A transaction dealing with the in or outflow of capital from South Africa may require exchange control approval from the South African Reserve Bank (SARB). In order to prevent an agreement from being void or penalties being enforced, one must ascertain whether exchange control applies to a transaction.
Exchange control approval is required for, inter alia, dealings in non-resident owned securities and an outward transfer of capital by residents and the payment of royalties to non-residents offshore. Adams & Adams can advise client regarding exchange control requirements and implications, and can also assist with applications for exchange control approval. This would include the following:
- Investments and transfers offshore by individuals
- Inward investments
- License, distribution and agency agreements
- Cross border restructurings
- Reviewing transactions and agreements for compliance with exchange control regulations
- Transfer of assets