- July 25, 2019
- Posted in LOCAL
According to the new RBZ Exchange Control Regulations: Nostros Transitionary Accounts which received funding from Export Proceeds can only send payments to Exports Nostros Accounts when buying chrome from a Producer / miner regardless of whether the person or group is registered as an individual or a company.
Although the funding transfer might not be blocked if a transfer is made from a Nostros Transitionary Account to an Individual Nostros Account, according to RBZ this type of transaction will be regarded as being out of compliance with Exchange Control Rules. When this type of transaction is discovered RBZ regulatory action will be taken against such offenders in accordance to the governing rules. Both the Buyer and seller will be negatively impacted in this regard. This is due to the operational differences between an individual Nostros and an Exports Nostros Account.
Exports Nostros Accounts enable the banks to automatically deduct the 50% USD retention and operate the account according to RBZ Exchange Control Rules, Regulations and Guidelines.
Individual Nostros Accounts do not allow this operation as free funds to the Individual, it’s out of RBZ Exchange Control compliance regarding earnings from Exports.
To avoid being out of compliance a chrome producer regardless of operational structures (registered as Individuals or as a Company) are required to open an Exports Nostros Account.
2) Regarding Cash withdrawals from a Nostros Export Account:
A company can only withdraw USD cash for business travel. Payments from the Export account should be made direct to the beneficiary through normal banking channels (TT)
3) Compensation to owners from Exports Nostros Accounts:
Transfer payments being made for purposes of compensating Business partners / owners should be made via Rtgs Payments as these are viewed as local / domestic Payments: For example the payment amount to the owner or business partner would be first converted to Rtgs at the interbank rate then transferred to the Rtgs Account of those receiving their ownership stake or agreed upon compensation.
Chrome Buyers are further advised to first confirm that the Chrome Producer / Miner is using an Exports Nostros Account before effecting Payments to avoid being out of compliance with RBZ Exchange Control Rules.
ZMF National Chrome Representative