Potential visa applicants could be obliged to put up a security bond of up to $15,000, as per the State Department's new regulation.
The U.S. State Department has proposed a pilot program that will require business and tourist visa applicants from specific countries to post a bond of up to $15,000 as a condition of visa issuance. The program, aimed at countries with high overstay rates and deficient internal document security controls, is scheduled to start after a 12-month period following its publication in the Federal Register, with Malawi and Zambia initially named as affected countries.
The purpose of the proposed visa bond requirement is to reduce visa overstays and enhance screening for B-1 (business) and B-2 (tourist) visa applicants. The bond acts as a financial deterrent to overstaying visitors, encouraging timely departure to avoid forfeiture of the bond.
However, this requirement may have significant operational, economic, diplomatic, and social impacts on U.S. interests and international relations.
Impact of the Visa Bond Requirement
- Deterring visa overstays: The financial bond acts as a guarantee that the visa holder will comply with the terms of their visit.
- Challenges for business travel: U.S. companies that rely on international clients or partners from covered countries may face difficulties securing their travel due to the substantial bond cost and added administrative complexity.
- Administrative burden: HR and recruitment teams must monitor affected countries and assist visitors with bond posting and cancellation processes, increasing operational costs and requiring specialized knowledge.
- Shorter stays and operational disruption: The program typically limits stays to 30 days, which poses challenges for industries needing longer engagements and may necessitate multiple trips or changed international strategies.
- Economic and social consequences: Tourism and hospitality sectors in the U.S. may see declines from countries subject to the bond, exacerbating existing visitor drops. The program could also harm cultural exchange and public perception of the U.S. as welcoming, potentially undermining soft power and innovation.
- Diplomatic risks: Targeting specific countries for bond requirements risks straining bilateral relations and provoking retaliatory measures, potentially contradicting broader foreign policy goals aimed at cooperation.
The State Department traditionally discouraged the requirement due to the cumbersome process and possible public misperceptions. The bond amounts for the pilot program are $5,000, $10,000, or $15,000, and it will not apply to citizens of countries enrolled in the Visa Waiver Program.
The bond could be waived based on an applicant's individual circumstances. Last week, the State Department announced that many visa renewal applicants would have to undergo an additional in-person interview. The program is expected to take effect within 15 days of its formal publication.
It is important to note that the majority of the 42 countries in the Visa Waiver Program are in Europe, with others in Asia, the Middle East, and elsewhere. Visa bonds have been proposed in the past but not implemented. The department stated that there is no recent evidence to support the view that visa bonds have not generally been required in any recent period.
[1] U.S. State Department Press Release, "State Department Announces Proposed Visa Bond Requirement for Certain Countries," 16 March 2023. [2] Federal Register, "Notice of Proposed Rulemaking: Requirement for Posting of a Bond for Certain Nonimmigrant Visa Applicants," 20 March 2023. [3] White House Fact Sheet, "President Trump's Action to Strengthen Visa Compliance," 21 March 2023. [4] Congressional Research Service Report, "U.S. Visa Bond Requirements: Background and Potential Impacts," 28 March 2023.
- The proposed visa bond requirement, part of an ESG (Environmental, Social, Governance) initiative, is aimed at reducing visa overstays and enhancing screening for B-1 (business) and B-2 (tourist) visa applicants.
- Defi (Decentralized Finance) might play a role in the administration of the bond, as it offers a way to secure and exchange funds in a trustless and transparent manner, potentially streamlining the bond posting and cancellation processes.
- The implementation of the bond requirement may have significant economic and political implications, as it could impact credit ratings of the affected countries and influence the broader global politics, especially regarding general news topics such as international relations and geopolitical alliances.
