Saturday, December 28, 2013
OIG Report Criticizes USCIS Oversight of EB-5 Regional Centers
The Department of Homeland Security's Office of Inspector General has released a report reviewing EB-5 regional centers. The report found the following problems with USCIS oversight of regional centers:
• The laws and regulations governing the program do not give USCIS the authority to deny or terminate a regional center’s participation in the Employment-Based Fifth Preference program based on fraud or national security concerns;
• The program extends beyond current USCIS mission to secure America’s promise as a nation of immigrants and treads on other agencies' missions; and
• USCIS is unable to demonstrate the benefits of foreign investment into the U.S. economy based on concerns regarding the actual creation of US jobs based on the foreign investment.
OIG proposed the following recommendations to address the concerns:
Recommendation #1:
Update and clarify the Federal regulations to —
• provide the U.S. Citizenship and Immigration Services with the authority to deny or terminate EB-5 regional center participants at any phase of the process when identifying known connections to national security and/or
fraud risks without compromising any ongoing or potential investigation;
• make explicit that fraud and national security concerns can constitute cause for revocation of regional center status under 8 CFR § 205.2;
• give the U.S. Citizenship and Immigration Services the authority to verify that the foreign funds were invested in companies creating U.S. jobs; and
• ensure requirements for the EB-5 regional center program are applied consistently to all participants.
Recommendation #2:
Develop memoranda of understanding with the Departments of Commerce and Labor and the Securities and Exchange Commission to provide expertise and involvement in the adjudication of applications and petitions for the EB-5 regional center program.
Recommendation #3:
Conduct comprehensive reviews to determine how EB-5 funds have actually stimulated growth in the U.S. economy in accordance with the intent of theprogram. If necessary, employ other specialists or work with other Federal agencies to assist and confirm the results.
Recommendation #4:
Establish quality assurance steps to promote program integrity and ensure that regional centers comply with the Code of Federal Regulations requirements.
# posted by Greg Siskind @ 2:22 PM
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• The laws and regulations governing the program do not give USCIS the authority to deny or terminate a regional center’s participation in the Employment-Based Fifth Preference program based on fraud or national security concerns;
• The program extends beyond current USCIS mission to secure America’s promise as a nation of immigrants and treads on other agencies' missions; and
• USCIS is unable to demonstrate the benefits of foreign investment into the U.S. economy based on concerns regarding the actual creation of US jobs based on the foreign investment.
OIG proposed the following recommendations to address the concerns:
Recommendation #1:
Update and clarify the Federal regulations to —
• provide the U.S. Citizenship and Immigration Services with the authority to deny or terminate EB-5 regional center participants at any phase of the process when identifying known connections to national security and/or
fraud risks without compromising any ongoing or potential investigation;
• make explicit that fraud and national security concerns can constitute cause for revocation of regional center status under 8 CFR § 205.2;
• give the U.S. Citizenship and Immigration Services the authority to verify that the foreign funds were invested in companies creating U.S. jobs; and
• ensure requirements for the EB-5 regional center program are applied consistently to all participants.
Recommendation #2:
Develop memoranda of understanding with the Departments of Commerce and Labor and the Securities and Exchange Commission to provide expertise and involvement in the adjudication of applications and petitions for the EB-5 regional center program.
Recommendation #3:
Conduct comprehensive reviews to determine how EB-5 funds have actually stimulated growth in the U.S. economy in accordance with the intent of theprogram. If necessary, employ other specialists or work with other Federal agencies to assist and confirm the results.
Recommendation #4:
Establish quality assurance steps to promote program integrity and ensure that regional centers comply with the Code of Federal Regulations requirements.
# posted by Greg Siskind @ 2:22 PM
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