Immigration Compliance Checklist for Financial Services Companies

Financial services companies across banking, private equity, hedge funds, fintech, and insurance rely heavily on H-1B, L-1, O-1, and TN visa holders for quantitative analysts, software engineers, compliance officers, portfolio managers, and other critical roles. In 2026, the enforcement environment has changed dramatically. ICE worksite audits have surged, the Department of Labor launched proactive H-1B investigations through Project Firewall, and a new wage-weighted H-1B lottery system took effect in February 2026. This checklist breaks down the obligations and deadlines that apply to employers and employees in the financial services sector.

I-9 Compliance and E-Verify: The Foundation of Every Immigration Program

Current Form and Completion Rules

Every U.S. employer must complete Form I-9 for each new hire to verify identity and work authorization. The current edition (01/20/2025) is valid through May 31, 2027. Employers using electronic I-9 systems with the prior 08/01/2023 edition must update to the new expiration date by July 31, 2026.

Completion deadlines that apply to financial services HR teams:

• Section 1: The employee completes this on or before the first day of employment (for pay)
• Section 2: The employer examines original documents and completes this section within three business days of the employee's start date
• Reverification: Required before work authorization documents expire. Reverification is never required for U.S. passports, U.S. passport cards, or Permanent Resident Cards, as their holders have permanent employment authorization regardless of document expiration

For E-Verify enrolled employers in good standing, USCIS permits remote document examination as a permanent alternative procedure. This requires a live video interaction where the employee presents document copies (front and back), and the employer checks the "alternative procedure" box in Section 2. Employers may choose to use the alternative procedure only for remote employees while examining documents in person for onsite staff, as one permissible approach, provided the practice is applied consistently and in a non-discriminatory manner. Non-E-Verify employers must examine original documents in person.

Penalty Structure (Most Recently Published Adjustment: January 2, 2025)

Penalties for I-9 paperwork errors or omissions range from $288 to $2,861 per form. Penalties for knowingly hiring or continuing to employ unauthorized workers are $716 to $5,724 per worker for a first offense, $5,724 to $14,308 per worker for a second offense, and $8,586 to $28,619 per worker for a third or subsequent offense.

A financial services firm with 200 defective I-9s faces potential six-figure exposure from a single ICE inspection. Employers receive 10 business days to correct certain technical errors before they become substantive violations. Note: effective March 16, 2026, ICE reclassified many previously correctable errors (including missing signatures and incorrect citizenship-status selections) as immediately substantive, significantly narrowing the correction window.

E-Verify Requirements

E-Verify is mandatory for federal contractors with the FAR E-Verify clause (FAR 52.222-54), which affects many large financial institutions with government contracts. Beyond federal requirements, state mandates apply to private employers in Alabama, Arizona, Florida (25+ employees), Georgia (10+ employees), Mississippi, North Carolina (25+ employees), South Carolina, Tennessee (35+ employees), Utah (150+ employees), and Virginia (50+ employees, state contractors only). Financial firms with offices or employees in these states must comply regardless of federal contractor status.

Retention Rules

I-9s for active employees are retained throughout employment. For former employees, the retention period is three years from the hire date or one year after termination, whichever is later. USCIS recommends storing I-9s separately from personnel files to facilitate production during inspections, and they are to be producible within three business days of an inspection request.

LCA and Public Access File Compliance for H-1B Employers

Posting and PAF Requirements

Every H-1B Labor Condition Application requires notice of filing posted in two conspicuous locations at each workplace, or via electronic posting on an intranet or a single notice email to employees in similar roles. Notices must remain posted for at least 10 days starting on or within 30 days before the LCA is filed.

The Public Access File must be created within one working day of filing the LCA and must contain: the certified LCA, the worker's actual rate of pay, a full explanation of the actual wage system, prevailing wage documentation, proof of notice posting, and a summary of benefits offered to U.S. and H-1B workers in comparable positions. The PAF must be accessible to any member of the public upon request. Denying access is itself a citable violation. Retention: one year beyond the last date any H-1B worker was employed under that LCA, or one year from LCA expiration, whichever is later.

LCA Amendment Triggers

A new LCA (and amended H-1B petition) is required when an H-1B employee moves to a worksite outside the Metropolitan Statistical Area (MSA) listed on the LCA, when job duties or SOC code change materially, when the salary drops below the required wage, or when the employee changes end-client locations at a third-party site. Financial firms with employees splitting time between offices in different MSAs (New York and Greenwich, San Francisco and Palo Alto) are responsible for verifying each site falls within the same MSA or filing separate LCAs.

Remote Work and Short-Term Placement Rules

The regulations provide a 30-day safe harbor: an H-1B worker may be placed at a new worksite outside the LCA area for up to 30 workdays in a one-year period without a new LCA, provided the employer pays lodging, travel, and meals. This extends to 60 workdays if the employee maintains a workstation at the permanent site, spends a substantial amount of time working there during the year, and maintains a residence in the original area.

An H-1B employee's home is a "place of employment" if they work from there regularly and continuously. A home within the same MSA as the office on the LCA generally does not require a new filing. A home in a different MSA does require a new LCA and amended petition, and the prevailing wage must reflect the home location.

Financial services firms with multi-office or hybrid work setups often map every H-1B employee's actual physical worksite against their LCA filings at least quarterly to identify potential mismatches. Alma's enterprise platform automates worksite tracking and flags potential LCA mismatches before they become compliance violations.

Project Firewall and the New DOL Enforcement Posture

The Department of Labor launched Project Firewall on September 19, 2025, shifting from complaint-driven oversight to proactive, agency-initiated H-1B investigations. For the first time, the Secretary of Labor can personally certify the opening of an investigation where "reasonable cause" exists, with no formal worker complaint required. Within two months, DOL reported at least 175 ongoing investigations and assessed $15 million in back wages.

Penalties for LCA violations are approximately $2,364 per substantial violation or approximately $9,624 per willful violation, escalating to up to $67,367 for willful violations involving displacement of a U.S. worker, plus back wages and mandatory debarment from the H-1B program for at least one year (substantial), at least two years (willful), or at least three years (willful with displacement). DOL has asserted personal liability against individual officers who exercise control over LCA compliance decisions.

Financial services firms are subject to prevailing wage compliance requirements for every H-1B employee. Employers must pay the higher of the actual wage (paid to similarly situated U.S. workers) or the prevailing wage for the occupation and geographic area per DOL wage data. Common SOC codes in financial services include: Financial and Investment Analysts (13-2051), Software Developers (15-1252), Compliance Officers (13-1041), Financial Managers (11-3031), and Statisticians (15-2041) for quantitative roles.

Proposed prevailing wage increases (March 2026): A DOL proposed rule would raise wage level thresholds significantly, moving Level I from the 17th to the 34th percentile and Level IV from the 67th to the 88th percentile of occupational wage data. This rule is not yet final, with comments closing May 26, 2026, but financial services employers are monitoring the potential cost impact closely.

USCIS Site Visits: Expanded Scope Under the H-1B Modernization Rule

The H-1B Modernization Rule (effective January 17, 2025) codified USCIS's Fraud Detection and National Security (FDNS) authority to conduct site visits at employer offices, third-party client sites, employee homes (for remote workers), and via telephone or video. Visits are unannounced and typically last 30 to 60 minutes. FDNS officers verify company facts, employee job duties, wages, and work locations against petition details, and interview employees separately.

Failure to cooperate with a site visit can result in petition denial or revocation.

Many financial services firms designate an immigration site visit coordinator, train front-desk and reception staff on response protocols, and maintain centralized, accessible records of all H-1B petitions, LCAs, and PAFs. With remote and hybrid work common across the industry, discrepancies between a petition's listed worksite and the employee's actual workspace are a top red flag.

FINRA, SEC Licensing, and Visa Status Coordination

No Citizenship Requirement for Any Securities Registration

Neither FINRA nor state regulators require U.S. citizenship or permanent residency for any securities registration. This applies to FINRA-administered exams (Series 7, Series 79, SIE) and state-administered exams (Series 63, Series 66). H-1B, L-1, O-1, and TN visa holders are eligible for all of these exams. Form U4 has no field for visa type, though it requires a Social Security Number (applicants without an SSN must contact FINRA's Gateway Call Center for alternative processing). Similarly, the SEC imposes no citizenship requirement for investment adviser registration via Form ADV.

Practical Coordination Issues for Employers and Employees

While licensing is visa-agnostic, several issues require cross-functional coordination between compliance, HR, and immigration teams:

• Employer-specific authorization: H-1B and L-1 visas are employer-specific. O-1 visas are petition-specific but permit concurrent work for multiple employers through an agent arrangement. An H-1B holder cannot associate with a second broker-dealer on a 1099 basis without a separate petition.
• Work authorization gaps: FINRA registration is not automatically voided when work authorization expires, but the firm cannot legally employ the individual. If employment terminates, the firm must file Form U5 within 30 days. The individual then has a two-year window before representative-level qualification exams (e.g., Series 7) expire, though the SIE exam remains valid for four years.
• Insurance licensing: Some states (including Georgia and Alabama) require citizenship and lawful-presence affidavits from insurance license applicants, and over a dozen additional states require non-citizens to provide work authorization documentation.

A centralized system linking visa expiration dates with FINRA registration records, continuing education deadlines, and state licensing renewals can help firms maintain compliance. The H-1B petition's job description is required to accurately reflect securities-related duties.

Wage-Weighted H-1B Lottery and Other 2026 Regulatory Changes

Wage-Weighted Selection (Effective February 27, 2026)

Beginning with the FY2027 cap season, USCIS replaced the random H-1B lottery with a wage-level weighted system. Registrations at higher DOL wage levels receive greater selection probability. DHS-projected odds based on historical registration data: roughly 61% for Level IV, 46% for Level III, 31% for Level II, and only 15% for Level I. Actual selection rates may differ based on registration volume. Financial services firms that offer competitive salaries are expected to see improved selection odds for most roles, but entry-level analyst positions at Level I face substantially reduced chances.

Read: H-1B Wage Level Rule Explained for detailed analysis of how the wage-weighted lottery affects financial services employers and employees

$100,000 Supplemental H-1B Fee

A Presidential Proclamation imposed a $100,000 fee on certain new H-1B petitions filed for beneficiaries abroad (September 21, 2025 to September 21, 2026). Exemptions include renewals, extensions of existing status, and change-of-status petitions for individuals already in the U.S., provided those requests are approved by USCIS. These exemptions are conditional; if a change of status is denied or the beneficiary departs the U.S. while the petition is pending, the fee may apply. Litigation is ongoing, with multiple active court challenges. The fee expires September 21, 2026, unless extended.

Premium Processing Fee Increase

Effective March 1, 2026, USCIS raised premium processing fees to $2,965 for H-1B petitions (up from $2,805). Premium processing guarantees an adjudicative action, which may be an approval, denial, Request for Evidence (RFE), or Notice of Intent to Deny (NOID), within 15 business days for H-1B petitions. An RFE resets the 15-business-day clock upon the applicant's response.

H-1B Modernization Rule Highlights

The rule clarified that the specialty occupation standard means the degree requirement must be "usual, typical, common, or routine" for the occupation. It codified the deference policy as regulation, requiring officers to defer to prior approvals involving the same parties and facts unless there has been a material change, error, or new material information adversely impacting eligibility. It also expanded FDNS site visit authority as described above.

M&A Considerations for Financial Services

Mergers, acquisitions, fund closures, and corporate restructurings are routine in financial services. Each event creates immigration compliance obligations that are typically addressed before closing.

Stock purchases preserve the legal entity and its FEIN, generally supporting continuity of visa sponsorships and pending green card cases, but carrying forward all historical I-9 and LCA liabilities. Asset purchases create a new employing entity that must demonstrate successor-in-interest status or file new petitions across the board.

To qualify as a successor-in-interest, the acquiring entity must assume the immigration-related interests and obligations of the predecessor, including all LCA obligations, demonstrate readiness to continue employing workers in the same positions, and maintain the same job duties, salary, and work location. A sworn statement accepting all LCA obligations must be placed into each H-1B employee's PAF before the successor entity begins employing H-1B workers. If successor-in-interest status is not established, new H-1B petitions must be filed for every affected worker, PERM labor certifications may need to be re-filed, and I-140 petitions may require amendment, though priority dates can sometimes be preserved through AC21 portability.

For I-9s, successor employers can either treat acquired employees as new hires (completing fresh I-9s) or as continuing employees (retaining predecessor forms but assuming liability for all errors).

Why Choose Alma for Financial Services Immigration?

See how Alma supports business immigration programs for companies across banking, fintech, and professional services

Traditional law firms often struggle with the speed and complexity that financial services demand. Alma's platform is built for companies managing multiple visa types across many employees, offices, and jurisdictions, and maintains an industry-high approval rate.

Centralized compliance tracking: Alma's platform monitors visa expiration dates, LCA posting deadlines, PAF completeness, I-9 reverification dates, and FINRA/licensing milestones in one system. Automated alerts flag upcoming deadlines before they become violations.

Experienced attorneys: Alma attorneys have deep experience across the visa categories financial services firms use most: H-1B, L-1A/L-1B, O-1A, TN, and EB-2 NIW for employees pursuing green cards independently.

Transparent pricing: Flat-fee, per-visa pricing with no hourly billing surprises. RFE responses are included in the base fee. A 50/50 payment plan is available, and monthly pricing models are offered for Growth and Enterprise clients.

Site visit readiness: Alma prepares employers for FDNS visits by maintaining organized, accessible petition records and providing site visit response training for HR and front-desk staff.

Schedule a consultation to discuss your firm's immigration compliance program with an experienced attorney.