussing the payment of
the integrity fee and provided guidance as to questions surrounding
the payment of the fee, which per the terms of the RIA, would have
come due as early as October 1, 2022 for the 2023 fiscal year. As
USCIS worked to provide an organized process for payment of the
integrity fee, they also provided additional time for the 2023 fee
to be paid. Ultimately, USCIS provided definitive guidance on March
2, 2023 as to when 2023 fees as well as the 2024 fees would become
due. USCIS also provided extended time for the 2023 fee to be paid
by no later than May 31, 2023 with the 2024 fee becoming due by its
normal due date of October 1st. At the same time additional warning
was provided noting that regional centers that do not file their
I-956G annual report and pay their fees as required in 2023 would
be terminated in 2024.
Despite this guidance, it has come to the attention of the
industry that numerous regional centers, including regional centers
with active projects and ongoing EB-5 capital raises failed to
comply with the RIA and pay their Integrity Fees as required for
fiscal year 2023 and fiscal year 2024. Of the hundreds of active
regional centers, it has been estimated that as many as 25% or more
are now facing Notices of Intent to Terminate. Those terminations
could significantly impact the immigration pursuits of the
investors who have filed or plan to file under those regional
center designations.
Proper due diligence on the part of an aspiring EB-5 investor is
a crucial step in ensuring a smooth immigration process. Part of
that due diligence should focus on the regional center, their
leadership, their track record, and their compliance with the
requirements of the program. Filing annual reports and paying the
required fees is the absolute minimum expectation one could have of
any regional center wishing to remain active in the EB-5 industry.
Failure to comply with the most basic requirements of the program
should be a major red flag to any investor considering a project
sponsored by a regional center that is now facing termination.
CMB has complied with the RIA by paying the required Integrity
Fee for all 19 CMB Regional Centers for fiscal year 2023 and fiscal
year 2024. We encourage prospective investors as well as existing
investors to ask regional centers to confirm that they comply with
all program requirements, have paid all required fees, and have
made the proper annual filings. Additionally, we encourage
prospective investors to ask if the regional center they are
considering investing in is currently facing a Notice of Intent to
Terminate from USCIS. One should also ask themselves, if the
regional center cannot maintain compliance with the most basic
requirements of the program, what else have they missed and how
confident can I be that my regional center will be able to navigate
the evolving requirements of the program?
CMB Regional Centers
+1-309-797-1550
www.cmbeb5visa.com
info@cmbeb5visa.com