The South African foreign exchange market is governed by the South African Reserve Bank (SARB) and Exchange Control Regulations.
Each and every remittance or foreign exchange transaction into and out of South Africa needs to be reported into the Reserve Bank cross-border reporting system.
The Reserve Bank has authorised certain banks to be able to transact in foreign exchange and these banks are called 'Authorised Dealers'. These Authorised Dealer banks are required to record and report all in and outflows into the Reserve Bank and ensure that this data is reported to the SA Reserve Bank under the correct 'Reporting Category'.
These Reporting Categories are used by National Treasury to monitor the Current Account and the components thereof.
This reporting process is still a manually driven process and the banks require senders and recipients to sign manual Balance of Payment forms to support these foreign exchange transactions, and this data is then captured into the Reserve Bank reporting system.
It is for this reason that South African banks charge receiving fees when money is sent into South Africa from overseas.
A receiving fee is charged to the recipient in South Africa of between R120 and R700 depending on the size of the money transfer coming into South Africa.
This is a South African bank receiving fee represents a very high cost that needs to be taken into account when sending money into South Africa however this fee is not charged by Exchange4free at all and we cover this inbound receiving fee.
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