Special Counsel Eric Berg was quoted in a Compliance Week
article, “As SEC Targets EB-5 Fraud, the Visa Program Could Raise Money Laundering Risks
,” on March 29, 2016. The article discussed the increasing use of the Employment-Based Fifth (EB-5) Preference program, which encourages capital investment in the United States by foreign investors in exchange for “green cards.” The program has come under scrutiny in regards to money laundering and the Securities and Exchange Commission (SEC) has started targeting the program.
Berg discussed how financial institutions have yet to be targeted, even after the SEC has begun working with the Financial Industry Regulatory Authority. He was quoted saying, “The government is paying more attention to the corrupt acquisition of wealth overseas. The risk to financial institutions is determining how the wealth was obtained and trying, to the best of their ability, not to deal with tainted funds. When foreign investors bring money into this country, it would probably behoove you to do more than the standard due diligence you would for opening a checking and savings account.”