South African Reserve Bank (Sarb) Exchange Control Rules and Regulations

With respect to loans to a South African company, it is important to note that South African residents are not allowed to borrow from a non-resident unless approved by exchange controls. Without the approval of exchange controls, it will not be possible to recover the principal or interest. (ii) You can fill out this form and send it by e-mail to the Financial Control Department (SARBFNSDept@resbank.co.za). Repatriation of value to South Africa through crypto assets is not permitted under an individual`s one-time discretionary exemption limit and/or foreign capital deduction. This is due to the nature of the assets and the fact that the transaction is currently not reportable in the FinSurv reporting system. Similarly, non-residents who have imported crypto assets into South Africa for a local sale cannot transfer the proceeds of the sale overseas. The applicable exchange control policy is described in section G.(C)(i) of the Currency and Exchange Handbook for Licensed Dealers. It is important to note that non-resident shareholders of a South African company must obtain approval from stock exchange control to hold shares in a South African company. This is a simple administrative procedure that typically involves the company asking an authorized broker to certify the original share certificate as “non-resident,” indicating that it is owned by a non-resident. Confirmation is usually a mere formality and, in practice, usually takes up to two or three weeks. Applicants must provide proof of registration with the Financial Sector Conduct Authority as well as a manually completed quarterly asset allocation report showing assets under management at the end of the last quarter or at the time of application.

The Quarterly Asset Allocation Report template can be downloaded from the South African Reserve Bank`s website: www.resbank.co.za by following the links below: Financial Oversight Sections>>Institutional Investors>Templates. You need to contact your South African banker and give them all the details of the loan. Until 2004, foreign companies were not allowed to be listed on the South African Stock Exchange. In his 2004 budget speech, the Minister of Finance announced that companies could be listed on a South African stock exchange so that South African investors could gain exposure abroad through domestic channels. This exemption has been extended to derivatives. Guidelines for filing an application for authorization to operate an ADLA can be found in section A.3 (B) of the Foreign Exchange and Exchange Handbook for Licensed Foreign Exchange Dealers with Limited Authority. The number one port of call for many South Africans when thinking of large international money transfers is the bank. However, when it comes to advice, competitive pricing and attractive terms, the bank falls short. A trusted forex provider can save you a significant amount on every transfer you make and advise you on how to get the most out of each transfer. The Minister of Finance issues ordinances and rules in accordance with exchange control regulations. The current rate was published in Government Communication R.1112 of 1 December 1961 and amended from time to time.

Orders and rules contain orders, rules, exceptions, forms and procedural agreements. A client`s exchange control status is different from their tax status. It is important for a person to know their status from the beginning so that future money transfers can be made easily. If you have any questions about your tax status, please do not hesitate to contact us safe@sableinternational.com and we will conduct a free assessment of your current tax status. Don`t try alone. Any mistake in your application can lead to delays and, in extreme cases, even penalties if you don`t exactly follow the regulations. Authorized Limited Currency Brokers (ADLA), including bureaux de change, are authorized to conduct certain foreign exchange transactions, including travel-related transactions. For a list of ADLAs, see section A.2(A) of the Currency and Exchange Manual for Licensed Foreign Exchange Dealers with Limited Authority. The Department of Financial Supervision reserves the right to modify, grant or impose new or additional approvals or conditions communicated by the Department on the SARB website. Crypto assets are not legal tender in South Africa, so any merchant or beneficiary can reject them as payment.

These assets are neither guaranteed nor endorsed by the SARB as they operate independently of the central bank and raise users` awareness of the potential risk of fluctuations in the value of crypto assets. There are currently no specific laws or regulations specifically governing the use of crypto assets in South Africa and therefore there are no regulatory compliance requirements for local trading of these assets. The legal protection or recourse to users, traders or intermediaries of crypto-assets therefore depends on the general principles of the common law. Trading in crypto assets is done at the unique and independent risk of the end user. Initial coin offerings refer to crypto assets and their use is also unregulated and unsupervised by the SARB. For payments over R50,000, the importer must present the customs clearance documents to the authorized dealer once the goods have been cleared by SARS Customs as proof of the use of foreign currency and receipt of the goods in South Africa. The Currency and Exchange Handbook for Licensed Dealers (Authorized Dealers` Handbook) contains approvals and conditions for foreign exchange transactions that may be conducted by licensed dealers and/or on behalf of their clients within the meaning of Exchange Control Regulation 2(2), details of the associated administrative responsibilities, as well as FinSurv reporting requirements. The Licensed Dealers Handbook should be read in conjunction with the Exchange Control Regulations, and authorized dealers may conduct transactions without reference to the Financial Monitoring Service, provided that such transactions are permitted under this Authorized Dealers Guide. One of the main objectives of the control of non-resident securities is to ensure that, since all non-resident income from their securities is freely transferable, non-residents do not acquire securities from residents other than through authorized channels at a fair and market-related price. It is also important to note that exchange control rules apply not only to securities registered in the name of a non-resident, but also to securities registered in the name of a resident acting as an agent of a non-resident. Most people are familiar with exchange control regulations, even if they don`t fully understand the details and implications.

Due to the complexity of these regulations, there is a perception that it is difficult to transfer money in and out of South Africa. This does not apply if you are working with an experienced forex provider who is a licensed trader and can guide you through the process to ensure that you are compliant along the way. Non-resident companies, licensed dealers, South African stock exchanges and CIS managers registered under the Collective Investment Schemes Control Act 2002 (Act No. 45 of 2002) for the management of collective investment schemes may list these instruments on a South African stock exchange. Residents of South Africa who have not applied for exchange control relief under the expired Special Voluntary Disclosure Program (announced by the Minister of Finance in his 2016 Budget Speech) and who now wish to resolve violations of exchange control regulations should fully inform the Department of Financial Supervision. You can do this by submitting an application through an authorized retailer or directly to SARBFNSDept@resbank.co.za (Attention: Compliance and Enforcement Division). Anonymous requests will not be accepted. Any request to the financial monitoring service must be made through an authorized reseller or ADLA. You should therefore contact your banker or ADLA, who can assist you with any questions regarding exchange controls and, if necessary, submit a request to the department on your behalf.

All cross-border foreign exchange transactions conducted by licensed brokers, restricted licensed dealers and licensed limited currency dealers on behalf of their clients, regardless of value, are recorded in the FinSurv reporting system and reported daily to the Department of Financial Supervision.