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foreign exchange services15/08/2013
It'll be to your advantage if payments in a foreign currency from abroad are converted to South African Rand (ZAR) by the sending bank before the money is paid. This simplifies the transaction.
We’ve been appointed as an authorised dealer in foreign exchange to provide the following services to individual clients only (business clients are specifically excluded):
- Issue debit cards to be used outside of South Africa
- Help clients receive money from abroad into their accounts
- Open accounts for foreign nationals who are on contract in South Africa
Using your Global One card abroad
You may only use your Global One card for travel-related expenses, and we may ask you for proof of travel. Refer to the Exchange Control Rulings on the South African Reserve Bank (SARB) website before using your Global One card abroad.
Before you travel or use your card for international online purchases, ensure that your personal details such as your contact numbers, permits and address are up to date on your Capitec Bank account as this information is compulsory for Balance of Payments reporting to SARB and your card may be suspended if the information is not available.
Restrictions on card usage
- South African residents over the age of 18 have a discretionary allowance of R1 million per calendar year, which includes a travel allowance
- South African residents under the age of 18 have a limited discretionary allowance of R200 000 per calendar year, which includes a travel allowance
You may only use your Global One card if you qualify as a South African resident, have a valid passport and a return ticket (which originated from South Africa) to South Africa. The abovementioned allowances are valid for one calendar year.
If you are temporarily employed in a foreign country you may only use the allowances described above in the calendar year of your departure. Should the maximum allowance not be used on departure, the balance may be taken during the same calendar year.
Local debit cards may not be used while temporarily employed abroad, unless specific approval is granted by the Financial Surveillance Department of SARB.
Supplementary Global One cards can only be used in South Africa.
Common Monetary Area (CMA) clients – South Africa, Lesotho, Namibia and Swaziland – can only use their debit cards in South Africa.
Foreign lottery tickets and gambling activities
You may not use your Global One card for buying foreign lottery tickets or gambling activities as this is prohibited in terms of current Exchange Control Rulings.
The SARB rule prohibits clients from using their Global One cards abroad as follows:
"Residents may not participate in lotteries organised abroad, as such participation contravenes the Lotteries Act, 1997 (Act No. 57 of 1997).
In terms of the National Gambling Act, 2004 (Act No. 7 of 2004), as amended by the National Gambling Amendment Act, 2008 (Act No. 10 of 2008), residents may not participate in any gambling activities not authorised in terms of the aforementioned Act.
Residents may not use their credit and/or debit cards in South Africa to facilitate payments for the abovementioned purposes, and in addition all issuers of American Express, Diners Club, MasterCard and Visa cards, may not accept such debits against resident cardholders' accounts in respect of the payment for foreign lottery tickets or gambling activities."
Foreign exchange trading accounts
Funding of international forex trading accounts through the Internet, directly or through an intermediary, with your Global One card is not permissible.
Any funding of forex trading accounts can only be done in terms of Exchange Control Rulings before the money was transferred abroad or it will be subject to approval by the Financial Surveillance department of SARB when it is returned to South Africa.
Restrictions on payments to Capitec Bank accounts
Certain types of transactions in terms of our policy and exchange control cannot be accommodated and others have conditions.
Preapproval is needed from SARB for the introduction of a foreign loan before the money is paid to South Africa. Only authorised dealers who have been authorised to deal in foreign currency can submit these applications to SARB.
We cannot facilitate or receive payments for imports and exports or related transactions.
Funding international forex trading accounts through the Internet with your Global One card is not permissible in terms of Exchange Control Rulings and any proceeds received from such accounts will be subject to approval by the Financial Surveillance department of SARB. The timeframe for the applications to SARB is approximately 6 – 8 weeks (and costs R885 – R1 500).
Clients who use our salary transfer facility for bulk salary transfers may not use their accounts for any international transactions. All transactions received in favour of salary transfer clients will have to be returned. Ensure that the transfers are done to authorised dealers who have been authorised to process these payments.
Please do not send these payments to your Capitec Bank account.
We do not pay money abroad.
International payments to Capitec Bank accounts
The SWIFT BIC for Capitec Bank is CABLZAJJ.
We may not receive international payments directly from banks outside South Africa. When a payment is made from outside South Africa to a Capitec Bank account, the foreign bank will need to make the payment through its rand correspondent bank in South Africa, normally Absa, First National Bank, Nedbank or Standard Bank who in turn will forward the credit to us. We are not authorised to trade in foreign currency and as such may not negotiate any conversion rates. The correspondent bank will automatically convert the foreign currency on receipt and transfer the rand value to us.
The Balance of Payments category must be confirmed with you before the money can be credited to your account. This confirmation can only be confirmed with the accountholder; therefore, supplementary cardholders or holders of a power of attorney may not make the declaration on behalf of the accountholder.
When the paying bank completes the payment message they must use the “CABLZAJJ” code to identify Capitec Bank as the destination bank. It is important that CABLZAJJ must be populated in field 57A (“Account with Institution”) by the paying bank. This means that any bank that’s part of the “chain” to transfer the money will then know the money must be sent to Capitec Bank in South Africa.
The paying bank may also ask for an IBAN number. South Africa does not use IBAN numbers but if the sending bank insists on an IBAN number, you can use your Capitec Bank account number (e.g. 1234567890) and the Capitec Bank branch code (always 470010) to create a number that can be used as a substitute for the IBAN. For example: the substitute IBAN could be 1234567890470010.
If you are expecting money from abroad or you will be sending money from abroad to your own account, please ensure that you have updated your contact details, including an email address if available. If we cannot contact you within 30 days, the money will be returned to the sender. To update your details, visit your nearest Capitec Bank branch.
Balance of Payments
According to SARB’s Exchange Control Regulations, any money received from abroad must be declared before it may be credited to your account. The declaration of the money can only be made by the accountholder before the account is credited and not by a third party, so supplementary cardholders or holders of a power of attorney may not make the declaration on behalf of the accountholder.
All clients receiving international payments must ensure that their personal information is up to date on the bank’s records; this includes address information, contact details and permit numbers. The information is compulsory for the Balance of Payments reports and will also reduce delays in processing the inward payments.
In terms of current Exchange Control Rulings, international payments may not be processed without the client’s declaration of the money. The declaration can be done in person or by means of either of the following forms:
- Integrated Balance of Payments form for once-off payments
- Standing Instruction and Indemnity form for regular payments
Information on completion of the forms
SARB implemented the more comprehensive Financial Surveillance (Finsurv) System for Balance of Payments reporting in August 2013. This added new categories to the Integrated Balance of Payments form and the Standing Instruction and Indemnity form.
- Fill in the form as accurately and in as much detail as possible to comply with Exchange Control Rulings and to prevent payments being returned due to incorrect or insufficient information
- It’s very important that the money coming in is declared correctly and that the information you provide is up to date and accurate as this information will be used to declare the incoming payment to SARB, the South African Revenue Services (SARS) and the Financial Intelligence Centre
ALL fields are mandatory unless otherwise indicated.
Beneficiary’s Details section
- The bank cannot accept the form if the details provided don’t match the details we have for you on our system
- Ensure that your residential address and contact details (including email address) are up to date on our system
- If your personal details have changed, visit your nearest branch with an original proof of residential address and an identification document to update them
Sender’s Details section
- Ensure that the details are correct. This information must match the payment instruction; if it doesn’t, the payment cannot be processed according to the form and may be returned should we be unable to contact you telephonically
- The full name and surname of the sender of the money must be filled in. If the sender is a company or entity, the full name should be filled in. The residential or business address is not mandatory but should be indicated if the information is available
- The country from where the money is being sent MUST be indicated in the Country field. We cannot accept the form unless this information has been filled in
- Indicate whether the sender is a South African resident or not
Balance of Payments Category section
- Choose a category from the list that best describes the reason for the payment. Fill in the Category field (and Subcategory field if applicable). The form may not be accepted if this information is incomplete
1. Salary (“Compensation”)
This category refers to payments received by South African residents working abroad whose salary is paid by their employer. Salary or compensation payments from a foreign employer not based in the Common Monetary Area (CMA) – South Africa, Lesotho, Namibia and Swaziland – to your Capitec Bank account must be declared using category 303. Salary or compensation payments from a foreign employer based in the CMA to your Capitec Bank account must be declared using category 305.
2. Payments from your own international account to your Capitec Bank account
The following categories apply to payments sent from a spouse, parent or family member working abroad as financial support, living expenses, school fees, family maintenance or debit order payments. Note that the sender must be a South African resident and the money must be earned abroad:
- Payments from your own international account (not based in the CMA) for your debit orders, savings or debt payments in South Africa if temporarily employed abroad – use category 417
- Payments from your own international account (based in the CMA) for your debit order, savings, account or debt payments in South Africa if temporarily employed abroad – use category 416
Category 401 must be used to declare gift payments from non-residents. The Standing Instruction and Indemnity form can only be filled in for gift payments where the same amount (in ZAR or foreign currency) is received on a monthly/fortnightly/quarterly basis. The Amount, Frequency and End Date fields must be filled in.
Category 308 may only be used if the beneficiary is receiving rent from a non-resident tenant who is renting the property either in South Africa or abroad. This category may not be used for a South African resident working abroad and transferring money to pay the rent or bond, or for a South African resident receiving a payment from a non-resident to help them pay rent locally.
Pension payments are now category 407.
Alimony and maintenance refers to child support – use category 410.
These are now declared as category 307.
If you receive money from abroad, we will contact you for the payment reason and other related information to complete the transaction. You will need to complete the Integrated Balance of Payments form. Download, print and complete the form; then email the completed form to email@example.com or fax it to 0860 88 88 15.
If you're going to be receiving money regularly for the same reason (i.e. salary) from abroad and wish to have this money credited to your account automatically, complete the Standing Instruction and Indemnity Form. Download, print and complete the form; then email the completed form to firstname.lastname@example.org or fax it to 0860 88 88 15. The Standing Instruction form remains valid until you have cancelled it in writing.
The local correspondent banks facilitate payments to our clients from abroad. These payments, where necessary, will be converted to rand before being deposited. Capitec Bank is responsible to submit the Balance of Payments report on your behalf to SARB for the international transactions.
Payments received in foreign currency
All foreign currency denominated payments will be converted into rand when money is received at the telegraphic transfer buying rate of exchange as quoted by relevant correspondent bank’s system at the time of processing.
Payments template for sending foreign currency to Capitec Bank clients
The bank or person paying money into your Capitec Bank account must make a SWIFT payment to one of the local correspondent banks for further credit to Capitec Bank. The payment requires specific information, which is indicated below.
The foreign bank must use the local bank’s SWIFT code in the Receiver and Intermediary Institution fields and Capitec Bank’s SWIFT code (CABLZAJJ) only in the Account with Institution field to reduce the risk of delayed and returned payments. The money must preferably be paid in South African Rand (ZAR).
Ensure that we have your latest contact details. If we can't contact you within 30 days, the money will be returned to the sender. Costs for the return of money will be for the sender’s account. To update your details, visit your nearest Capitec Bank branch. See the table below for more information and an example of the proposed SWIFT message.
|SWIFT field||Payment info|| Specific details to be inserted in the payment message received if processed by us |
|Sender||Sending bank's BIC code|
SWIFT code for rand correspondent bank in SA (e.g. NEDSZAJJ if Nedbank is used)
|Message text|| |
|20||Transaction reference number|
|23B||Bank operation code|
|32A||Value date, currency code, amount|
|50K||Ordering client||Payer's account number, name and address|
|56||Intermediary institution|| |
|57A||Account with institution||CABLZAJJ|
|59||Beneficiary client||Capitec Bank's client account number, name and full address|
|70||Remittance information||Reason for payment (e.g. gift, allowance, etc.)|
|71A||Details of charges|
The cost associated with payments from abroad will be deducted by the processing bank(s) from the value received before it is credited to your account (the beneficiary) unless otherwise indicated in the payment instruction.
Fees for international payments cannot be determined or quoted before the payment being received due to the number of other banks that might be involved to make the payment to Capitec Bank.
We will levy an R80 administration fee to process the inward SWIFT transfer and Balance of Payments report to SARB.
Certain Balance of Payments categories may require that the Financial Surveillance department of SARB give their approval and authorisation in terms of Exchange Control Rulings before such transactions and/or payments may be executed. The timeframe for the applications to SARB is about 6 – 8 weeks and costs R885 – R1 500 to process, payable in advance.
Since we depend on a number of banks to process these international payments, we can't guarantee the exact clearing times.
Payments from abroad normally take 3 – 7 working days from the time that the money is sent. If the sender or the foreign bank provides the authorised dealer in South Africa with too little account information, the transaction will take longer and could even be returned.
It is important that our SWIFT code (CABLZAJJ) be included in field 57A of the SWIFT message as this helps automate the processing of the payment. If it's not included, the payment could get lost and may incur an additional cost because the other bank will need to correct it manually.
Bank accounts for foreign nationals
If you are from a country outside South Africa or CMA and you want to open a Capitec Bank account, we can help you under either of the following conditions:
- You have a permanent residence permit with a work permit and are employed
- You have a temporary residence permit with a work permit and are employed
Ensure that your personal contact details and permit details are updated regularly. If we can't contact you, your account could be placed on hold which means that you will not be able to do any transactions. To update your details, simply visit your nearest Capitec Bank branch with your new permit and/or passport.
- If you have a temporary residence work permit, you may only hold an account for the duration of the validity of your temporary residence permit
- Upon renewal of your temporary residence permit, your personal and permit information must be updated for you to continue being a Capitec Bank accountholder
- Clients from Lesotho, Namibia and Swaziland may only transact within the Common Monetary Area and are subject to their home country's Exchange Control Regulations