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The long-anticipated relaxation of the South African Exchange Control Rules relating to “loop” structures and investment was released on the 4
th of January 2021 by the South African Reserve Bank under Exchange Control Circular No. 1/2021. The “loop” structure and investments restriction were lifted to promote inward investments into South Africa, subject to the normal criteria applying to inward investments and reporting to the Financial Surveillance Department (FinSurv).
What is a “loop” structure?
In simple terms a “loop” structure are generally created by a South African resident individual, trust or company transferring authorized or unauthorized funds from South Africa to, for example, set up a foreign trust or foreign company. The foreign trust or company would then directly or indirectly (via another o
The long-anticipated relaxation of the South African Exchange Control Rules relating to loop structures and investments (By Chido Pamela Mafongoya)
The loop structure and investments restriction were lifted to promote inward investments into South Africa
JOHANNESBURG, South Africa, January 28, 2021/APO Group/
The long-anticipated relaxation of the South African Exchange Control Rules relating to loop structures and investment was released on the 4
th of January 2021 by the South African Reserve Bank under Exchange Control Circular No. 1/2021. The loop structure and investments restriction were lifted to promote inward investments into South Africa, subject to the normal criteria applying to inward investments and reporting to the Financial Surveillance Department (FinSurv).
Content provided by Last updated: 28/01 - 14:40
The long-anticipated relaxation of the South African Exchange Control Rules relating to “loop” structures and investment was released on the 4
th of January 2021 by the South African Reserve Bank under Exchange Control Circular No. 1/2021. The “loop” structure and investments restriction were lifted to promote inward investments into South Africa, subject to the normal criteria applying to inward investments and reporting to the Financial Surveillance Department (FinSurv).
What is a “loop” structure?
In simple terms a “loop” structure are generally created by a South African resident individual, trust or company transferring authorized or unauthorized funds from South Africa to, for example, set up a foreign trust or foreign company. The foreign trust or company would then directly or indirectly (via another offshore entity) invest the authorized o