Frequently asked questions
The tracking number is your reference number that relates to the incident that you have reported. If you want to add more information to a report at a later stage, you can call back and quote the reference number and just give the agent the extra information. This reference number is yours alone to ensure that your identity is protected.
No. Tip-offs Anonymous discourages a reward scheme because it invites the wrong attitude towards the scheme. Reporting of any wrongdoing is a demonstration of good citizenship.
The call centre operator will ask you questions in order to get information that is necessary for investigation. Callers usually have valuable information of which they are not aware and the call centre operator will ask these probing questions to guide you through the reporting process.
When you call the Tip-offs Anonymous call centre, you do not have to give your name or any personal details. There is no caller identification so no one knows where the call was made. Even though the calls are recorded, the SARB will never have access to the recordings so no one will be able to identify your voice. There is also a duty evaluator on site at the call centre who sanitises every call, which means that he/she strips out any information that could lead to identifying the caller. The SARB will only get a factual report of the alleged wrongdoing with no additional information.
The SARB is committed to ensuring that Tip-offs Anonymous is successful and part of the success is to ensure that all tip-off reports are followed up. Be assured that reports will be investigated. The person who made the tip-off will not be told how the investigation is progressing because these investigations are sensitive, must be kept confidential and take some time to complete. Should an investigation lead to a prosecution, arrest and dismissal of the person or people involved in the wrongdoing, then the caller may be informed or he/she will notice that the person(s) is no longer in the workplace.
Yes, this is a possibility and the SARB and Tip-offs Anonymous are very aware that this can happen. All the operators in the call centre are trained to identify a malicious call and so are the evaluators. They filter these calls and flag them as malicious when they are forwarded to the SARB. When these reports are read by the SARB’s management, management can see that the call could be malicious. Remember that a tip-off is merely an allegation of wrongdoing, and proper evidence and proof have to be obtained before any action can be taken.
All exchange control-related matters must be addressed through an Authorised Dealer, which is a registered bank authorised to deal in foreign exchange or an ADLA. If your exchange control queries are not answered below, we suggest that you contact an exchange control or foreign exchange official at any ADLA who will be able to assist you with your queries.
The Financial Surveillance Department of the SARB only accepts requests or applications submitted by an Authorised Dealer on behalf of its client.
Exchange controls aim to restrict the buying and selling of a national currency or to preserve foreign currency reserves. Controls may include a ban on the conversion of the proceeds of certain assets or by certain categories of person, an obligation to surrender foreign exchange proceeds to the central or local bank, authorisation requirements, quantitative limits or indirect methods. Exchange controls are commonly imposed because of concerns about outward flows of currency but they can also be imposed to restrict inward flows, if for example an influx of funds risks damaging an economy.
Exchange controls aim to:
An Authorised Dealer is a bank which has been registered in terms of the Banks Act, 1990 (Act No. 94 of 1990) as amended by the Financial Sector Regulation Act, 2017 (Act No. 9 of 2017) and authorised to deal in foreign exchange. A list of Authorised Dealers is available in section A.2(A) of the Currency and Exchanges Manual for Authorised Dealers.
Authorised Dealers in foreign exchange with limited authority (ADLAs), including bureaux de change, are authorised to deal in certain designated foreign exchange transactions, including travel-related transactions. A list of ADLAs is available in section A.2(A) of the Currency and Exchanges Manual for Authorised Dealers in foreign exchange with limited authority.
A Restricted Authorised Dealer is a person authorised by the Financial Surveillance Department to deal in foreign exchange utilising a locally issued credit card for permissible cross-border transactions.
All cross-border foreign exchange transactions carried out by Authorised Dealers, Restricted Authorised Dealers and Authorised Dealers in foreign exchange with limited authority, on behalf of their clients, irrespective of the value, are captured on the FinSurv Reporting System and reported to the Financial Surveillance Department on a daily basis.
Any request to the Financial Surveillance Department must be channelled through an Authorised Dealer or ADLA. You must, therefore, approach your banker or ADLA, who will be able to assist you further with exchange control queries and will submit an application to the department on your behalf if necessary.
The processing time for applications submitted to the Financial Surveillance Department is between two and four weeks, depending on the nature and complexity of the application. This excludes the time taken to process the application at the Authorised Dealer or ADLA prior to its submission.
The Financial Surveillance Department will generally respond to online queries and emails within four to six weeks. However, during certain times of the year, the department receives high volumes of queries and it can take longer to respond.
It is an allowance up to an overall limit of R1 million per calendar year, available to each South African adult resident (above 18 years old).
The single discretionary allowance may be used for any legal purpose abroad (including for investment). It may be utilised solely at the discretion of the resident, without a requirement for the resident to produce documentary evidence relating to the funds to be transferred to the Authorised Dealer, except for travel outside the Common Monetary Area (eSwatini, Lesotho, Namibia and South Africa). If the allowance is used for travel, a passenger ticket needs to be produced.
The resident must produce a valid green, bar-coded South African identity document or smart identification card at the Authorised Dealer when using the allowance. In turn, the Authorised Dealer must provide the resident’s identification number when reporting the transaction in terms of the FinSurv Reporting System.
Yes. Private individuals resident in South Africa may open a foreign currency account for permissible transactions.
Authorised Dealers may allow residents to export Krugerrand coins or the equivalent in fractional Krugerrand coins up to an amount of R30 000 as gifts for non-residents subject to the completion of the prescribed SARS Customs declaration.
Non-resident visitors may export up to 15 Krugerrand coins or the equivalent in fractional Krugerrand coins, supported by the prescribed SARS customs declaration, provided that they can prove that the coins were acquired with the proceeds of foreign currency brought into South Africa.
Visitors to South Africa and South African residents are only permitted to import or export SARB notes or banknotes of other CMA countries to the value of R25 000 per person.
Visitors to South Africa are entitled to bring foreign currency in any format into South Africa, which is convertible into rand at any Authorised Dealer or ADLA. Visitors should retain confirmation of this conversion in case they want to convert the rand back into foreign currency.
No. Emigrating formalises your exit from South Africa for exchange control purposes. It does not mean that you have to relinquish your South African citizenship. You can retain your South African passport.
In terms of exchange control policy, private individuals (natural persons) who reside permanently in a country outside the CMA (eSwatini, Lesotho, Namibia and South Africa) may formalise their emigration by completing Form MP 336(b) and submitting the form and supporting documents to a South African Authorised Dealer.
You can formalise your emigration by:
Emigrants qualify for the following facilities:
The emigrant's capital account is the current, savings or interest-bearing deposit account that the emigrant holds with an Authorised Dealer. Once an emigrant's emigration status has been recorded, all capital transfers must flow offshore through this account. Any cash balances remaining after the appropriate facilities have been granted, all capital payments subsequently accruing and the total proceeds of any asset subsequently sold will be credited to the emigrant's capital account.
Your remaining South African assets must be under the control of the Authorised Dealer that finalised your emigration to ensure that all relevant funds, as outlined above, are credited to your emigrant's capital account. These funds may be used in South Africa for any purpose.
The Financial Surveillance Department of the SARB will, on application submitted through an Authorised Dealer, consider requests to transfer remaining liquid assets or export quoted or unquoted securities in lieu of cash, which exceed the foreign capital allowance limits.
Yes. These proceeds may be transferred directly to you abroad if you do not have a bank account in South Africa, provided your emigration has been formalised and that the foreign capital allowance limit will not be exceeded.
The completed form and supporting documents must be submitted to an Authorised Dealer, i.e. the commercial bank in South Africa at which you hold a bank account, or any commercial bank in South Africa if you no longer have a local account. The Authorised Dealer will be able to assist you in finalising your emigration in terms of exchange controls.
South African companies (excluding trusts and close corporations) can make bona fide new outward foreign direct investments into companies outside the Common Monetary Area (eSwatini, Lesotho, Namibia and South Africa) up to the value of R1 billion per company per calendar year through any Authorised Dealer.
In order to invest above this amount, the company must obtain at least 10% of the foreign target entity’s voting rights. The company’s Authorised Dealer is required to submit an application to the Financial Surveillance Department of the SARB for approval.
Non-residents may invest freely in South Africa, provided that the South African Authorised Dealer views suitable documentary evidence to ensure that the transactions are concluded at arm's length and at fair market-related prices, and are financed in an approved manner. Any income earned on the investment may be transferred abroad.
Approved financing includes the introduction of foreign currency, rand from a non-resident rand account in the name of the non-resident, and/or rand from a Vostro account held in the books of the Authorised Dealer.
Should a non-resident disinvest from South Africa, the local sale or redemption proceeds of non-resident-owned assets in the country would be freely transferable.
Yes. South African companies may invoice each other locally in foreign currency, but settlement must be in rand.
Yes. An Authorised Dealer must submit an application on the company's behalf to the Financial Surveillance Department for approval before local subsidiaries of overseas companies can make loans to the holding company. The local subsidiary will only be permitted to make these loans in lieu of dividends.
An inward foreign loan is when money is borrowed from abroad.
Any resident can borrow money from a non-resident abroad. This borrowing must be approved by an Authorised Dealer, subject to specific criteria and to the Authorised Dealer recording the loan through the Loan Reporting System.
You must approach your South African banker and provide them with full details of the loan.
The base lending rate, for exchange control purposes, is defined as the prime lending rate, i.e. the rate at which commercial banks lend money to the public.
A trade finance facility is a facility for financing current imports or exports for a period less than 12 months. This type of facility is normally used by South African residents when the overall effective covered cost of the facility is lower than that of local short-term rand finance.
The principal loan amount must be introduced within 12 months from the date of approval. Any extensions must be communicated to the Financial Surveillance Department through the borrower’s Authorised Dealer.
The capital portion of the foreign loan can only be repaid up to the amount that has been received in South Africa. Repayment must take place through an Authorised Dealer. Capital and interest payments must be reported separately by the Authorised Dealer on the FinSurv Reporting System.
It is the maximum amount of funds that institutional investors are allowed to invest in offshore foreign portfolio investments. This prudential limit is calculated as a percentage of the institution’s total retail assets under management. The foreign exposure of retail assets may not exceed 30% in the case of pension funds and the non-linked business, i.e. the underwritten policy business other than individual and fund investment-linked business of life insurers.
For discretionary financial services providers registered with the Financial Surveillance Department as institutional investors, CIS managers and the linked business, i.e. individual and fund investment linked business of life insurers, foreign exposure is restricted to 40% of total retail assets.
Institutional investors are allowed to invest an additional 10% of their total retail assets under management by acquiring foreign currency-denominated portfolio assets in Africa directly through foreign currency transfers from South Africa and/or indirectly, on application to the Financial Surveillance Department through an Authorised Dealer, by investments in instruments issued by African entities that are listed on non-African exchanges to raise funds earmarked for use in Africa or through a foreign registered fund mandated to invest at least 75% of funds under management into Africa.
Institutional assets refer to assets held or managed on behalf of other institutional investors as well as assets received indirectly from institutional investors through an intermediary, such as an administrative financial services provider, nominee company or a discretionary financial services provider not registered as an institutional investor with the Financial Surveillance Department. All assets sourced from an intermediary identified as institutional assets applicable to the underlying institutional investor should be included as institutional assets in the quarterly asset allocation report of the managing institutional investor.
Retail assets refer to assets received from individuals and other entities such as companies and trusts. This includes assets received indirectly from retail clients through an intermediary, such as an administrative financial services provider, nominee company or a discretionary financial services provider not registered as an institutional investor with the Financial Surveillance Department. All assets sourced from an intermediary identified as retail assets applicable to the underlying retail client should be included as retail assets in the quarterly asset allocation report of the reporting institutional investor.
All pension funds, life insurers, CIS managers and discretionary financial services providers registered as an institutional investor with the Financial Surveillance Department are treated as institutional investors for exchange control purposes.
Yes, if a discretionary financial services provider wishes to invest and/or manage funds offshore in respect of retail as well as institutional assets. To register with the Financial Surveillance Department as an institutional investor, a discretionary financial services provider must be registered with the Financial Sector Conduct Authority as a Category II and IIA financial services provider authorised in terms of the FAIS Act.
To register with the Financial Surveillance Department, a request, on the official letterhead of the discretionary financial services provider, should be emailed to SARBPORTFOLIO@resbank.co.za.
Applicants must submit proof of registration with the Financial Sector Conduct Authority as well as a manually completed quarterly asset allocation report reflecting its assets under management as at the last quarter-end or as date of application to the Financial Surveillance Department. The quarterly asset allocation report template can be downloaded from the South African Reserve Bank’s website: www.resbank.co.za, by following the links: Financial Surveillance>Sections>Institutional investors>Templates.
Refer to section B.2(H) of the Currency and Exchanges Manual for Authorised Dealers.
Non-resident entities, Authorised Dealers, South African exchanges and CIS managers registered under the Collective Investment Schemes Control Act, 2002 (Act No. 45 of 2002) to administer collective investment schemes, can list these instruments on a South African exchange.
Until 2004, foreign entities were not allowed to list on a South African exchange. The Minister of Finance announced in his 2004 Budget Speech that, to allow South African investors to obtain foreign exposure through domestic channels, entities would be permitted to list on a South African exchange. This dispensation was further expanded to include derivative instruments.
Equity, debt and derivative instruments based on foreign referenced assets can be inward listed.
Approved inward listed shares, including exchange traded funds as well as debt and derivative instruments, traded and settled in Rand on a South African exchange, are classified as domestic.
South African institutional investors, Authorised Dealers, South African companies, trusts, partnerships and private individuals as well as emigrants, subject to adhering to the emigration policy as outlined in section B.2(J) of the Currency and Exchanges Manual for Authorised Dealers, may invest in inward listed instruments traded and settled in Rand on a South African exchange without restriction.
The entity must approach an Authorised Dealer with full details of the proposed transaction. The request will then be forwarded to the Financial Surveillance Department of the SARB for consideration.
The department monitors exports to ensure that exporters repatriate the proceeds in compliance with Exchange Control Regulations 6, 10 and 11.
The department uses an electronic monitoring system whereby the value of goods exported and declared to the South African Revenue Service’s Customs Division is matched with the export proceeds repatriated and reported by Authorised Dealers.
The SARS Customs Division transmits export data from customs declarations to the SARB. This data is compared with data on the flow of funds (export proceeds), which Authorised Dealers report to the Financial Surveillance Department through the FinSurv Reporting System.
Payment is effected through an Authorised Dealer on presentation of a commercial invoice from the overseas supplier together with the SARS customs clearance documentation evidencing the receipt of the goods in South Africa.
Yes. Authorised Dealers may provide foreign currency for advance payments on behalf of their clients to cover the cost of permissible imports against the presentation of an invoice. These imports exclude capital goods.
For payments exceeding R50 000, the importer must present the customs clearance documentation to the Authorised Dealer once the goods have been cleared through SARS Customs as proof of the use of the foreign exchange and receipt of the goods in South Africa.
These matters must be referred to the South African Diamond and Precious Metals Regulator.
ADLAs, including bureaux de change, are authorised by the Financial Surveillance Department to deal in certain designated foreign exchange transactions, including travel-related transactions. A list of ADLAs is available in section A.2(A) of the Currency and Exchanges Manual for Authorised Dealers in foreign exchange with limited authority.
The guidelines for submitting an application for authorisation to conduct the business of an ADLA can be found in section A.3(B) of the Currency and Exchanges Manual for Authorised Dealers in foreign exchange with limited authority.
An ADLA will be classified into the following four categories:
(i) Category one – An ADLA authorised to operate as a bureau de change.
(ii) Category two – An ADLA authorised to operate as a bureau de change, facilitate specific transactions under the single discretionary allowance limit of R1 million per applicant per calendar year and offer money remittance services in partnership with external money transfer operators.
(iii) Category three – An ADLA authorised to operate as an independent money transfer operator and/or value transfer service provider.
(iv) Category four – An ADLA authorised to:
Category one: R2 million
Category two: R3 million
Category three: R5 million
Category four: R8 million
No. The minimum unimpaired capital requirement cannot be used as capital or working capital in the business of the ADLA. The interest earned on the requirement can be used for the business, but the capital requirement must remain unencumbered and may not be ceded, pledged or used as collateral by the ADLA or any of its stakeholders.
The SARB does not currently oversee, supervise or regulate crypto assets, which were previously referred to as virtual currencies, but is continuing to monitor this evolving area. The SARB’s position on crypto assets remains as set out in the 2014 Position Paper on Virtual Currencies and is summarised below.
Crypto assets are not legal tender in South Africa, so any merchant or beneficiary may refuse them as a means of payment. These assets are not guaranteed or backed by SARB as they operate independently from the central bank and users are alerted to the potential risk of fluctuation in the value of crypto assets. There are currently no dedicated laws or regulations that specifically govern the use of crypto assets in South Africa and, therefore, no regulatory compliance requirements exist for local trading of these assets. Legal protection or recourse to users, traders or intermediaries of crypto assets therefore depends on general common law principles. Dealing in crypto assets is performed at the end-user’s sole and independent risk. Initial coin offerings are related to crypto assets and their use are also unregulated and unsupervised by the SARB.
Neither the Currency and Exchanges Manual for Authorised Dealers nor the Currency and Exchanges Manual for Authorised Dealers in foreign exchange with limited authority allow for cross-border or foreign exchange transfers for the explicit purpose of purchasing crypto assets. From an exchange control perspective, the Financial Surveillance Department is unable to approve any transactions of this nature.
Individuals may purchase crypto assets from abroad using their single discretionary allowance of up to R1 million and/or their individual foreign capital allowance of up to R10 million with a tax clearance certificate per calendar year, as outlined in the abovementioned manuals. A local Authorised Dealer will be able to assist individuals with these allowances.
It should be noted that, when purchasing foreign exchange through an Authorised Dealer, a customer is required to sign a declaration, either physically or electronically, which includes the wording “I have been informed of the limit applicable to the above transaction and confirm that this limit will not be exceeded as a result of the conclusion of this transaction”. It follows that an individual is responsible for ensuring that he/she does not exceed the relative allowance applicable to the transaction i.e. R1 million or R10 million.
An individual may not use another individual’s single discretionary allowance or foreign capital allowance through the granting of a 'loan' or any other similar agreement. This is regarded as a simulated transaction to circumvent the provisions of the Exchange Control Regulations and therefore an illegal activity. In this regard, refer to Exchange Control Regulation 10(1)(c), read with Exchange Control Regulation 22.
The Exchange Control Regulations prohibit transactions where capital or the right to capital is, without permission from National Treasury, directly or indirectly exported from South Africa. This includes transactions where an individual purchases crypto assets in South Africa and uses them to externalise 'any right to capital'. Contravening these regulations is a criminal offence.
The repatriation of value to South Africa through crypto assets is not permitted as part of an individual’s single discretionary allowance and/or foreign capital allowance. This is because of the nature of the assets and because the transaction is currently not reportable on the FinSurv Reporting System. Similarly, non-residents who have introduced crypto assets to South Africa for local sale will not be able to transfer the sale proceeds abroad. The applicable exchange control policy is outlined in section G.(C)(i) of the Currency and Exchanges Manual for Authorised Dealers.
The Intergovernmental Fintech Working Group (IFWG), a committee of South African financial regulators, launched an Innovation Hub to promote responsible financial sector innovation and respond to changing market dynamics. Kindly visit www.ifwg.co.za for further information in this regard.
Innovation Hub users have access to three avenues for assistance:
The Regulatory Guidance Unit exists to help market innovators resolve specific questions regarding the policy landscape and regulatory requirements. Financial sector innovators with questions on fintech or innovation-related financial sector regulation are encouraged to visit the IFWG website and submit an enquiry to the Regulatory Guidance Unit at https://www.ifwg.co.za/regulatory-guidance-unit/. Regulators will continue to assist queries through digital and virtual means, however, due to the pandemic, response times may depend on the volume and complexity of queries and will be provided on a best effort basis.
The Regulatory Sandbox provides financial sector innovators with an opportunity to test new products and services that push the boundaries of existing regulation, all under the responsible supervision of relevant regulators. Participants must apply to the Regulatory Sandbox, and the application can be downloaded at https://www.ifwg.co.za/regulatorysandbox/.
The Innovation Accelerator exists to provide a collaborative, exploratory environment for financial sector regulators to learn from and work with each other – and the broader financial sector ecosystem – on emerging innovations in the industry. Outcomes of these coordinated efforts will be shared on the IFWG Innovation Hub website, and the Innovation Hub’s latest reports can be accessed at https://www.ifwg.co.za/innovation-accelerator/.
There are three options for reporting suspicious activity or transactions to the SARB:
(i) You can email SARBFNSDept@resbank.co.za. If possible, the following information should be included in the email:
(iii) You can call the SARB's independent external hotline service (Deloitte Tip-Offs Anonymous) on 0800 ETHICL (384425). For more information regarding the tip off line, click here.
South African residents who did not apply for exchange control relief under the expired Special Voluntary Disclosure Programme (announced by the Minister of Finance during his 2016 Budget Speech) and who now wish to settle contraventions of the Exchange Control Regulations must make a full disclosure to the Financial Surveillance Department. They can do this by submitting an application through an Authorised Dealer or directly to SARBFNSDept@resbank.co.za (attention: Compliance and Enforcement Division). Anonymous applications will not be accepted.
Applicants may pay a settlement amount ranging from 10% to 40% of the amount involved in the contravention, at the discretion of the Financial Surveillance Department. The determination of the settlement will, inter alia, depend on whether the applicant elects to retain the funds abroad or repatriate them.
All applications submitted to the department must be accompanied by a frank and verifiable affidavit disclosing all relevant facts and supported by suitable documentary evidence. The department may refuse an application for regularisation if the relevant contraventions are the subject of a current audit or investigation.
When evaluating these applications, the department will consider relevant factors that may include the circumstances and involvement of the applicant in the contravention, and the nature, extent and seriousness of the contraventions.
South African residents with unauthorised foreign assets who do not voluntarily approach the department for assistance may face the full force of the law. Where appropriate, the department is mandated to recover the full amount of the contravention.
Frequently asked questions
A stable financial system is one that efficiently manages the flow of funds through its financial intermediaries, markets and market infrastructures such that it promotes growth in its economic activities.
The term ‘micro prudential’ denotes the regulation or supervision of individual financial institutions by the PA. On the other hand, ‘macro prudential’ oversight refers to the responsibilities of the SARB, which is charged with identifying, assessing and mitigating risks for the financial system as a whole.
The financial system plays a critical role in supporting economic activity. Households and businesses need ways to save and borrow in order to fund consumption and investment; payment systems to facilitate local and international transactions; and insurance to manage their day-to-day risks. The public needs to be confident that banks, non-bank deposit takers and insurers can and will continue to provide these services, and that the payment and settlement systems will work as expected.
However, the financial system is exposed to risks, which come from a wide range of sources, both global and domestic. The South African financial system is also relatively small and open, and is dominated by a handful of institutions that are highly connected. The distress or failure of one of the major institutions is likely to have significant implications for the system as a whole.
With effect from 1 April 2018, when the PA was established, the Bank Supervision Department of the SARB ceased to exist. The resultant PA consists of the following four departments: the Financial Conglomerate Supervision Department; the Banking, Insurance and Financial Market Infrastructures Supervision Department; the Risk Support Department; and the Policy, Statistics and Industry Support Department.
In fulfilling its mandate to promote and enhance the safety and soundness of financial institutions, the PA is responsible for:
The PA is a juristic person operating within the administration of the SARB. It is not a public entity in terms of the Public Finance Management Act 1 of 1999. The PA is headed by a chief executive officer (CEO) who must be a deputy governor of the SARB but not the deputy governor responsible for financial stability. The CEO’s term of office is five years and the CEO is eligible for reappointment for one further term. The PA is governed by the Prudential Committee, which consists of the governor of the SARB, the CEO of the PA, and the deputy governors of the SARB. The Prudential Committee is mandated to oversee the management and administration of the PA to ensure that it is efficient and effective.
While, in general, South Africa has a modern and prudent financial sector that protects the interests of all customers and citizens, there are too many cases of abuse and exploitation in the sector and the sector still poses immense risks to the economy. Effective regulation will help make the financial sector more responsive to the needs of all South Africans.
The banking and insurance industries are particularly prone to being abused for financing terrorist activities. The PA therefore expects entities operating in these industries to utilise appropriate detection and sanction-screening tools and enhanced monitoring techniques to safeguard themselves against abuse.
In order to mitigate the risk of dealing with a sanctioned person or entity, supervised institutions are expected to screen all prospective clients and parties related to the client prior to entering into a business relationship with them. Examples of parties related to a client include natural persons purported to be authorised to establish a business relationship or to enter into a transaction with the supervised institution on behalf of a legal person; the ultimate beneficial owner of a company; members of close corporations; members involved in a partnership; trustees; and income and capital beneficiaries of trusts.
Details pertaining to sanctioned entities and persons are issued by the President of the Republic of South Africa, in government gazette notices, in accordance with section 25 of the Protection of Constitutional Democracy against Terrorist and Related Activities Act 33 of 2004. Once on-boarded, supervised institutions should sanction screen their clients and parties related to such clients on an ongoing basis thereafter when there are changes to the applicable sanction list(s). Furthermore, supervised institutions should have measures in place to sanction screen all cross-border payments prior to releasing such funds to the intended beneficiary/recipient.
Supervised institutions process large volumes of transactions on a daily basis, but lack the human resources to effectively review such transactions manually. In order to improve the capability to monitor client transactions and behaviour, the PA requires supervised institutions to utilise effective transaction-monitoring systems. A well-designed transaction-monitoring system is regarded as an essential component of an effective anti-money-laundering compliance programme.
The Financial Intelligence Centre, as administrator of the Financial Intelligence Centre Act 38 of 2001, as amended (FIC Act), is solely responsible for providing interpretation of, and guidance on, the provisions of the FIC Act.
Section 45B of the FIC Act empowers the PA to conduct inspections at supervised institutions. The purpose of an on-site inspection is to test supervised entities’ level of compliance with the FIC Act. Generally, supervised institutions receive a notification containing details of the scope of the inspection and information that needs to be supplied before the inspection takes place.
Section 45C of the FIC Act empowers the PA to impose various forms of administrative sanctions on supervised institutions found to be non-compliant with the FIC Act. When determining an appropriate sanction, the PA takes the following factors into account:
All electronic enquiries can be forwarded to SARB-PA@resbank.co.za. Please be aware that electronic messages sent directly to individual staff members within the PA might not be registered or processed.
No, the PA does not provide any AML/CFT training to supervised institutions.
Section 42 of the FIC Act places an obligation on supervised institutions to develop, document, maintain and implement a risk management and compliance programme (RMCP). The RMCP forms the foundation of a supervised institution’s efforts to comply with its obligations under the FIC Act on a risk-sensitive basis and must be reviewed by supervised institutions at regular intervals to ensure that it remains relevant to the institution’s operation and the risks identified. There is no requirement for the PA to formally approve a supervised institution’s RMCP.
The Banks Act gives the PA, through the SARB, the following powers in dealing with unregistered persons that are suspected of taking deposits from the general public:
Frequently asked questions
Most definitely. Members of the public are advised to check banknotes security features banknotes before accepting them.
Like any other surface that large numbers of people come into contact with, banknotes can carry bacteria or viruses. However, the risk posed by handling a banknote is no greater than touching any other common surface, such as handrails, doorknobs or credit cards.
No. The SARB only accept and exchange South African banknotes.
No, all circulation R5 coin retain their respective face value of R5 only. The SARB does not buy back currency from members of the public.
No, the SARB will never bay back these coins as they are circulation coins meant to circulate amongst members of the public.
No. circulation coins will always retain their respective face value irrespective of their date of issue.
A counterfeit note is an imitation produced without the legal sanction of the government. Producing or using counterfeit notes is illegal and a form of fraud.
This should in all instances, be reported to their nearest Police station.
No, counterfeit note have no value and cannot be exchanged for genuine banknotes.
Any information about counterfeit notes operation should be reported to the nearest police station.
A banknote is deemed mutilated when its condition requires special examination to consider the value, if any, to be paid. Such banknotes could be burnt, discoloured, decomposed, damaged with portions missing and/or contaminated.
Mutilated banknotes can be exchanged at a commercial bank branch where a member of the public holds an account. Alternatively they can be exchanged at the SARB Head office during weekdays.
Yes. All reproduction images of South African currency should be approved by the SARB before use.
No. Approval of reproduction is granted for a particular period only.
Yes. All approved reproduction should have "SPECIMEN".
Banknotes issued by the SARB but withdrawn from circulation. Meaning that members of the public cannot transact with these banknotes.
At a Commercial Bank where you hold an account or at the SARB Head Office in Pretoria.
No. old series banknotes retain their respective face value and cannot be sold for a higher value.
Dye-stained banknotes are banknotes that are stained by permanent inks used in currency protection systems or devices to secure banknotes in automated teller machines (ATMs), safes and during transportation of cash.
When a banknote is stained by the activation of the currency protection system or device, the staining ink penetrates the banknote and leaves traces which are normally more pronounced on the edges of the banknote and in some instances the banknote is completely saturated by the staining ink.
These banknotes are not fit for circulation and they cannot be replaced for value.
You should always refuse to accept dye-stained notes and notes that are not whole. Only accept clean banknotes and banknotes that are not damaged.
Frequently asked questions
The value of the R5 Mandela circulation coin remains R5-00. However, the gold Mandela coins forming part of the Natura series of gold coin are bought back by the SARB at the prevailing gold price.
The SARB will only pay for the gold content of Krugerrand, Protea or Natura series gold coin offered. The prevailing market gold price and dollar exchange rate are used to calculate the price offered for the coin/s on the day of selling. It should be noted that no premium is paid for the scarcity/collectability of any coin/s offered to the SARB. Authorised coin dealers or coin collectors are therefore more likely to pay a premium for collectable coins.
The SARB only pays for the gold content of the coins offered. However, proof coins can be sold to an authorised coin dealer or coin collector who might be willing to pay a premium for the coin based on scarcity and condition.
Unfortunately SARB do not have parking for the public. Clients can consider utilising the parking offered by the State Theatre and Sammy Marks Square as it is in close proximity of the SARB.
Gold coins can be purchased from an authorised coin dealer or the South African Mint. A list of accredited authorised gold coin dealers is published on the website of the South African Mint at the following link: https://www.samint.co.za/collectable-coins/authorised-dealers/
The prevailing market gold price and dollar exchange rate are used to calculate the price offered for the coin/s on the day of selling.
The SARB does not sell coins to the public. However, Krugerrands, Protea, and Natura series gold coins as well as a variety of other commemorative coins minted not only in gold can be bought from the SA Mint or an authorised coin dealer (link to SA Mint website with authorised dealers).
Clients need to present the gold coin/s to the gold coin teller at to the SARB Head Office in Pretoria with proof of residents, ID, and bank statement. Exact detail is provided on this webpage (link to website). It is important to note that the prevailing market gold price and dollar exchange rate are used to calculate the price offered for the coin/s on the day of selling.
The SARB buys Krugerrand, Protea series and Natura series gold coins from the public. However, it should be noted that the SARB will only pay for the gold content of each coin and no premium is paid for the scarcity/collectability of the coin. Authorised coin dealers or coin collectors are therefore more likely to pay a premium for collectable coins.