<\/p>\n
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\u2011border capital flows. Public comments must be submitted by June 10, 2026.<\/p>\n
<\/p>\n
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\u2019s 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.<\/p>\n
<\/p>\n
The draft regulations reflect what Treasury describes as a \u201cpositive bias\u201d approach, shifting away from heavy reliance on transaction pre\u2011approvals and towards enhanced reporting, risk\u2011based surveillance of high\u2011impact and high\u2011risk 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.<\/p>\n
<\/p>\n
Key features include provisions that address gaps in the current rules, particularly on cross\u2011border 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\u2011residents.<\/p>\n
<\/p>\n
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.<\/p>\n
<\/p>\n
–ChannelAfrica–<\/p>\n","protected":false},"featured_media":32086,"template":"","meta":{"_acf_changed":false},"news-type":[44],"class_list":["post-32644","news","type-news","status-publish","has-post-thumbnail","hentry","news-type-finance","entry"],"acf":{"short_description":"South Africa's (SA) National Treasury has published the draft Capital Flow Management Regulations, 2026, for public comment, marking a major step towards overhauling the country's exchange control regime for the first time in more than six decades.","published_date":"","news_description":"South Africa's (SA) National Treasury has published the draft Capital Flow Management Regulations, 2026, for public comment, marking a major step towards overhauling the country's exchange control regime for the first time in more than six decades.","form_embed":"","author":"","image_caption":""},"_links":{"self":[{"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news\/32644","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news"}],"about":[{"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/types\/news"}],"version-history":[{"count":1,"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news\/32644\/revisions"}],"predecessor-version":[{"id":32645,"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news\/32644\/revisions\/32645"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/media\/32086"}],"wp:attachment":[{"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/media?parent=32644"}],"wp:term":[{"taxonomy":"news-type","embeddable":true,"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news-type?post=32644"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}