{"id":257346,"date":"2023-04-13T21:33:43","date_gmt":"2023-04-13T19:33:43","guid":{"rendered":"https:\/\/mypr.co.za\/?p=130737"},"modified":"2023-04-13T21:33:43","modified_gmt":"2023-04-13T19:33:43","slug":"what-does-greylisting-mean-for-sa-importers-and-exporters","status":"publish","type":"post","link":"https:\/\/www.myza.co.za\/press\/what-does-greylisting-mean-for-sa-importers-and-exporters\/","title":{"rendered":"What does greylisting mean for SA importers and exporters"},"content":{"rendered":"
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What does greylisting mean for SA importers and exporters: the advantage of using an intermediary for cross-border transfers<\/p>\n

On 24 February 2023, South Africa was placed on the list of \u201cJurisdictions under Increased Monitoring\u201d (i.e., the \u201cgrey list\u201d) by the Financial Action Task Force (\u201cFATF\u201d), along with Nigeria and 21 other countries.<\/p>\n

Annabel Bishop, chief economist at Investec, noted that \u201cThe purpose of greylisting by FATF is not to destroy or damage a country, and it is not intended to make the economic environment more difficult, prevent flows of monies in and out of borders or bring impediments to legal businesses. Many banks are indeed well placed to help clients with what will amount to likely extra paperwork and some delays.\u201d<\/p>\n

Richard Beddow, CEO of ForexPeople, points out that \u201cthe inevitable additional admin associated with cross border transfers (caused by the increased scrutiny that will now be applied to payments to and from SA) will be somewhat less frustrating when clients are using an FX intermediary, due to the higher degree of personal support and advice when compared to the online-platform and call-centre approach of commercial banks.<\/p>\n

FX intermediaries are fully regulated by SARB and FSCA, and provide solutions that facilitate forex transfers, and minimise risk through a hands-on service. This applies to both individuals and SME importers and exporters looking for more comprehensive support and advice offering.<\/p>\n

Now in its 20th year of trading, ForexPeople, one of SA\u2019s largest FX intermediaries, recently announced a new partnership with Investec. \u201cUp to now, we have focused purely on FX,\u201d says Beddow. \u201cNow, with Investec as a partner, we are able to offer our clients a broader product range that includes money market products and trade finance.<\/p>\n

By aggregating our 450-plus clients\u2019 FX volume, we are now in a position to source them the best rates from two banks (Capitec and Investec) and can leverage the relative strengths of each bank to the benefit of the client. For instance, the exchange-control team at Investec is very strong and is used to dealing with complex transactions. Our clients will also benefit from more diverse options, especially when it comes to tailored hedging, money market and finance products.\u201d<\/p>\n

Clients will still transact through ForexPeople as their single point of contact, cutting out the need to deal with multiple banking partners for their FX, money market and finance needs.<\/p>\n

20 years of high-touch service for SMEs<\/p>\n

FX intermediaries have been in existence for over 20 years, assisting individuals and SME importers and exporters not only with their FX transfers, but also in hedging against currency fluctuations. With FX markets having changed dramatically over that time, and in particular, with Banks increasingly pushing their clients towards utilising online platforms and call centres, coupled with increased Rand unpredictability, SME importers have sought more tailored support with regard to their FX dealings, including advice on how to protect their businesses against adverse forex market movements.<\/p>\n

\u201cNot only has the rand become more volatile, but SA businesses have increasingly switched away from manufacturing to importing finished products, driven mainly by challenges around electricity, labour, etc. \u2013 so these businesses now have a new business risk to manage.\u201d<\/p>\n

Protecting SMEs from currency volatility, ForexPeople fills the gap that was left when the banks urged their customers to transact online. \u201cThe move improved efficiency for simpler tasks, but when a customer needs advice or has a complex situation that they need to discuss, they run into difficulties,\u201d Beddow explains.<\/p>\n

The business is now looking after 450 to 550 companies\u2019 FX requirements every month, with 2022 being a record year, as more businesses looked for any marginal improvements, trying to get traction out of the \u201cCOVID period\u201d. These considerable volumes can be leveraged with the banks for better rates.<\/p>\n

ABOUT FOREXPEOPLE<\/p>\n

Established in 2003, ForexPeople is a Johannesburg-based, privately owned and managed, independent foreign exchange intermediary. It is regulated by the South African Reserve Bank, the Financial Services Conduct Authority (FSCA \u2013 FSP No. 35526) and the Financial Intelligence Centre.<\/p>\n

ForexPeople operates on a franchise model. There are 10 franchises between Gauteng and KZN that are 100% client facing, with the essential operations team in Johannesburg managing interaction with regulators, banks and other parties.<\/p>\n

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Source: MyPR.co.za<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

What does greylisting mean for SA importers and exporters: the advantage of using an intermediary for cross-border transfers On 24 February 2023, South Africa was placed on the list of \u201cJurisdictions under Increased Monitoring\u201d (i.e., the \u201cgrey list\u201d) by the Financial Action Task Force (\u201cFATF\u201d), along with Nigeria and 21 other countries. Annabel Bishop, chief […]<\/p>\n","protected":false},"author":1,"featured_media":257347,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","ngg_post_thumbnail":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[9021,1],"tags":[3257],"class_list":{"0":"post-257346","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-mypr","8":"category-south-africa","9":"tag-mypr","10":"entry"},"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/www.myza.co.za\/press\/wp-content\/uploads\/2023\/04\/what-does-greylisting-mean-for-sa-importers-and-exporters.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts\/257346","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/comments?post=257346"}],"version-history":[{"count":0,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts\/257346\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/media\/257347"}],"wp:attachment":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/media?parent=257346"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/categories?post=257346"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/tags?post=257346"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}