SOURCE OF FUNDS EXPLAINED

Source of funds: What is it?

When purchasing cryptocurrency offshore it is required, by law, for banks to verify the source of the funds invested. This is to prevent money laundering and counter-terrorism financing. This formality is also put in place to ensure that you are using your own Rands and not someone else’s when expending your foreign investment allowances. This is non-negotiable – so be sure you have the appropriate documentation proving the source of your invested funds.

It is important that the funds invested are indeed your own. NCA accredited loans, for example, are permissible provided the loan is taken out in your name. Gifts or loans from family members, for example, are not permissible.

 

To review SoFs that are deemed permissible please consult the following resource: https://drive.google.com/file/d/10dioL82aPBbLgYgh_c2cchbVmBHrzN-_/view?usp=sharing