Skip to main content

May 2013: Consider exchange control regulation before swiping your card

By April 18, 2015October 9th, 2023Newsletter

May 2013: Consider exchange control regulation before swiping your card

April 18, 2015

Subsequent to a previous fresh milk article on swiping SA credit and debit cards while living abroad we’ve encountered a number of clients whose bankcards were couriered to their new home country. Blissfully believing they may use their cards as if back home…

Not so, according to exchange control regulations in South Africa. What amounts to illegal swiping of your credit card can attract penalties of 25% to 40% on value of purchases. In some cases the South African Reserve Bank may insist on the funds being repatriated to South Africa!

It is fallacy that one may use your credit card in the year of departure till the end of such calendar year or card expiry date. No can do!

The unspent portion of ones annual travelling allowance does now form part of ones single discretionary allowance and may be remitted to SA residents temporarily living abroad. Subject only to a SWIFT bank-to-bank transfer but not on your credit card.

SA expats who have not, or not able to, formally emigrate are classified as residents temporarily abroad and are obliged to alert their SA bank with an undertaking not to use a credit card while living in another country.

Should you find yourself in a compromised position relative to wrongful bankcard usage, you should speak to us.

It’s the right thing to do to protect your family’s wealth and retirement investments for a successful future in your new home country. For advice and assistance contact us or register for a free consultation.