Compliance and Best Practices in EB-5
In 2022, the EB-5 Immigrant Investor Program entered a new era. With the passage of the EB-5 Reform and Integrity Act (RIA), Congress introduced the most sweeping updates to the program in its three-decade history, redefining how EB-5 offerings are structured, marketed, and monitored.
The result is a stronger, more transparent program that protects investors, enhances accountability, and raises the compliance bar across the industry.
In Part 3 of CanAm’s Compliance and Best Practices in EB-5 series, we examine how the RIA has reshaped EB-5, and why these reforms have become a competitive advantage for experienced, compliance-driven regional centers like CanAm.
A Landmark Reform for the EB-5 Program
Before 2022, EB-5 oversight was fragmented across agencies and jurisdictions. The RIA changed that by introducing a unified framework that mandates disclosure, integrity, and operational transparency throughout the EB-5 investment lifecycle.
As Pete Calabrese, CEO of CanAm Investor Services, explained during a recent webinar:
“The RIA didn’t just modernize EB-5, it professionalized it. It gave the program the compliance infrastructure it always needed and formalized many of the best practices that reputable regional centers were already following.”
Key EB-5 Compliance Improvements Under the RIA
The RIA introduced a series of measures designed to ensure that EB-5 investments are managed and marketed with the same rigor expected in other regulated financial markets.
1. Transparency of Fees and Conflicts of Interest
Regional centers must now disclose all fees, commissions, and compensation arrangements, including payments to agents, consultants, and affiliates. This allows investors to understand exactly where their money goes and what costs are embedded in their investment.
2. Disclosure of Counterparties and Relationships
All parties involved in an EB-5 offering, from project developers to migration agents, must be clearly identified. This eliminates hidden intermediaries and ensures accountability for each entity’s role.
3. Independent Fund Administration
EB-5 projects are now required to use third-party fund administrators or independent annual audits to verify that investor funds are properly deployed in accordance with offering documents.
4. Enhanced Oversight of EB-5 Marketing Practices
The RIA brought new clarity to U.S. versus offshore solicitation rules, distinguishing between offerings made under Regulation D (domestic) and Regulation S (offshore). This ensures that marketing activities, particularly those targeting parents abroad or students already in the U.S., are conducted lawfully and transparently.
5. Ongoing Reporting and Recordkeeping Requirements
Regional centers must submit annual statements to USCIS detailing job creation, use of funds, and investor status, providing a continuous compliance record throughout the investment period.
How the RIA Raises EB-5 Compliance Standards
These reforms have raised expectations across the EB-5 ecosystem. Regional centers are now responsible for:
- Implementing written compliance and supervisory procedures
- Training employees and agents on proper marketing and disclosure standards
- Maintaining documentation that demonstrates compliance with SEC and USCIS rules
- Proactively identifying and mitigating potential conflicts of interest
For investors, this means greater confidence in the integrity of the process, from the first brochure to the final repayment.
“The RIA gave structure to what responsible EB-5 firms were already doing,” Calabrese noted. “For firms like CanAm, it validated a decades-long commitment to compliance, transparency, and investor protection.”
U.S. vs. Offshore EB-5 Marketing: Compliance in Practice
The RIA also addressed one of EB-5’s most complex compliance challenges: how to market offerings both domestically and abroad without violating securities laws.
Regulation D (U.S.) restricts offers to qualified investors within the United States and prohibits general solicitation.
Regulation S (Offshore) governs offerings outside the U.S. to non-U.S. persons, allowing broader marketing flexibility.
This distinction is critical for international EB-5 campaigns. Broker-dealers must ensure that marketing activities align with the correct exemption, particularly when families have members both in the U.S. (such as students on F-1 visas) and abroad.
That’s why working with a FINRA-registered broker-dealer is so important: it ensures that every communication, presentation, and investment process complies with both SEC and USCIS frameworks.
Why These RIA Compliance Guardrails Benefit EB-5 Investors
Although compliance requirements have become more demanding, they serve a single purpose: to protect investors and strengthen trust in EB-5.
- Greater transparency reduces the risk of misinformation or hidden fees
- Stronger fund controls prevent misuse or misallocation of capital
- Standardized reporting and oversight ensure accountability across every stakeholder
“The RIA is not a burden, it’s a safeguard,” Calabrese emphasized. “It ensures that investors can rely on a system designed to protect their interests and uphold the credibility of the EB-5 program.”
The Takeaway: Integrity Is the Best EB-5 Investment
The EB-5 Reform and Integrity Act transformed the program’s foundation, and reinforced why working with experienced, compliance-focused partners is essential.
At CanAm, compliance isn’t a checklist; it’s part of our DNA. From independent fund administration to transparent communication and ongoing investor reporting, we view these obligations as the framework for long-term trust and success.
As the EB-5 industry continues to evolve, one thing remains constant: integrity is the best investment.
Coming Next in the Series
Part 4 – Best Practices and Investor Takeaways: We’ll conclude the series with a look at the practical steps investors should expect from a compliant EB-5 broker-dealer, including due diligence standards, risk awareness, and how transparency builds long-term confidence in every investment relationship.
About the Webinar Speakers
Peter Calabrese, CEO, CanAm Enterprises
Peter Calabrese serves as CEO of CanAm Investor Services, the FINRA-registered broker-dealer affiliate of CanAm Enterprises. He has been a leading voice in EB-5 investment immigration and oversees CanAm’s investor-facing operations and business development.
Mike Xenick has over 20 years of investment banking experience raising debt and equity capital for middle-market companies. At InvestAmerica Capital Advisors, he leads the firm’s EB-5 Advisory Services and Support practice — a division he founded in 2010 and spun out from LCG Capital Advisors, where he was Managing Partner of a FINRA-registered boutique investment bank in Tampa, Florida. Earlier in his career, he held senior roles at Atlantic American Capital Advisors and Communications Equity Associates, closing numerous M&A, private placement, and corporate finance transactions across industries including technology, media, and specialty finance. Before investment banking, he spent four years as a senior auditor at Ernst & Young. He holds Bachelor’s and Master’s Degrees in Accounting from the University of Florida, is a CPA, and holds FINRA Series 7, 79, 24, and 63 registrations. An Iron-Man triathlete and VFR-certified private pilot, he is married with three children.
