South Africa is one of the few countries that continues to operate an exchange control system and it seems unlikely that it will disappear any time soon.
So what does it mean for you? Well, most importantly, 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.
Exchange control also affects the if, how and when you can and should move the 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 comply and maximise the bottom line in your local currency.
To do it right why not talk to us – a consultation with a specialist at cashkows.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 how to transfer money turn your retirement annuities into cash, position yourself to receive South African source inheritance in the future, maximise tax opportunities etc, all in full compliance with exchange control.
For free advice let us call you.