What does Kuda FX do?
Corporate Revenue
Kuda FX specializes in converting your South African Rand into Dollar, Sterling, Euro and any other currencies to your nominated offshore beneficiary.
In the Corporate Revenue space, we have incredible solutions geared towards Small-to-Medium Enterprises (SME’s) that require a little more assistance than “just” remitting funds overseas.
How do we support?
For most SME’s having a full-functioning compliance, treasury or accounts department is not always possible. And this makes managing overseas transactions – whether receiving our paying foreign investment difficult.
Because Kuda FX has a full functioning back-office compliance team we are able to offer full support to SME’s that – as an example – conduct business in the importing and exporting space. Here the exchange of foreign funds happens on a daily basis and with it comes a lot of red tape. This becomes specifically useful when ensuring compliance with both the South African Reserve Bank (SARB) and foreign exchange control regulations.
Instead of the SME who has no compliance or treasury department or whose accounting department is stretched beyond limits, Kuda FX steps in to take over the regulatory and compliance obligations for them.
Whether receiving or paying foreign funds, Kuda FX supports by ensuring that –
- the SME complies with both SARB and foreign exchange control regulations, and
- the SME reports what that payment or receipt of money was for.
And Kuda FX does this by taking over those functions for them.
Instead of the SME stressing over how they are going to handle an offshore transaction (with limited compliance and treasury capabilities), Kuda FX receives the foreign currency on their behalf, converts it into South African Rands and then pays those funds over to the client. Alternatively, Kuda FX assists by receiving the foreign currency from our client and then paying it over to their international supplier.
But we don’t just leave it at that “simple” transaction. No. We take it a step further and do the reporting to SARB as well as the foreign exchange control. The result? A lot of administrative hassle is alleviated, leaving the SME to do what they do best.
Turning something frustrating and stressful into something easy as pie.
But there’s more.
If a SME expands their business model taking them from a SME into a larger company, Kuda FX by virtue of their close relationship with Investec Bank, is able to offer credit facilities to these SME’s who won’t have to apply for them through an ordinary corporate bank. By doing so, our client’s are saved from intense, rigorous onboarding processes where financial statements galore are required and can just continue – without stress or hassle – and do business.
Making doing business across borders straightforward and really easy.
One of the useful services we offer is forward cover. This relates to our client’s needing to pay a foreign supplier a couple of months down the line. But “today” the US$ exchange rate is favourable. Instead of risking a fluctuation in the exchange rate, our clients are able to “fix that rate upfront”. Meaning they will pay their foreign supplier at today’s favourable exchange rate. And we do this without requiring loads and loads of documentation. Allowing you to just do business without the headaches – whilst always ensuring compliance with necessary regulations.
Wealth Revenue
Before we delve into how we can assist in this area, it’s worth noting the following –
- Your Single Discretionary Allowance (SDA) is a maximum of R1-million per calendar year. No SARS tax clearance is required for this. Foreign exchange for travel and other foreign transactions form part of this R1m allowance.
- Your Foreign Investment Allowance (FIA) is R10-million per calendar year. A compliant SARS tax clearance for foreign investment is required before funds may be converted from ZAR to the nominated foreign currency.
- A compliant SARS tax clearance for purposes of foreign investments is required to make use of the Foreign Investment Allowance.
- Kuda FX offers a service of applying for the tax clearance on behalf of our clients. Once approved, the tax clearance is valid for 12 months.
This portion of Kuda FX’s business is focused on individuals, advised by financial advisors, who are looking to transfer either their SDA or FIA offshore. These individuals don’t usually come to Kuda FX directly. Rather the transaction and relationship is managed between Kuda FX and the financial advisors we have partnered with.
In other words – this is a service Kuda FX performs on behalf of a financial advisor in service to their clients. This can therefore – and for ease sake- be defined as Business to Business to Customer (B2B to C).
Where the transfer of funds offshore is concerned – especially in relation to a FIA – Kuda FX is a key partner when South African residents immigrate to another country. Kuda FX offers a seamless way to move money abroad helping you to start your new adventure knowing your money has been taken care of.
But again, we don’t just leave it at that. We ensure that we support with all tax clearance and compliance obligations – obtaining your FIA for you and ensuring your tax compliance is up to date. Ensuring no surprises when you land on the other side.
And we do this as an “all inclusive” offering, meaning that no additional funds are charged for this service.
Whether you are transferring money as part of a financial investment strategy or are looking to move all your funds as part of an immigration process, Kuda FX has you covered. Ensuring ease and peace of mind knowing everything is in compliance with necessary regulations.
Crypto Revenue
- Crypto currency is a digital currency designed to work as a medium of exchange in transactions which are verified and records maintained by a decentralized system (such as through a computer network) and is therefore not reliant on a central authority, government or bank to regulate or maintain it. that is not reliant on any central authority, such as a government or bank, to uphold or maintain it.
The cryptocurrency arbitrage has become an established and trusted method in making money by taking advantage of the price difference that exists between the local and foreign crypto currency exchanges. Crypto arbitrage involves the buying of cryptos such as BTC on overseas exchanges and selling them in SA at a higher price – usually 2% to 3% above what they sell for abroad. This is due to our exchange control as well as being a much more illiquid market than what you would have in the US, creating a fertile ground for crypto arbitrage.
With Crypto Arbitrage Trading, you do not invest directly in the cryptocurrency, but rather in the margin between the different markets. As such, you will never own the cryptocurrency as part of this investment.
Under this “umbrella” an individual would obtain their FIA “ticket” from SARS to send their funds offshore. Those funds will then be converted into US$ (after being picked up by an arbitrage engine partner such as Shiftly) and it’s then brought back into South Africa where the funds are remitted to a crypto trader’s account through Kuda FX.
Now, we want to stress the point that Kuda FX always ensures compliance with necessary regulations and therefore always operates within the parameters of our law. As such, Kuda FX only facilitates the remittance of a crypto trader’s funds offshore.
The crypto currency space is geared for a high volume of transactions at a lower margin. It’s a price sensitive, tech savvy, high octane market and Kuda FX has geared their operations to assist these transactions as fast paced as possible, while always ensuring strict compliance with laws and regulations.
Kuda FX can assist you by providing you with the most favourable foreign exchange rates while also ensuring that your funds reflect abroad on the day that it is booked. This enables you to secure higher arbitrage returns.
Other Revenue
Corporate Cash Manager is a system or platform offered by Investec where individuals deposit their money into accounts and Kuda FX then remits the money from the individuals Investec Corporate Cash Manager Account offshore.
With Travel Forex we have partnered with the Inter Africa Bureau de Change to bring you a Travel Foreign Exchange product facilitated by Kuda FX. This value-add product is available to all our Kuda FX clients – helping you to manage your travel money. Fast, simple, and secure.
And that is how Kuda FX is making your foreign exchange transactions not only easy, hassle-free, and seamless, but often times lucrative too.
We encourage you to get in touch with a FX professional, like our team at Kuda FX who would be happy to explain the above concepts in further detail or provide any other assistance you may require with your specific FX needs.
In fact, if you have any queries on the information we have set out above, please feel free to get in touch with us.
We look forward to helping you with all your forex needs!
