Do I Need an OFAC License for My EB-5 Investment?

If you’re an investor interested in the EB-5 Immigrant Investor Program, you may wonder whether you need to obtain an OFAC license before proceeding. The answer depends on your nationality and whether your country is under U.S. sanctions. The Office of Foreign Assets Control (OFAC) administers and enforces U.S. economic sanctions, which can affect investors from certain countries.

In this blog post, we’ll explore which nationalities require an OFAC license for EB-5 investments and how to navigate this aspect of the immigration process.

1. What Is OFAC and Why Does It Matter for EB-5 Investors?

OFAC, a division of the U.S. Department of the Treasury, enforces sanctions against countries, organizations, and individuals deemed to pose threats to U.S. national security or foreign policy. If you are from a country subject to U.S. sanctions, you may need to obtain an OFAC license to legally participate in the EB-5 program.

2. Countries Affected by OFAC Sanctions

The U.S. currently has sanctions against several countries. If you are a citizen or resident of a sanctioned country, such as Iran, North Korea, Syria, Cuba, Venezuela, or Russia, you will likely need to apply for an OFAC license before making your EB-5 investment.

3. Applying for an OFAC License

Obtaining an OFAC license can be a detailed process. You must provide thorough documentation to demonstrate that your investment funds are not tied to any prohibited entities or individuals under U.S. sanctions. This includes:

• Proof of legal source of funds

• Documentation of business affiliations (if applicable)

• Detailed investment plans

4. Investors from Non-Sanctioned Countries

If your country is not subject to U.S. sanctions, you generally do not need to worry about obtaining an OFAC license. However, you will still need to ensure that your EB-5 investment complies with other U.S. regulations, such as proving the lawful source of funds.

Understanding whether you need an OFAC license for your EB-5 investment is crucial, especially if you are from a country under U.S. sanctions. By navigating the process correctly and seeking professional guidance, you can ensure a smooth path to your U.S. residency.