Draft Capital Flow Management Regulations: Comments Invited

Posted 17 April 2026 Written by Acts Online
Category Financial Sector

Brought to you by SA Legal Academy: National Treasury has published draft capital flow management regulations for public comment, proposing a transition from the 1961 exchange control regime to a modern, risk-based framework.

In terms of the Currency and Exchanges Act, No. 9 of 1933, the draft regulations are intended to repeal and replace the Exchange Control Regulations, 1961. This regulatory shift, first signaled in the 2026 Budget speech, aims to align South Africa with international best practice through a “positive bias” approach and the use of existing macroprudential tools.

Stakeholders should note a discrepancy regarding the deadline for public comments. The accompanying media statement lists 10 June 2026, whereas the Government Gazette notice provides for a 30-day window, effectively setting the deadline at 17 May 2026. Submissions should be directed to National Treasury within this timeframe to ensure consideration.

Key Regulatory Features

The proposed framework introduces several significant changes to the management of cross-border capital flows, including:

  • The formal inclusion of crypto-assets within the ambit of the exchange control framework to ensure oversight of emerging financial instruments.
  • A transition to a risk-based methodology for managing cross-border transactions rather than a purely restrictive regime.
  • Alignment with recommendations from international regulatory bodies to enhance financial system integrity and transparency.
  • Provisions for administrative penalties and enhanced enforcement mechanisms as detailed in the Government Gazette notice.

What this means for you, your business, or your clients

  • For yourself: You must review the draft regulations to understand the transition from the 1961 prescriptive regime to the new risk-based model, as this affects the legal interpretation of compliance for all cross-border transactions.
  • For your business: Compliance officers must prepare to update internal manuals, reporting protocols, and transaction monitoring systems to accommodate the “positive bias” framework and new oversight requirements.
  • For your clients: Clients engaged in crypto-asset transactions must be advised that these activities will now be subject to formal exchange control oversight, requiring specific compliance and reporting for all cross-border flows.

Originally published at https://legalacademy.co.za/news/read/cross-border-capital-flow-management-draft-regulations-out-for-comment

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