Source of Funds Policy Update – SC188B – Significant Investor Visa Policy Clarifications

The Business Innovation and Investment (Provisional) visa (subclass 188) – Significant Investor (SIV) stream, is directed at people who are prepared to invest at least 5 million (Australian dollars) towards conducting business and investment activity in Australia. The money going towards the investment must be free of debt and must be lawfully obtained.

 

What is the Significant Investor Visa (SIV)?

This visa offers a four-year pathway to permanent residency, directed towards entrepreneurial and individuals willing to make investments in areas of the Australian economy.

The Department are ensuring the SIV program is delivered correctly and any emerging issues are addressed before they can develop into threatening the reputation and the results of a financial institution. This outcome can arise when the rules enforced under the law are not met.

The funds for the Complying Significant Investment (CSI) from the use of gambling proceeds and gifts from unrelated parties, present a risk to the SIV program. The aim for this updated advice, is to help the visa processing officers make their decision more sufficiently and provide more clarity to the stakeholders.

 

Funds sourced from Gambling

When funds are obtained from gambling, the rules enforced under the law are not met and will not be accepted. This outcome is due to the following:

  • The high incidence of money laundering associated with gambling activity;
  • The uncertainty on what the applicants net gain or loss from such activities; and
  • The problem attained from sourcing the funds received from gambling wins.

The money won as a form of gambling can be obtained from casino games and odds betting on sports, greyhound and horse racing.

 

Funds sourced from Gifting

Applicants may be eligible to nominate funds and/or assets which have been gifted to them for the CSI.

In order to be considered lawfully for such gifts, the following is taken into account:

  • Decision makers are needed to make an assessment based on a person’s honesty and sincerity of intention of the gifting arrangement. Any doubts that arise as to the gifting arrangement, documents will be required to be provided as proof (e.g. formal gift deed). If such doubts arise, decision makers can refuse the application.
  • The relationship between the person gifting the funds/assets, is not of a parent/child relationship, it will not be accepted, and their will be no obligation to pay back.
  • Decision makers must be pleased with the lawfulness of the gifted funds and have authority to ask relevant questions.
  • The person who gifts the funds and/or assets must have acquired ownership lawfully.
  • The person gifting any loans borrowed from a financial institution must own the security over which the loan is pledged.

Does this affect current applications?

The updated advice may be applicable to cases on hand and sharpens the focus on an existing policy position.

 

Further information

If you would like any further information regarding the updates contained in this article, or with any immigration law matter in general please contact our office.