EB5 Investors Magazine Volume 1 Issue 1 | Page 62

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The source of funds from Venezuela is difficult to monitor . However , because of their American business models , they have insured business property with international insurance companies ( such as Lloyds of London ).
Once the present government expropriates it , they receive funds from the insurance company . This is , in fact , the simplest Venezuelan case , but the majority of the cases are very complex .
There has been a monetary control exchange in Venezuela since 2003 , where individuals cannot freely acquire and transfer USD to their bank accounts in the United States .
Today , Venezuelans depend mainly on the black market and third parties to accumulate the necessary funds to invest . Therefore , a very detailed analysis is mandatory before a Venezuelan client can consider this option . Fortunately , Venezuelans are very business oriented and take every opportunity to transfer funds by legal means , including bonuses and other mechanisms that the government has allowed through the years . The standard situation is the Venezuelan client who has transferred the funds to the United States through government bonuses or when the investor ’ s company has been paid for the goods they acquired abroad using a governmental mechanism called cadivi . Other investors who cannot benefit from cadivi have been paid directly to their business accounts in the United States or in a tax haven country . What makes the source of funds more complex is that we have to submit evidence of funds that have already been transferred , in many cases , years ago .
Another group of high net worth individuals includes Mexican nationals . Similar to the Venezuelan applicant , the catalyst for Mexicans seeking EB-5 visas is increased danger . At one point , the country with the highest number of kidnappings was Mexico . The constant war between the drug cartel and the Mexican government leaves many victims in its wake . The source of funds from these individuals is a bit less complicated . Recently , because of the high rise of corruption , they have instituted strict tax regulatory laws . Moreover , Mexicans do not have any problems transferring their funds to the United States , thus , the case can be built from the ground evidence required to demonstrate the source of funds is completely satisfactory ; the client can transfer the funds to their personal account in the United States . This is a very different situation than with Venezuelans , where we need to demonstrate the funds with what the client can evidence . Mexican entrepreneurs must be very organized in order to comply with their current tax regulations . Thus , the invoices issued to the clients usually correspond with payments and bank deposits . This correlation makes the source of funds very straight forward . In addition , tax authorities are very strict in Mexico and this contributes to the client ’ s organization and record keeping , not only individually , but also at a corporate level .
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