Can you open a foreign bank account while living in South Africa?

In the past, banks required you to physically reside in the country where you wanted to open an account, but that’s no longer always a requirement.

There are many reasons why you may want to open a bank account offshore. Perhaps you are emigrating and want to have an account ready for your arrival; you run a business that is receiving money from overseas based businesses, or you are simply jittery about South Africa’s economic prospects, and you want to protect your money.

The good news is that opening an account abroad is not as difficult as it once was, especially if you do your research properly.

1. Talk to your bank

‘Several banks allow individuals to open accounts offshore if the bank has a footprint in that country,’ points out Yolande Butchart, foreign exchange consultant at Brent Wealth, based in Mauritius.

Both FNB and Standard Bank have a division on the Isle of Man, for example, so customers can open an account there too.  Alternatively, Investec and Absa run operations in Mauritius so existing clients can open accounts on the island without setting a foot on it. Nedbank, on the other hand, is only able to assist its customers with opening accounts in select African countries.

‘It is good to discuss your plans with your local bank or relationship manager who can confirm what the bank offers,’ continues Butchart.

2. Apply via disruptor banks

If you’re planning on moving to the UK or America and already have an address there, you could easily set up an account with a so-called digital bank. In the UK, the most popular ones are Starling Bank and Monzo while in the USA its Revolut.

You will need to download the relevant app on your phone and complete a digital application form. It asks for personal information like your name, contact details and UK/US address as well as information about your career, and how you want to use your new account. You will need to verify your identity by sending a picture of your passport or residence permit as well as a selfie or a video.

The whole process takes less than 10 minutes and each of the banks have different account options to choose from – Revolut even has an account especially for freelancers!

You won’t be able to use your account until you activate the card that gets sent to the UK/US address you provided, but it certainly speeds up the process of getting a sort code and account number to give out to new employers, for example.

3. Get help from the experts

Your bank will usually only be able to advise on one-dimensional foreign currency accounts, often referred to as customer foreign currency (CFC) accounts. Typically, these allow you to manage foreign receipts and payments and are subject to exchange control regulations, which can be costly.

A licenced financial service provider can assist with opening an offshore account that offers more services, like receiving payments for work done outside of South Africa, conduct international transactions and access international funds by way of a debit or credit card, for example.

‘Some banks require face-to-face meetings with the account holder while others are comfortable to work through a licenced service provider in which case, a face-to-face meeting might not be required,’ says Roné Silke, structuring expert at Sovereign Trust SA.

Brenthurst Wealth have partnered with Brent Wealth in Mauritius to assist South Africans wanting to open a Mauritian bank account so they can start transferring funds out of South Africa until they relocate.

‘Once the account is opened, you can either use the debit card in the new country or open an account in that country and transfer the funds from Mauritius to your new bank account. As there are no foreign exchange control laws in Mauritius, you can choose from up to 18 different currencies,’ adds Butchart.

With a bit of effort and research, opening a foreign bank account to make and receive payments is easier than you think.