Regional Center Audits Under the RIA

When I was asked to speak on a panel at the annual IIUSA EB-5 industry conference this past spring I was thrilled.  When they assigned the topic, “RIA Regional Center Audits”… not so much.

The 2022 revisions to the EB-5 regional center program (the RIA) require USCIS to audit all regional centers at least once every five years, but no one had yet been audited, so it would be very hard to speak with any expertise on the subject.  Well, that changed when a few days later I received an email that indicated we would be one of the first programs to be audited.  I am not sure if that was because American Life starts with the letter “A” or if it was because, being founded in 1996, we are the oldest operating regional center program.

The audit is to ensure compliance with the EB-5 program, securities regulations, and to ensure proper management of investor’s capital funds.  The audit began with USCIS providing us an initial list of required documents they wished to review, and also an “intake conference” where the auditors and their supervisor discussed the audit procedure and how it would be completed.  They also scheduled a physical visit to our offices which would take place only a few weeks later.    It should be noted that there was a very short time frame offered to respond to their requests.  It was clear that a regional center program needed to be prepared ahead of time for what could be a sudden notice of audit.   If there was a main point to be shared with the industry at the upcoming conference, this was it!

A few weeks after our submission of the requested documents the USCIS audit team arrived, including an expert in financial accounting, an economist, an adjudicator, and a supervisor who joined online.  Over the course of the day, they explored our accounting and control processes, data and information security, and our internal procedures to assure we were compliant and following “best practices”.  They selected “random” investors and transactions to audit and follow the movement of capital.  They looked at our data security, staff roles, even our file structures.

A few weeks after the onsite visit, we completed an “exit call” with the audit supervisor.  A letter arrived a few days later indicating the audit was complete and no other action was necessary.  We realized we were one of the first to complete this process and I could share what I had learned just a few weeks later at the IIUSA EB-5 industry gathering.

The USCIS audits required under the RIA are another way to assure investors of an EB-5 program’s integrity.  American Life is proud to be able to share with our existing and future investors that we have completed this in-depth audit and continue to lead the industry in investor trust for almost 30 years.