Bank statements are among the most important documents in an EB-5 case because they do more than show that an investor earned or received the relevant investment funds. For EB-5 purposes, USCIS is not only interested in whether funds were lawfully obtained, but also in the path those funds took to reach the EB-5 project. Bank statements provide this by showing where the money was held and exactly how it moved over time, creating a clear, chronological trail of financial activity. This can include a variety of situations, such as the deposit and accumulation of salary over several years, trail of funds used to purchase a home that was later sold to finance an EB-5 investment, the receipt of gift funds from family members, or transfers of profits or dividends from a business account. While sources of funds vary from case to case, bank statements serve the same essential purpose in every situation: they provide concrete, chronological evidence that ties these financial activities together and demonstrates the flow of funds to the investment.
Challenges When Bank Statements Are Missing
Without this documentation, it can be challenging for USCIS to verify the flow of funds, even if other records show that the investor had sufficient income. But what happens when the relevant financial activity occurred decades ago, the investor no longer has the records, or the bank cannot provide statements due to its retention policies?
Investors often ask whether tax returns and W-2 forms are sufficient for an EB-5 case. The short answer is that they are not sufficient on their own. While complete tax returns and W-2s are important and will be included as part of the overall documentation, they do not provide the same level of detail as bank statements. A tax return shows total income earned in a given year, deductions, and taxes paid, while a W-2 reflects wages received from an employer and the taxes withheld. These documents help establish that income was earned lawfully, but they do not show which accounts the funds were deposited into, how the money was accumulated or invested, or the flow of its transfer toward the EB-5 investment. This is why bank statements remain essential.
USCIS Standard: Preponderance of the Evidence
EB-5 filings are adjudicated under a “preponderance of the evidence” standard. This means USCIS expects it to be more likely than not that the funds were lawfully obtained and traceable. Investors do not need a perfect record, but they must provide credible evidence of both the source and the path of funds. Missing bank statements may not automatically prevent successful adjudication of an EB-5 application, but any gaps must be explained clearly and supported with alternative documentation wherever possible.
When bank statements are unavailable due to the bank’s retention policies, it is important to cite the specific policy in the file. For instance, Bank of America generally keeps statements for seven years, while Chase Bank retains them for five, and these retention periods are published on the bank’s website. If an investor cannot obtain older statements, including the retention policy in the submission, helps USCIS understand why the records are unavailable. In addition, federal law, including the Bank Secrecy Act, imposes privacy and recordkeeping requirements that limit how long banks can maintain certain records. For example, under the Bank Secrecy Act, banks are generally required to retain records of certain transactions, such as cash and wire transfers, for five years.
Using Alternative Evidence to Fill the Gaps
Investors may also request a letter from the relevant bank confirming the account’s opening and closing dates (if applicable), which can help demonstrate that the account was active during the period relevant to the source of funds (e.g., the initial purchase of a property). Letters from accountants or financial advisors familiar with the relevant financial activity can also help verify practices such as savings accumulation, property purchases and sales, stock transactions, or the source and buildup of gift funds. When combined with other supporting documentation, these letters can help clarify the relevant financial activity and provide USCIS with the most complete explanation available of the investor’s source of funds when essential bank statements are unavailable.
The key is to present a clear and credible story using primary evidence whenever it is available, showing how the funds were earned, what account they were held, and how they ultimately reached the EB-5 project. If some bank statements are not available, it is important to close the gaps as much as possible and explain why certain records cannot be provided. By combining careful documentation, transparent explanations, and secondary evidence to fill in missing information, investors can meet USCIS’s requirements and obtain case approval, even when some bank statements are missing.
For questions about your source of funds eligibility, contact Jacqueline Treviño at jtrevino@psbplaw.com.