Foreign-Currency Reserve Mandate and Repatriation Checklist

A foreign-currency reserve needs a written mandate: what it is for, how much may be held, where it is kept, how it earns or avoids income, and when money should return to South Africa. Without that record, “offshore cash” can become an indefinite and poorly evidenced holding.

Educational information only: This is not investment, exchange-control, tax or Shariah advice. Verify current requirements with authorised dealers and qualified professionals.

1. Define the reserve purpose

Record whether cash supports travel, education, offshore expenses, investment staging, emergency needs or currency diversification. Set a target time horizon.

2. Identify the owner and account

Capture legal owner, provider, custodian, account number, jurisdiction and currency. Distinguish personal and entity accounts.

3. Verify the provider

Check the bank, platform and intermediary through applicable official sources. Record the legal contracting entity and service provided.

4. Document the funding route

Retain authorised-dealer instructions, source-of-funds evidence, transfer confirmations and declarations. Reconcile the rand debit to foreign currency received.

5. Set the currency allocation

Record target currencies and maximum balances. Link each currency to expected expenses or a documented risk objective.

6. Review the account contract

Establish whether it is a deposit, money-market fund, custody account or another claim. Record who owes the balance and applicable protections.

7. Examine return and cash treatment

Capture how any profit, interest-like amount or fund distribution arises. Refer the exact structure and treatment to the qualified Shariah reviewer.

8. Check access and notice

Document withdrawal limits, notice periods, cards, beneficiaries and digital recovery. Test emergency access without sharing credentials.

9. Record fees and conversion costs

List account, custody, transfer, correspondent-bank and foreign-exchange charges. Reconcile gross and net movements.

10. Monitor currency risk

Report balances in both source currency and rand for household planning. Avoid presenting exchange gains as guaranteed investment return.

11. Define investment triggers

If cash awaits investment, record the decision threshold, authorised person and deadline. Review prolonged cash holdings against the original purpose.

12. Plan repatriation

Document who may instruct the transfer, destination account, evidence required and expected fees. Preserve the transaction chain.

13. Prepare tax records

Keep statements, exchange rates, distributions and ownership records for a registered tax practitioner. Foreign location does not remove South African reporting questions.

14. Coordinate estate access

Record provider death and incapacity procedures, document locations and professional contacts. Obtain cross-border estate advice where needed.

15. Maintain the reserve register

• Purpose, target and owner

• Provider, account and legal claim

• Funding and authorised-dealer evidence

• Currency, fees and Shariah treatment

• Access, repatriation and review date

Useful official starting points include the SARB Financial Surveillance Department, SARS individual guidance and the SARB deposit-insurance information.

The completed mandate should show why the cash exists, how it was funded, where it is held and the conditions for using, investing or repatriating it.