Most expats living abroad who plan on returning to South Africa don’t need to concern themselves with the workings of a blocked rand account. If you’ve financially emigrated though, you’d better perk up your ears.
Who’s affected by blocked bank accounts?
This type of account will only apply to those who have chosen to financially emigrate.
Blocked bank (Rand) accounts were initiated as a means to control asset transfers out of South Africa. This type of account becomes the emigrant’s only account through which capital and income from all assets, declared in their financial emigration application has to flow, and it’s managed by a single authorised dealer.
What type of income can be transferred via a blocked bank account?
Stipulations for fund transfers vary for different countries, but for South African expats who have financially emigrated, blocked bank accounts can be used to transfer:
- the full capital value of a retirement annuity
- interest and profits
- monthly pension payments (registered pension funds only)
- rentals on fixed property
- income distributions from close corporations
- directors’ fees
- close corporation member fees
- cash bonuses on insurance policies
- income received from a trust created in terms of a last will and testament
- income received from an inter-vivos trust
- the difference between the purchase consideration and maturity value of quoted gilts.
Sounds simple enough, doesn’t it? Well, it may not be the mental conundrum you’d envisioned, but there are simply enough things to worry about when it comes to commuting between continents.
Why not leave the number crunching to us? We can provide you with a full service financial emigration solution with competitive exchange and interest rates as well as post emigration debit order payment facilities.