Many South Africans are looking to move funds offshore, for reasons that range from travel and investing to importing or exporting new products and launching new businesses.
But without observing the correct exchange control procedures, you or your business could quickly land in hot water with the South African Reserve Bank (Sarb).
Introduced in 1961 in an effort to ensure currency stability and manage the country’s balance of payments, exchange controls are used to manage, measure and report total foreign exchange inflows and outflows.
Consequently, all foreign exchange transactions must be reported by authorised dealers to Sarb as the relevant regulatory authority by way of a Balance of Payments form.
South Africa is one of just a few countries globally that still imposes exchange controls on individuals and entities (others include China and India), and failure to comply could mean a hefty fine, the freezing of your bank accounts, or even, in severe cases, the forfeiture of assets.