Exchange Control Services
South Africa is one of only a few countries who still have exchange control regulations in place.
For those not familiar with the impact of exchange control regulations, it is basically the mechanism that the South African Treasury uses to regulate the flow of money and assets into and out of South Africa.
They effect every transaction, no matter what amount of rand gets transferred and who the sender or recipient of the money is.
Who regulates exchange control regulations?
The South African Reserve Bank (SARB) controls and oversees the exchange control regulations, but designates power to so-called 'authorised dealers' who oversee and regulate the market on their behalf.
Currency trading companies, such as Incompass, will trade via these authorised dealers, but are able to offer better rates and do not have to charge money transfer service fees due to the effect of bulking transfers. Note for transfers under ZAR 50,000 fees will apply.
Some things you need to know about exchange control regulations
- It is applicable to all transactions, no matter the size.
- No resident may effect a transfer without prior approval.
- No company or legal entity may effect a transfer without prior approval.
- Only authorised dealers are allowed to effect a currency transfer.
- Outward payments may only be made for permissible reasons and under conditions that are approved by the authorised dealers on behalf of the Reserve Bank.
- All payments made to foreign parties must be reported to the Reserve Bank.
- There are set amounts for personal transfers in the form of allowances that must be adhered to.
The repercussions of failing to comply with the exchange control regulations
It is imperative for any business or individual to act in accordance with these regulations! Failing to do so could mean that the South African Reserve Bank issues hefty fines (up to 100% in extreme cases).
Incompass offers a number of exchange control services to help your company comply with South Africa's exchange control regulations.
What are the exchange control services Incompass offer?
Incompass can advise and assist you with the following:
- Opening accounts for foreign payments, both incoming and outgoing.
- Customer Foreign Currency (CFC) accounts.
- Currency Investment Accounts – Foreign Currency Accounts (FCAs).
Find out more about our other trade services too.
Why should you enlist our help for these services?
The Incompass team are exchange control experts. We take away the pain and processes allowing you to focus on running on your business. Our experts are able to:
- Provide expert advice. Exchange control regulations are not unique to South Africa but very few countries still have these regulations in place. It is thus not an area many professionals are familiar with.
- Ensure that your business complies. This means you won't be faced with hefty fines from the South African Reserve Bank.
- Offer better rates. This is due to the fact that we conduct bulk transfers with the banks.
- Save you money. Incompass do not charge money transfer service fees for transfer over ZAR 50,000
Make money transfers simple with the help of our experts.
- Market leading forex rates.
- No administration fees.
- ISO 9001 accredited service levels.
- ISO 27001 accredited security levels.
- 100% transparency on all money transfers.
- Tailored services to meet your money transfer needs.