Proving where investment money came from is one of the most critical parts of any successful E-2 visa application, and yet applicants often underestimate how detailed consular officers and immigration officials can be. This guide explains what counts as a lawful source of funds, what documents typically satisfy the requirement, and how to present a clear, credible money trail for an E-2 Investor Visa application.
Why proof of a lawful source of funds matters for the E-2 visa
The E-2 visa USA is granted to investors from treaty countries who place a substantial amount of capital into a U.S. business. Beyond showing the investment is at risk and will generate employment, the applicant must show that the investment funds were obtained through legal means.
Consular officers and U.S. immigration authorities review funds closely to prevent fraud, tax evasion, and money laundering. Failing to document the lawful origin of funds can delay a case, lead to a request for evidence (RFE), or mean denial—even when the business plan and investment itself are solid.
Understanding the standard: what “lawful source” really means
Lawful source of funds means demonstrable evidence that money came from legitimate activities or transactions that are legal in the country of origin and in the United States. The focus is less on the specific label of the source and more on credible documentary proof that ties funds to legal transactions, taxation, or corporate records.
There is no single form of proof required; instead adjudicators assess whether the totality of documents tells a coherent, verifiable story. It is wise to assume that officials will scrutinize unusual transactions, large cash movements, offshore transfers, and links to politically exposed persons.
Common acceptable sources and the documentation that supports them
Below are commonly accepted origins of investment funds, and the specific evidence applicants should provide to build a robust money trail.
Personal savings or salary
Evidence should show how savings accumulated over time from lawful employment or business activity.
- Bank statements covering the accumulation period, ideally showing steady deposits and balances.
- Pay stubs, employment contracts, and employer letters describing salary and employment dates.
- Tax returns and wage reports demonstrating declared income (link: IRS).
Sale of a property, business, or other asset
Provide documents showing ownership, the sale process, and receipt of proceeds.
- Purchase agreement and closing statement for the asset sold.
- Title transfer records and bank records showing receipt of sale proceeds.
- Capital gains tax filings or receipts to show the transaction was reported to tax authorities.
Inheritance
Inheritance is accepted if it is supported by estate documentation.
- Death certificate and original will or probate/estate letters.
- Court orders distributing assets, bank statements showing transfer of funds, and tax documents related to the estate.
Gifts from family or friends
For gifts, the donor must be identified and able to show the legality of funds.
- A written gift affidavit from the donor that includes relationship, amount, and confirmation that repayment is not expected.
- Donor’s bank statements, tax returns, and identity documents to substantiate origin of the gifted funds.
Loans
Loans are acceptable but must be commercial in nature, documented, and fully traceable.
- Signed loan agreement with interest rate, repayment terms, and lender/borrower identification.
- Evidence that the lender had the funds (bank statements) and that the loan was used for the specific investment (wire transfers, receipts).
- Loans from family should be treated like gifts with loan terms clearly documented to avoid questions about personal ties.
Corporate funds or capital contributions
When investing through a corporate entity, present clear corporate records.
- Articles of incorporation, shareholder agreements, and corporate resolutions authorizing the investment.
- Audited financial statements, ledgers, and minutes showing distribution of funds to the U.S. entity.
- Bank transfers from corporate accounts, invoices for asset purchases, and accounting entries.
Proceeds from securities, IPOs, or business exits
Show broker statements, sale contracts, and transfer records.
- Brokerage account statements showing sale of shares and subsequent transfer of proceeds to bank accounts.
- Stock purchase/sale agreements, escrow documents, and capital gains tax filings.
- SEC filings or public notices for larger exits (link: U.S. Securities and Exchange Commission).
Cryptocurrency
Cryptocurrency can be used as long as a verifiable chain of custody and legal source are documented—a common area of heightened scrutiny.
- Exchange records showing purchase history and KYC (know-your-customer) verification.
- Wallet transaction logs, blockchain transaction IDs, and records of conversion to fiat currency with bank transfers.
- Expert statements or forensic reports tying wallet addresses to lawful transactions where necessary.
How to assemble a credible money trail
Applicants should construct a chronological, annotated file that links each step from the original source to the final investment. The goal is to make the path easy to verify for an officer.
- Start at the source: Show where the funds originated—employer, buyer, deceased estate, brokerage, etc.
- Show transfers: Provide bank/wire records demonstrating each movement of funds, with dates and counterparties.
- Document conversion: If funds moved across currencies or borders, include currency exchange receipts and foreign bank statements.
- Connect to the investment: Show how the funds were used to purchase assets, pay deposits, or fund operations (receipts, purchase agreements, capital account entries).
- Organize an index: Provide a table of contents or annotated chronology so officials can follow the trail quickly.
Addressing high-risk scenarios and red flags
Certain situations attract extra scrutiny and should be proactively explained with strong documentation.
- Large cash deposits: Provide credible explanations and receipts showing how cash was accumulated and deposited.
- Unexplained wealth spikes: Reconcile sudden increases with sale documents, bonuses, or other evidence.
- Offshore accounts: Include certified translations, offshore bank statements, and compliant tax filings showing reporting of funds. Be mindful of international tax compliance obligations.
- Politically exposed persons (PEPs): Expect deeper scrutiny—disclose relationships early and provide clear legal sources and compliance records.
For more background on anti-money laundering guidelines — and why this matters — see FinCEN.
Common pitfalls and how to avoid them
Many E-2 applicants falter not because they lack lawful funds, but because their supporting documentation is incomplete, inconsistent, or poorly organized.
- Lack of corroborating documents: Don’t rely on a single statement. Combine contracts, bank records, tax filings, and third-party confirmations.
- Poorly explained transfers: If funds pass through multiple accounts, explain each transfer with date-stamped records and purpose statements.
- Missing translations or notarization: Provide certified translations for non-English documents and notarize affidavits where possible.
- Late evidence submission: Address potential issues before the interview or application submission to reduce RFEs.
Practical steps, checklist, and timelines
Building a strong lawful-source package takes time. Start early and follow a checklist to ensure nothing is missed.
- Collect personal IDs, tax returns, and bank statements covering the period when funds accumulated.
- Secure original contracts: sale agreements, probate documents, loan agreements, corporate minutes.
- Gather third-party corroboration: employer letters, buyer/seller confirmations, trustee letters.
- Translate and notarize non-English documents.
- Create an annotated chronology linking documents to each step of the funds’ journey.
- Prepare donor affidavits or loan agreements signed and dated before funds were transferred where possible.
- Allow time for forensic accounting or expert reports if funds are complex (e.g., large crypto holdings or cross-border corporate distributions).
Depending on complexity, compiling and validating these records can take weeks to months. Starting well before a consular appointment or USCIS filing is essential.
What to expect at the consular interview or RFE stage
Officers will ask focused questions about the origin and movement of funds, and they will compare verbal explanations to the documentary record. Confidence, consistency, and an organized folder make a strong impression.
- Bring originals and clear copies of all documents, plus an indexed binder with a table of contents.
- If an officer requests additional evidence (RFE), respond promptly with the requested documents and a covering letter that ties the response to the specific RFE points.
- When presenting complex chains (e.g., multiple transfers across countries), include a short, written narrative or timeline that summarizes the flow in plain language.
When to consult an expert
Complex funding situations—large cross-border transactions, cryptocurrency-heavy portfolios, business exits involving multiple shareholders, or loans from third parties—often benefit from a lawyer and a CPA or forensic accountant. Professionals can:
- Help reconstruct a clear money trail and prepare sworn statements or expert reports.
- Draft or review loan agreements, gift affidavits, and corporate resolutions to ensure they meet commercial and immigration expectations.
- Coordinate with banks and accountants to obtain properly authenticated documents.
An experienced E-2 attorney will anticipate consular questions and frame evidence so it addresses common officer concerns directly.
Practical examples (hypothetical) that illustrate good documentation
Example 1: She sold a family apartment in her home country and used proceeds to fund a restaurant in the U.S. Her submission included the original sales contract, the notarized closing statement showing buyer and seller signatures, the foreign bank statement showing the incoming sale proceeds, a certified translation of the closing documents, proof of tax payment on the sale, and the wire transfer records to the U.S. business account.
Example 2: He converted a long-held crypto position into USD. He produced exchange purchase records showing the initial crypto acquisition, the exchange’s KYC documents, transaction logs and blockchain IDs for transfers between wallets, liquidation records on an exchange, and bank account records showing the USD deposit—tied to business investment transfers. He also provided a short expert memo explaining the chain of custody.
Questions applicants should ask themselves before filing
These simple questions help reveal gaps before an application meets an officer:
- Can each large deposit be linked to a verifiable transaction or income source?
- Are there contemporaneous documents (contracts, receipts, tax filings) to corroborate the story?
- Have all non-English documents been translated and, where appropriate, notarized?
- Would a neutral third party (bank, accountant) be able to verify each step quickly?
Preparing a clear, verifiable record of the lawful source of investment funds reduces stress, shortens processing times, and increases the chance of approval. If questions remain about how best to document a particular source—especially in complex or novel situations—seeking experienced legal and accounting advice early will save time and protect the case.
Please Note: This blog is intended solely for informational purposes and should not be regarded as legal advice. As always, it is advisable to consult with an experienced immigration attorney for personalized guidance based on your specific circumstances.