Identifier | Created | Classification | Origin |
---|---|---|---|
09GUANGZHOU667 | 2009-12-11 05:22:00 | UNCLASSIFIED | Consulate Guangzhou |
VZCZCXRO3544 RR RUEHCN RUEHGH RUEHVC DE RUEHGZ #0667/01 3450522 ZNR UUUUU ZZH R 110522Z DEC 09 ZFR ZFR ZFR FM AMCONSUL GUANGZHOU TO RUEHC/SECSTATE WASHDC 1156 INFO RUEHOO/CHINA POSTS COLLECTIVE 0371 RUEHBJ/AMEMBASSY BEIJING 0925 RUEHSH/AMCONSUL SHENYANG 0310 RUEHGH/AMCONSUL SHANGHAI 0300 RUEHCN/AMCONSUL CHENGDU 0301 RUEHHK/AMCONSUL HONG KONG 0368 RUEHUL/AMEMBASSY SEOUL 0037 RUEHIN/AIT TAIPEI 0274 RHMFIUU/DEPT OF HOMELAND SECURITY WASHINGTON DC 0056 RUEHC/DEPT OF LABOR WASHDC RUCPDOC/DEPT OF COMMERCE WASHDC RUEATRS/DEPT OF TREASURY WASH DC |
|
UNCLAS SECTION 01 OF 02 GUANGZHOU 000667
SIPDIS STATE FOR CA/VO, CA/FPP, CA/P, EAP/CM E.O. 12958: N/A TAGS: CVIS CMGT KFRD ECON EFIN CH SUBJECT: China Sees Explosive Growth in Immigrant Investor Visas GUANGZHOU 00000667 001.4 OF 002 ////////////ZFR ZFR ZFR ZFR ZFR ZFR ZFR ZFR/////////////////////// PLS ZFR ABOVE GUANGZHOU 667 IMI PLS ZFR ABOVE GUANGZHOU 667 AND BLANK ALL ASSOCIATED MCNS. TELEGRAM WILL BE RESENT UNDER NEW MRN/MCNS. SORRY FOR ANY INCONVENIENCE ////////////ZFR ZFR ZFR ZFR ZFR ZFR ZFR ZFR/////////////////////// GUANGZHOU 00000667 002.2 OF 002 5. (U) EB5 applications present numerous adjudication challenges. While U.S. law requires that investments be made with "capital obtained through lawful means", in practice it is difficult to make this determination for Chinese applicants. Cases routinely include hundreds of pages of Chinese financial documentation, which is frequently unreliable and, even if legitimate, is beyond the expertise of IV staff to evaluate in detail. Additionally, due to the strict mandates of China's Foreign Currency Exchange Act, transferring investment funds out of China is a difficult task. To stay within the confines of Chinese law, yet satisfy the "investment or actively in the process of investment" provision of 8 CFR 204.6(j)(2), applicants often create an offshore escrow account to secure the investment funds before transfer to the U.S. enterprise once immigrant status has been granted. Applicants commonly establish the escrow accounts in Hong Kong. To transfer the required $500,000 investment to Hong Kong, applicants often use multiple transactions involving different individuals, thus confusing the trail of wealth and making even very legitimate cases hard to evaluate. Separately, post has limited information on the progress of job creation targets for the regional programs in the U.S. Post has contacted USCIS to learn more on its adjudication criteria in order to develop a training program for visa officers. 6. (U) While post has not yet detected any cases of outright fraud relating to the investment funds used to qualify for EB5 status, there have been some questionable cases. Some applicants have little knowledge of the program in which they are investing; some are even unaware of the rate of return on the investment. This lack of knowledge makes it more difficult to judge applicants' bona fides. And, as always, the allure of a U.S. visa has attracted other kinds of fraud. In one case, an investor visa applicant appeared for interview with his wife and four children. When suspicions arose about their relationship and the consulate suggested the possibility of DNA testing, the applicant admitted that two of the children were not his own. In a separate case, post assisted the Internal Revenue Service in a tax evasion investigation of an EB5 recipient. As the program becomes more and more heavily marketed, it is likely that more such problems will be detected. COMMENT -------------------------- 7. (U) Guangzhou expects to continue to see an increasing number of EB5 investor immigrant applicants and will seek to develop better means to evaluate these cases through more direct communication with USCIS on criteria, updates in the program, and reports on any fraud trends which have been discovered by USCIS. Guangzhou officers and LES will also continue to monitor reports on the EB5 program in China, including complaints about problems involving EB5 visa brokers or agents. End Comment. GOLDBECK |