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.