EB-5 and Money Laundering Article Published in ACAMS Today

The Sept/Nov 2019 edition of ACAMS Today features an article authored by DSA president, Alison Jimenez, titled “EB-5: Pathway to US Citizenship or Money Laundering Concern?”

The article provides an overview of the EB-5 immigrant investor program and financial institutions role in escrow accounts, offering securities, and bridge loans to developers.

AML and Fraud Risks are broken-down into:

  • KYC issues
  • Illicit or Unknown Source of Funds
  • Transactions without a Purpose
  • Funnel Accounts & Hawala
  • Theft of Investor Funds and/or Ponzi Schemes

The article also discusses the disincentive for immigrant investors to report suspected fraud and cases of financial institutions being drawn into litigation.

Read more about EB-5 and money laundering risks here, here, and here.