South Africa’s National Treasury and the South African Reserve Bank have published draft Capital Flow Management Regulations of 2026 for public comment, proposing to replace the Exchange Control Regulations of 1961 and modernise the framework for managing cross-border capital flows. The draft reflects a shift to a ‘positive bias’ approach with fewer transaction pre-approvals, greater reliance on reporting, and risk-based surveillance of high-impact and high-risk cross-border transactions, alongside efforts to combat illicit financial flows. The proposal addresses gaps in the current regime, including the treatment of cross-border crypto asset transactions, intended to complement existing regulation by the Financial Sector Conduct Authority and the Financial Intelligence Centre. It also introduces new and amended definitions and transitional arrangements, provides for administrative sanctions on regulated entities and increased penalties, clarifies the declaration of foreign assets, removes restrictions on dealing in securities belonging to non-residents, and seeks to resolve uncertainty around South African businesses controlled from outside the country. Public comments are due by 10 June 2026, after which National Treasury and the South African Reserve Bank will consider submissions and make revisions where necessary ahead of promulgation. Implementation is expected to be supported by updated manuals and transitional exemptions, with certain measures potentially retained.
South African Reserve Bank 2026-04-17
South African Reserve Bank and National Treasury open draft Capital Flow Management Regulations for comment to replace Exchange Control Regulations of 1961
South Africa’s National Treasury and Reserve Bank have issued draft Capital Flow Management Regulations of 2026 for comment, to replace the 1961 Exchange Control Regulations and modernise cross-border capital flow management. The draft introduces a ‘positive bias’ approach with fewer pre-approvals, enhanced reporting and risk-based surveillance, addresses gaps such as cross-border crypto asset transactions, and provides for new definitions, transitional arrangements, administrative sanctions, higher penalties, and clarified rules on foreign assets and non-resident securities.