CROSS-BORDER CAPITAL FLOW MANAGEMENT: DRAFT REGULATIONS OUT FOR COMMENT

CROSS-BORDER CAPITAL FLOW MANAGEMENT: DRAFT REGULATIONS OUT FOR COMMENT

• 17 April 2026
• Financial Sector
• SA Legal Academy

Input is sought on draft capital flow management regulations prepared under the 1933 Currency & Exchanges Act. Once finalised ad in effect, they will repeal the 1961 regulations.

Clarity is needed on the deadline for public comments, which is 10 June 2026 according to an accompanying media statement – but 17 May 2026 according to the Government Gazette notice concerned, which provides for a 30-day commentary window.

Among other things, the statement underscores the proposed new regulations’ ‘positive bias’ approach to managing cross-border capital flows through:

• fewer transaction pre-approvals
• a focus on reporting
• the surveillance of high-impact and high-risk cross-border transactions, and
• the combating of illicit financial flows.

Announced in the 2026 Budget speech, once operationalised the new regulatory framework for capital flown management now envisaged will ‘align South Africa with international best practice … using a risk-based approach and existing macroprudential tools’. In that regard, the Government Gazette notice expressly refers to recommendations made by:

• the Organisation for Economic Co-operation & Development, and
• the international Financial Action Task Force.

‘Key features’ listed in the media statement include:

• ‘the removal of restrictions on dealing in securities belonging to non-residents’, and
• measures to ‘address uncertainty regarding local businesses controlled from outside of South Africa’.

With the aim addressing risks associated with emerging financial instruments and ensuring the required level of oversight, it is proposed that crypto-assets should be brought ‘within the ambit of (the) exchange control framework’. This is according to the Government Gazette notice, which also notes provisions:

• clarifying ‘exemptions, permissions and conditions’, and
• imposing administrative sanctions for non-compliance.

Please click the links below for more information:

• draft regulations
• media statement
• Government Gazette notice

Published by SA Legal Academy Policy Watch

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