Legal Considerations and Obligations

Entering the Gold Card visa program comes with several legal considerations and responsibilities, both for the applicants and for the program’s implementation. Below are the key points to understand:

• Legislative Approval and Changes: The Gold Card visa is not yet an enacted law – it’s a proposal that requires new legislation. Congress must pass enabling legislation to create this visa category and set its terms​. Until that happens, the program details are subject to change. Investors should be aware that political and legal processes could affect the program’s launch date and requirements. (Henley & Partners, an investment migration firm, noted that new legislation would be needed and that it’s “unlikely to be enacted in the short term”​.) It will be important to monitor news on any bill or policy announcement that formally establishes the Gold Card visa.
• Compliance with U.S. Immigration Laws: Once an investor becomes a U.S. conditional or permanent resident through the Gold Card, they are subject to all U.S. immigration laws and regulations governing that status. They must maintain their resident status – for example, they should not spend extended periods outside the U.S. without proper re-entry permits, or they risk being deemed to have abandoned residency. They must also timely file any required petitions (such as a condition removal petition, if the program uses conditional residency).
• Financial Obligation – Investment at Risk: Legally, the applicant must follow through with the full $5 million investment. There will likely be contracts or escrow agreements making clear that if the visa is approved, the money is taken by the U.S. government or invested per program rules. The investor cannot reclaim these funds simply because they changed their mind; backing out would mean losing eligibility (and possibly forfeiting any funds already paid). This is a binding economic commitment.
• Anti-Money Laundering (AML) and Source of Funds: U.S. authorities will apply strict AML standards to this program, as large sums are involved. Applicants will need to prove the money is clean – expect to provide extensive documentation of how the $5M was earned. Any hint of criminal activity (fraud, corruption, tax evasion, etc.) tied to the funds can result in denial. Providing false information or fraudulent documents is a serious offense, leading to denial and potentially being barred from the U.S. for misrepresentation. Investors have an obligation to be truthful and transparent about their financial background.
• Security and Background Checks: Each applicant will go through FBI background checks, security screenings, and potentially enhanced vetting due to the profile of this program. The U.S. will likely coordinate with international agencies to verify that applicants are not on sanctions lists, are not involved in terrorism or espionage, and are not a threat. (One notable discussion has been whether individuals like sanctioned Russian oligarchs would be allowed; Trump’s comments imply a lenient stance​, but legal reality might bar certain individuals under existing sanctions laws. This tension will need to be resolved in the program rules.)
• Taxation and Financial Reporting: A unique feature floated for Gold Card holders is the exemption from U.S. taxation on foreign income​. If this is enacted, it would likely require a carve-out in U.S. tax law for participants. Under current law, any U.S. permanent resident is generally treated as a tax resident and must report worldwide income. Gold Card investors should consult with tax advisors because even with an exemption, there may be reporting requirements (for example, disclosing foreign bank accounts via FBAR if holding over $10,000, etc.) and they will definitely be taxed on any U.S.-source income. Should they later become U.S. citizens, the standard rules of worldwide taxation would apply unless the law continues some special status for them during the residence period. Keeping compliant with any special tax provisions and understanding the obligations (like possibly having to file an annual statement to claim the exemption for foreign income) will be crucial.
• Residence Requirements for Citizenship: Gaining the Green Card via Gold Card is just the first step; to get citizenship, the investor must fulfill residency requirements. Legally, they need to reside in the U.S. at least half of the time (30 out of 60 months) before applying for naturalization​. If an investor obtains the Green Card but then spends most of their time abroad, they could jeopardize both their eventual citizenship eligibility and even the Green Card itself. Therefore, an obligation comes in the form of making the U.S. a primary residence for the required period. This might be a change of lifestyle for some global investors and should be planned for (e.g., maintaining a home in the U.S., integrating family into U.S. schools, etc.).
• Good Moral Character and Law Abidance: U.S. immigration law requires that those seeking citizenship be of “good moral character” in the years leading up to naturalization. This means Gold Card holders should avoid any criminal conduct, tax evasion, or other issues during their residency. Serious criminal issues can not only derail citizenship but can also lead to loss of Green Card and deportation. In essence, investors must obey U.S. laws like any other resident. Minor offenses might not affect status, but anything significant (fraud, felonies, etc.) could result in disqualification.
• Program Integrity and Future Changes: The Gold Card program is introduced partly because of criticisms that EB-5 was “full of nonsense, make believe and fraud”​. To avoid similar problems, the new program will likely have strong integrity measures (audits of the funds, oversight of whoever manages the funds, etc.). Investors should be prepared for possible reporting obligations to program administrators – for instance, verifying after a certain time that they are complying with any terms. Also, while unlikely, if the program were to be discontinued in the future, the law would need to address how existing Gold Card residents are handled (usually they would be grandfathered in, meaning current status would not be taken away arbitrarily). According to experts, existing EB-5 investors are expected to be protected and grandfathered under the old rules​, and similarly, any Gold Card investors would likely be protected even if laws change later.
• Ethical and Social Considerations: There is also a broader obligation in terms of public perception. Investor immigrants should be mindful of local laws and community integration. The Gold Card visa, by design, grants status to the wealthy, which can attract attention. Being good residents – contributing to communities, charitable involvement, or at least not causing social issues – while not a formal legal requirement, can be important for the program’s reputation and the individual’s smooth experience in the U.S. (For example, avoiding any high-profile legal disputes or behaviors that could draw regulatory scrutiny).

While the Gold Card offers a straightforward path to U.S. status, it comes with serious commitments: a binding financial contribution, adherence to U.S. laws, and meeting residency and moral conduct standards. Potential applicants must weigh these obligations and ensure they are prepared to fulfill them. It’s advisable to consult both immigration attorneys and financial/tax experts before and during the process to remain compliant with all legal requirements of the program.