The draft regulations, published under Government Notice No. 54520 in Government Gazette No. 7375 on April 17, 2026, are intended to replace the Exchange Control Regulations of 1961. Treasury says the proposed reforms form part of a broader modernisation of how SA manages cross‑border capital flows. Public comments must be submitted by June 10, 2026.
According to Treasury, SA has followed a cautious approach to capital flows since the abolition of the financial rand in 1991, progressively recalibrating exchange controls in line with macroeconomic policy, while recognising the economy’s exposure to volatile flows and sharp exchange rate movements. In recent years, the Treasury and the SA Reserve Bank have reviewed the existing framework to better support growth and global integration while managing financial stability risks.
The draft regulations reflect what Treasury describes as a “positive bias” approach, shifting away from heavy reliance on transaction pre‑approvals and towards enhanced reporting, risk‑based surveillance of high‑impact and high‑risk transactions, and stronger action against illicit financial flows. Treasury says this approach aims to align the framework with international practice while using existing macroprudential tools to manage risks.
Key features include provisions that address gaps in the current rules, particularly on cross‑border crypto asset transactions, to complement regulation already overseen by the Financial Sector Conduct Authority and the Financial Intelligence Centre. Other proposed changes include updated definitions, transitional arrangements, administrative sanctions for regulated entities, increased penalties, clearer requirements for declaring foreign assets, and removal of restrictions on dealing in securities owned by non‑residents.
The draft also seeks to clarify rules affecting local businesses controlled from outside SA. Treasury says once finalised, the new regulations will be accompanied by updated manuals and transitional exemptions to support implementation, while retaining certain measures where necessary to protect the economy.
–ChannelAfrica–
