All you need to know about the SARB Reporting Mandate
Around two-thirds of South Africa’s GDP comes from consumer spending — hence, price control becomes detrimental to economic growth. Also, the fact that the South African Rand is highly tradable makes it necessary to have certain economic checks in place, to avoid any sort of discrepancies or sudden imbalances.
Currently, the South African Authorities are engrossed in finding ways to deal with GDP Contractions, and the SARB Reporting Mandate is likely to play a pivotal role in it. This document informs the South African Authorities about foreign exchange entering the nation, and also cites the reason for it, which further ensures that the transaction is legitimate. This mechanism confirms better economic governance and increased control over foreign exchange.
So, to ensure balanced and sustainable growth and development in South Africa, the South African Reserve Bank — South Africa’s apex bank recently rolled out the South African Reserve Bank (SARB) Reporting Mandate. The news of the ‘Reporting Mandate’ and the surrounding political battle in South Africa has been making headlines, worldwide.
In the meantime, anyone desirous of sending money to South Africa faces yet another battle — the confusion about the reporting mandate. Below listed are some essentials of the Reporting Mandate, to help our clients decipher this new policy.
Who needs to fill out the SARB Reporting Mandate Form?
The recipient of foreign exchange in South Africa needs to fill out the SARB Reporting Mandate form. The SARB Reporting Mandate Form is an online form or document that all recipients in South Africa need to fill out, before the settlement.
How often should the Recipient fill out the SARB Reporting Mandate Form?
The SARB Reporting Mandate Form needs to be filled out every year, by the recipient. So, filling the SARB Reporting Mandate is an annual requirement.
How does the SARB Reporting Mandate affect the Sender?
If you are sending money to anyone in South Africa, then the recipient will only be able to receive the money if he or she has duly complied with the SARB Reporting Mandate and its requirements. So before making any sort of commitment, you must consider confirming with the recipient, whether or not, he or she has already complied with it.
How long does it take for the recipient to receive the money in South Africa?
The transfer may take one working day or may be done the very same day, depending on the status of the recipient’s compliance of the SARB Reporting Mandate. In case the recipient has not complied with SARB but does so, upon receiving a transfer, then it would take one working day for the transfer to be completed. However, if the recipient has previously complied with the SARB Reporting Mandate, then the transfer takes place on the same day.
What details are required to send money to someone in South Africa?
Name - Ensure that the name of the recipient is the same, as mentioned in his or her bank account. For a hassle-free transaction, verify the details beforehand.
Bank Account Details - You need to provide us with the bank account number, bank name and also specify the branch name.
Location - Recipient’s Province and City should be mentioned.
Mobile Phone Number - To inform the recipient about the transaction, you need to clearly mention his or her mobile number.
Reason for the Transaction - You need to clearly specify the reason for the transfer.
SARB Reporting Mandate Compliance - To help you complete the transaction successfully, we always go that extra mile. So if the recipient has not completed the SARB Reporting Mandate, then our channel partner in South Africa would duly send over SARB Reporting Mandate Form’s link via automatic email.
South African economy seems to be declining on all ends, except for the finance sector — something that the country seems to have its hopes on. The South African mining industry has seen a 10.8% decline, while the manufacturing industry went down by 8.8% and the agriculture sector declined by 13.2%. However, the finance sector was up, but only by 1.1%. After the decade-long economic contraction, the South African Reserve Bank is taking all the necessary measures to control inflation and implement better price control strategies. This becomes essential and controlling the inflow of foreign currency is definitely a good move, by the South African Authorities.