South Africa is one of the few countries that continues to operate an exchange control system and it seems unlikely that this will change anytime soon.
So what does it mean for you?
Well, all transfers of money out of South Africa must comply with the regulations as set out by the Reserve Bank; any breach is deemed a criminal offence so it’s important to do things right.
For example, did you know that simply using a South African debit or credit card overseas, without authorisation from the issuing bank, could potentially land you in hot water? The reason being that the effective transfer of money out of the country does not comply with exchange control regulations; in short you’re moving funds without approval. A lot of people unwittingly come unstuck with this sort of thing and the financial penalties can be severe. And when it comes to moving larger amounts offshore, the process can become even more tricky.
Exchange control affects the if, how and when for moving proceeds of your South African bank account, investments, property, pensions, trust etc., out of the country. It’s complex and getting the correct advice ensures you do it right and maximise the bottom line in your local currency.
We’ve often met clients who come to us after attempting to administer their cross-border finances on their own or have left their finances in the hands of inexperienced financial planners who generally only have knowledge of the South African financial services industry. As a result, they find themselves amid administrative battles with authorities and fund administrators and often lose out on significant financial rebates.
Do it right and get more money, faster
A consultation with a financial migration specialist at finglobal.com is completely free of charge and without obligation. We’ll assess your situation and provide a solution that ensures you achieve your financial goals.
At the same time we’ll also explain the opportunities that are available to you under South Africa’s exchange control rules, such as how to turn your retirement annuities into cash, how to position yourself to receive South African source inheritance in the future and how to maximise tax opportunities.
We offer better exchange rates than commercial banks for overseas transfers and optimal payouts over a shorter period than other providers, and everything’s fully compliant.
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