SA Trusts can now distribute to offshore trusts

PJ Botha • September 4, 2025

For a long time, the South African Reserve Bank (SARB) prohibited money from being transferred directly from local trusts to offshore trusts. 
You may have had offshore exposure in your local trust through asset swops and other investment vehicles, but if you want to distribute to overseas beneficiaries, you must first withdraw funds from the trust and then transfer to them through the SARB.


This recently changed. SARS declared that beginning August 1, 2023, it will evaluate and possibly approve petitions to transfer funds from South African trusts to offshore trusts. This adjustment coincides with the South African Reserve Bank's (SARB) recent relaxation of several currency control regulations. 
While this new alternative provides numerous prospects, there are tight criteria and a thorough application process. If you are an investor or trustee, you must understand these requirements. 
There is certainly no one-size-fits-all answer, and the drawbacks and benefits should be examined while deciding.

 
 Drawbacks: 
1. Complex Regulatory Requirements. 
• Strict compliance required: The procedure is extensive, necessitating meticulous documentation and adherence to both SARS and SARB regulations. 
• Long approval process: Each application is assessed individually, which can take weeks or even months.
 

2. Cost • Legal, tax, and accounting assistance can be costly. 
• Administrative burden: Extensive documentation and regular reporting increase management time and expenses.
 

3. Tax obligations 
• The South African trust must pay all relevant taxes (capital gains, dividends, etc.) before distribution, preventing tax deferral to the recipient. Money held in a trust is often taxed at a higher rate than money held in the name of a company or individual.
 

4. Uncertainty and Evolving Practice 
• New regulations may impact future distributions and compliance needs. 
• Disputes: Failure to meet SARS or SARB rules may result in delayed or refused distributions.
 
Benefits:
1. Global Wealth Diversification. 
Offshore trusts may provide superior asset protection during political or economic volatility in South Africa.
 
2. Succession and Estate Planning 
• Multi-Jurisdictional Estate Planning: This allows families with members living in different countries to structure their affairs more efficiently. 
• Offshore trusts facilitate the transfer of money to beneficiaries outside South Africa, simplifying inheritance processes.
 

3. Tax preparation 
• Offshore trusts can optimise worldwide tax positions with proper preparation and professional counsel, but must follow all applicable requirements.
 
4. Regulatory Clarity 
• Official Approval: SARS and SARB now provide clear protocols for trustees and investors, eliminating legal risks.
 
The ability to transfer money from a South African trust to an offshore trust is a useful tool for global estate and investment planning. Professional guidance is essential to maximise benefits and avoid pitfalls.

South Africa has been removed from the Grey List.

By PJ Botha • October 30, 2025
South Africa has officially been removed off the Financial Action Task Force's (FATF) grey list as of October 24, 2025. This comes after 33 months of work to strengthen the country's anti-money laundering and counter-terrorism systems. Why Was South Africa Grey Listed in the first place? In February 2023, the FATF placed South Africa on the grey list due to weaknesses in its ability to enforce anti-money laundering regulations. These included ineffective investigations and prosecutions, particularly in severe money laundering and terrorist financing cases. To get off the list, South Africa needed to accomplish 22 action items. By June 2025, the FATF reported that all items had been handled. Although some areas, like as prosecutions, require improvement, this did not prevent the country from being removed from the list. What is the Function of the Financial Intelligence Centre (FIC)? The Financial Intelligence Centre helped South Africa achieve FATF regulations. It enhanced how it oversees businesses and professions that deal with money but are not banks, employing stronger risk assessment tools and compliance measures. The FIC also collaborated extensively with law enforcement, promoting the use of financial intelligence in investigations. This resulted in genuine results, such as the freezing of approximately R157 million in suspected illegal funds and the recovery of nearly R144 million in stolen money. What impact did the listing have on the Economy and Investments? Being on the Grey List increased the cost and complexity of foreign transactions. It also harmed investor confidence, particularly while South Africa holds the G20 presidency in 2025. Financial experts predict that now that the country is no longer on the list, investor sentiment will improve. According to PPS Investments, this may lead to: Improved access to global capital. A stronger Rand. Increased interest in South African stocks A better climate for the local property markets. This change contributes to a more favourable view for South Africa's economy and investment landscape. How do South Africa compares to other countries that was grey listed? South Africa's 33-month stint on the grey list is comparable to other countries. Tanzania required 33 months, Nigeria 25 months, Mozambique 37 months, and Burkina Faso 57 months. What's next? South Africa is already planning for the next FATF mutual evaluation, which is scheduled for 2026-2027. The FIC states that, while leaving the grey list is a significant step forward, the country must continue to improve its mechanisms for combating financial crime.

What Will You Do Every Day in Retirement?

By Francois Le Clus • October 30, 2025
Have you ever stopped to ask yourself: What will I actually do every day when I retire? It sounds like such a simple question, yet very few people think about it in a practical way. You might have a plan for your finances, but have you thought about your time? Will your days be filled with purpose and activity—or will you find yourself just sitting around, wondering what to do next? From my experience working with retired clients, people tend to go one of two ways: they either become passive or they stay active and engaged. When you first retire, the main concern is usually financial. Will my money last for the rest of my life? But after a few months, that anxiety often fades, and a new question emerges: What is my purpose now? I recently read a remarkable book by Bob Buford called Halftime. Buford was extremely successful financially, but tragedy struck when he lost his son. That loss made him reflect deeply on what truly mattered in life. He realized that while money is important, purpose is what gives life meaning. Buford explains this through the Sigmoid Curve : Curve 1 represents the first part of your life—learning, growing, and mastering your craft. This typically takes you up to around age 50, when you might feel like you’ve reached a plateau or are just coasting toward retirement. Curve 2 is the next chapter—when your focus shifts from inward to outward, from success to significance. This is where you find fulfillment by contributing, giving back, and making a difference in your community. The retirees who thrive the most aren’t the ones who just relax all day. They’re the ones who stay involved, serve others, and wake up each morning with a sense of purpose. A Final Thought The Bible tells us that Abraham had his first child at the age of 100, and his wife Sarah was 90. That story reminds us that no matter your age, there’s still a promise and a purpose over your life. You still have something valuable to give. So as you plan your retirement, don’t just think about your finances—think about your purpose. Don’t be passive. Be active. Be intentional. Live with purpose.