A recent article following an investment conference states: “Exchange Control shock: SA Treasury in the silent but violent move – just as warned!”. The closing conclusion in the article refers to “the effective scrapping of the R10 million investment allowance…”Firstly, there is no intention to scrap the R10 million foreign investment allowance.
Let us look at the facts and at this “terrible thing” that Sars and National Treasury have so unexpectedly sprung upon us. This is not a South African-specific trend. And no, it is not the SA government trying to get their grubby little paws on your money. It is global and it’s real!The Financial Action Task Force recently placed SA on the “grey list” which means various deficiencies were found in our anti-money laundering and terrorism financing policies and systems. If these deficiencies are not addressed and they worsen, SA will move to the “blacklist” which means global sanctions will be introduced against us.
Each one of the above-mentioned acts will be impacted and hold implications for every person who is linked to the respective sector. I strongly suggest that every individual who is a trustee, a beneficiary, a founder of a trust, a director of a company etc. etc. familiarise themselves with what they are required to do in terms of reporting and their obligations.