As an authorised dealer in foreign exchange, we are required to report all cross-border customer transactions to the South African Reserve Bank (SARB). This is a regulatory requirement that underpins licences for all South African authorised dealers. As such, we have been complying with the current version (BOPCUS v2) of the reporting requirement.
SARB has published the new version of the balance of payments (BOP) reporting requirements for customer transactions (BOPCUS v3) and have set 16 August 2013 as the implementation date for the industry. While we aim to minimise the impact of these changes on you, some of them are likely to have an impact. For some customers, the impact might also involve system changes. The sections below summarise the proposed BOPCUS v3 changes.
How does BOPCUS v3 compare with BOPCUS v2?
New transactions for reporting
BOPCUS v3 introduces previously deferred payments (resident to non-resident domiciled accounts in rand) and places inter-bank and CMA transactions on the radar as well. The inter-bank transactions, although still under negotiation with SARB, have been included in the scope for BOPCUS v3 but with an implementation date of April 2014. The CMA transactions that we are currently not reporting are deferred to 2014.
BOP category changes
In an attempt to align with International Monetary Fund (IMF) standards, SARB has introduced significant changes to the BOP categories. These changes present a large communication and change management challenge due to the entrenched nature of these codes within our staff and our customers’ knowledge bases. The biggest issue with this alignment is that codes previously used for categories could be invalid tomorrow or may apply to other categories. For example, BOP Category 401 currently refers to Dividends but in the new alignment BOP Category 401 refers to Gifts. Dividends will now use the new BOP Category 301.
The introduction of sub-categories further complicates the required change management initiatives for both our customers and internal staff. For example, reporting on fees for processing done on materials will have the following sub-codes:
Click here to view BOPCUS Inward Categories and Outward Categories.
The schema changes introduce new data fields and changes to current data fields. You may also have to give additional information. The layout has also changed to comply with the new codes.
Introduction of new BOP forms
All current balance of payments forms have been aligned to BOPCUS v3 reporting requirements. From 19 August 2013 these forms are mandatory to process transactions. Note that old forms will be rejected and cause unnecessary delays in transactions.
Click here to view the BOPCUS forms.
Standing Settlement Instruction
Standing Settlement Instruction (SSI) application forms have been updated to include the new BOP categories and sub-categories. Please complete and sign the updated SSI form. Signed SSIs must be scanned and emailed toTPSStandingSettlementInstructions@standardbank.co.za or faxed to 011 631 4631.
Existing SSIs for Inward Telegraphic Transfers (ITTs) refer to the BOPCUS v2 categories and will be invalid from 19 August 2013.
Click here to view Standing Instructions Forms.
Future dated payments - Cautionary note
Future dated payment instructions loaded in the 30-day window from 15 July to 16 August 2013 that are not processed before 16 August 2013, or has a value date beyond 16 August 2013 will have to be processed according to the new BOPCUS v3 requirements. As a result, there could be delays in payment.
Suggested process for urgent payments
Please ensure that urgent payments are processed before 16 August 2013 with the required supporting documents or held back to be processed from 19 August 2013 onwards.
If you have any questions about the Balance of payments changes or would like more information, please contact the dedicated BOPCUS Helpdesk or your Standard Bank representative.
Telephone: 0860 333 889
All information on the BOPCUS v3 changes, new forms and the new BOP category code documents are available on the BizConnect webpage http://bizconnect.standardbank.co.za/2563.aspx.
Please note that category lists and forms were correct at the time of publication. Category lists and forms are subject to change at any time without notice. Standard Bank is not liable for any inaccuracies.