Exchange Control Contraventions – What To Do?

From time to time, inadvertent exchange control contraventions crop up and it is important for the relevant parties to assess the implications and the potentially serious consequences of the contravention.

The legislative framework in this regard can be found in the Exchange Control Regulations, 1961 ("Regulations") which were issued in terms of the Currency and Exchanges Act, 1933. Although it does not have the force of law, the Currency and Exchanges Manual for Authorised Dealers, published by the South African Reserve Bank ("SARB"), provides the practical framework and significantly more detail in terms of which Authorised Dealers (ie most commercial banks) should apply the Regulations.