2 September 2016 by Tax and Exchange Control Alert - 2 September 2016

Don’t be taken by surprise: Exchange control rulings and manual replaced

This Circular effectively replaces the current exchange control rulings and exchange control manual, which have been in existence since 2005, with two currency and exchanges manuals and two currency and exchanges guideline documents.

The exchange control rulings are replaced by:

  • the currency and exchanges manual for authorised dealers; and

  • the currency and exchanges manual for authorised dealers in foreign exchange with limited authority (Manuals).

The exchange control manual is replaced by:

  • the currency and exchanges guidelines for individuals; and

  • the currency and exchanges guidelines for business entities (Guidelines).

The Manuals and Guidelines are not intended to replace or supersede the Currency and Exchanges Act, No 9 of 1933 (Act), or the regulations, orders and rules issued in respect thereof; nor are the documents intended to replace the general norms and policies applied by SARB.

Rather, the aim of the documents seems to be to assist authorised dealers, their customers and other interested parties by providing a general understanding of the purpose, scope and operation of the exchange control system in South Africa and the common monetary area which, for many, can often appear to be clouded in mystery.

In addition, the Circular states that the Manuals and Guidelines will be available on the SARB website. We assume that this will include future amendments thereto.

It is clear that the objective of National Treasury and SARB was to streamline and facilitate a simplified understanding, interpretation and practical application of the Act and its regulations in order to ensure the best compliance.

The Manuals and Guidelines took effect on 1 August 2016.

Written by Mark Morgan and Heinrich Louw

download PDF

The information and material published on this website is provided for general purposes only and does not constitute legal advice.

We make every effort to ensure that the content is updated regularly and to offer the most current and accurate information. Please consult one of our lawyers on any specific legal problem or matter.

We accept no responsibility for any loss or damage, whether direct or consequential, which may arise from reliance on the information contained in these pages.

Please refer to the full terms and conditions on the website.

Copyright © 2020 Cliffe Dekker Hofmeyr. All rights reserved. For permission to reproduce an article or publication, please contact us cliffedekkerhofmeyr@cdhlegal.com

You may also be interested in