Why Use 3rd Party Compliance group?
In an effort to protect foreign investors, the US Senate in house bill H.R. 5992 is committed to passing and implementing a comprehensive “Integrity Bill” as part of the Immigration Reform Program. In addition to regulating how EB-5 securities are sold, the new EB-5 legislation will require Regional Centers to provide detailed evidence of the progress made toward the completion of their projects, each year. Independent (3rdParty) construction monitoring and auditing of the NCE will be a required part of both Direct and Regional Center projects.
The Integrity Bill is designed to provide 3rd party monitoring over the NCE (New Commercial Enterprise) to insure the investor capital moves from escrow account - to the project - as directed by the PPM and escrow agreement. The Integrity Bill also contains a requirement for 3rd party monitoring of the construction phase of the project to insure the investor capital is utilized within the construction process as required by the PPM and escrow agreement. A second concern within the construction process is the development and construction schedule. Since the timing of the US jobs creation is tied to the actual hiring of employees, a project that is delivered on time and within budget is very important to the foreign investor. Previous abuse of the investor capital - and projects that have run well over the programed time frame has created these changes within the EB-5 platform.
Two important goals of the foreign investor is first the “adjudication” of the I-829 document which provides proof that the investment met all requirements of the USCIS and return of their capital investment
3rd Party Compliance Group, LLC has the expertise and proven business processes to help Regional Centers and Direct Projects adapt to these new regulations seamlessly. Our primary goal is to protect the investor and the developer through a very transparent easy to implement oversite program.
3rd Party Compliance Group, LLC is NOT just another inspection or financial audit you have to go through. We are NOT there to impose additional layers of red tape and restriction or make your job more difficult. We are definitely NOT “bean counters” or “lawyers”. Instead, we are experienced developers just like yourselves with “real world experience” in all phases of the development cycle. 3rd Party Compliance Group, LLC is built upon becoming an integral part of the development team. We’re there to be problem solvers with you, (all projects have them) to help make certain that EB-5 governmental requirements don’t slow your project or the flow of EB-5 funds you need to meet the financial stack commitments.
We are totally independent and our clients are BOTH you and your EB-5 investors. Our job is to manage risk for both of you and ANYTHING that negatively impacts your project, negatively impacts the investors and you as the project owner, so we are always on the same side of the table when it comes to solving any issue that derails your project plan.
EB-5 investors are sophisticated, wealthy foreigners who are adept at assessing project risk. We believe that supporting your project with 3rd Party Compliance Group services will make your project stand out in the myriad of possible choices each EB-5 investor has presented to them as a project with minimal risk, maximum transparency, and the greatest chance of helping them achieve their goal of obtaining a green card here in the US.
Your success = Our Happy Clients!
2625 N. Meridian Street
Indianapolis, IN 46208
What Can 3rd Party Compliance Group Do For Your Project?
Understanding YOUR project and its unique construction and financial requirements is integral to 3rd Party Compliance Group’s ability to provide both you and the investors the best service. We use a project integration process we referr to as “Sync Up” which links everything the investor and USCIS needs to know with your project development strategy.
Once we completely understand the project, we will jointly chart a compliance program that has very realistic checkpoints based on YOUR development program. Then we work to operate in the background as much as possible, doing the tasks required for BOTH EB-5 construction compliance AND whatever is necessary to manage the flow of EB-5 funds into the project based on the funding plan.
Working side by side with NES Financial, the Construction Compliance Manager reviews all construction draws and documents the flow of EB-5 capital and construction progress into the project. The Construction Compliance Manager reports directly to the owners, the Regional Center, and the EB-5 investors through our “workflow software” program.
A series of web based cameras are placed on the project site to document progress and to allow foreign investors to watch their investment through the construction process. Project investors and the Regional Center are provided password protected access to both the workflow log and the camera system. Investors and the Regional Center (and related financial institutions) each have access to a project specific “dashboard” that tracks project progress, cash disbursements, and any related project specific critical success factors (leasing efforts, municipal commitments, tax or labor incentives, etc.) in highly visual and easy to read set of graphics.
While it might SEEM as though this Construction Compliance is an additional “layer” in reality, under the new legislation, it is just an independent company doing the tasks that you would have to do internally anyway while reporting to the regional center and EB-5 investors.
NCE Management / Oversight
The USCIS requires a 3rd Party Compliance company (per the recent Integrity Act) to act as or oversee the Managing Member of the New Commercial Enterprise (NCE). This role is managing the USCIS requirements for immigration compliance for the period the EB-5 investors are involved in the project and in some cases, assuming responsibility to operate the NCE with all the management and financial requirements that entails.
During this period, 3rd Party Compliance Group, LLC assigns one specific project monitor/advisor to each project. This experienced business consultant is specifically scheduled to review the project at EACH project financial milestone and to maintain and update all records within the workflow software and dashboard on a daily basis. This includes logging time record pictures of the project, notes of conversations with developer, GC and key subcontractors as well as progress against all additional non-construction critical success factors. This business consultant is also responsible to answer investor and regional center questions regarding the project milestones and financial absorption. If the project “drifts” this business consultant is tasked to PROACTIVELY assemble key team members and develop a project responsible plan (approved by all project leadership) to get the project back on track and within the “safe zone” on the dashboard. The account transparency requirement calls for 3rd Party Compliance to insure the transfer of funds is in compliance with the guidelines of H.R. 5992.
Navigating EB-5 waters can be very challenging and time consuming. But assembling the right team of experts - including attorneys, analysis, researchers, economists, and business plan writers - can make the difference for project developers, business owners, franchisors and even the investors. As an independent oversight company, 3rd Party Compliance Group has experience with experts in all these disciplines and we can refer you to qualified resources that can effectively support your project as needed.
The NES Platform
We utilize NES Financial, in addition to our software program, to administer the NCE account transparency requirement. As raising capital through EB-5 becomes more mainstream, subject to increased scrutiny from multiple sectors, the pressure to EB-5 issuers to build operational excellence throughout the entire life cycle of an EB-5 project is significantly increasing. Fund accounting is a cornerstone for achieving this goal. The NES Financial EB-5 Fund Accounting Solution provides an efficient, scalable, and fully compliant third-party solution that enable issuers to successfully compete for international investor capital, while addressing evolving due diligence requirements that prove critical to a project’s success.
The NES Financial Intelligent EB-5 Fund Accounting Solution simplifies back-office accounting for the EB-5 fund, including general ledger maintenance, quarterly and annual financial statement, bank and custodian reconciliation, distributions and receipts.
Combining 3rd Party Compliance Group and the NES Platform for accounting is a best practice to help ensure accuracy, improve operational efficiency, and allow you to focus on meeting your project’s needs.
NES Financial provides end-to-end solutions for every stage of the EB-5 life cycle, specifically designed to help meet USCIS guidelines, SEC requirements, and simplify AML, KYC, and FATCA compliance. With regulatory scrutiny poised to increase, oversight and tracking of all allocations and distributions helps ensure everyone in the development cycle from investor to developer is prepared for additional compliance requirements.
Use the form below to contact us regarding your EB-5 Compliance enquiry. Let us know the size and scope of your project and the best way and time to reach you to discuss your unique objectives and project timing.