The definition of "retirement annuity fund" at section 1(x)(dd) permits emigrants to receive lump sum benefits only if they have been granted such status by the Reserve Bank. This requirement cannot be met by contributors who have never been exchange control residents of South Africa.
It is not uncommon for foreigners living and working temporarily in South Africa to contribute to a retirement annuity fund (RAF) since a deduction for this type of contribution is one of the few tax deductions still permitted. Such temporary residents would generally not become residents in terms of the exchange control regulations, and therefore do not need to apply for emigrant status with the Financial Surveillance Department. when they depart from South Africa. Emigrant status is a requirement to withdraw benefits from a RAF before retirement, and consequently these individuals find that their funds are trapped in South Africa (which is not ideal, given the depreciation of the currency). Treasury plans to remove this anomaly.