Companies operating in multiple jurisdictions must hold multiple bank accounts and trade in different currencies – a complex and difficult situation for corporate treasurers trying to get a single, consolidated view of the company’s foreign exchange position.
This issue has been resolved in what will be a first for South Africa. BeztForex has partnered with a global fintech foreign exchange intermediary to offer global foreign exchange services to qualified individuals with authorized offshore funds, as well as companies with approved offshore structures.
“This means that we will now be able to offer eligible SA clients a range of services and opportunities that were previously not available locally,” said BeztForex CEO Herman Bezuidenhout.
“We will efficiently provide foreign exchange and payment services through our global partner, which is fully regulated in 21 countries and has offices in 32 jurisdictions around the world.
“We can offer transactions in more than 130 currencies [and] term coverage for up to five years instead of the usual 12 months, and customers can view all their bank statements through a single dashboard,” he adds.
“This is a game-changer for companies with approved offshore structures that want a global banking and forex view from all of their offices internationally.
“Through our partner, we provide full SWIFT connectivity, allowing payments to be sent and received without interacting with the traditional banking systems of the client’s partners.”
Simple
The new service simplifies collecting money globally. Once funds are collected, they can be viewed online and processed at competitive exchange rates.
A crucial benefit is the ability for SA customers to gain a competitive advantage and build customer loyalty, by setting prices and accepting payment in local currencies.
“It removes a vast layer of complexity in cross-border trading and forex management,” says Bezuidenhout. As an example, he cites a South African customer who orders from China and needs to convert rands into renminbi to make payment.
“We can now offer them the ability to manage accounts in multiple different countries and currencies, and manage it all through one platform, with very low currency conversion costs.”
Another major benefit for citizens and businesses around the world is the ability to purchase term cover for five years, instead of the usual 12 months. This significantly improves forward planning and currency risk management. The ability to lock in an exchange rate today, for delivery in five years, will facilitate longer-term financial and business planning for global customers.
Foreign nationals living, working or investing in South Africa will also benefit from this new global offer.
BeztForex will find clients for this new offering by following the needs of SA clients who have become global citizens from an individual and business perspective.
“Our fintech partner, which is backed and majority owned by a major global bank, now employs over 1,300 people, having started in 2009 with just four employees. He handled $21 billion in foreign exchange transactions in the last fiscal year and is recognized as one of Bloomberg’s top currency forecasters,” Bezuidenhout says.
“Our new offering has very strict criteria for becoming a customer of this global currency exchange service, including full Financial Intelligence Center Act (Fica) and Anti-Money Laundering (AML) requirements.
“Not only will clients go through strict due diligence during the onboarding process, but full due diligence will also be performed on all beneficiaries and counterparties to transactions,” Bezuidenhout adds.
Foreign exchange and cash management solutions
Another benefit for customers who sign up for the service is a wide range of currency and cash management solutions that can be tailored to specific needs.
“For example, some companies are inclined to allow certain forex price movements as part of the normal risk of doing business, but want to protect themselves against more extreme moves,” Bezuidenhout explains.
“Our global partner offers insight into the dynamics of global forex markets and can advise you on how best to protect against the most likely risks, all under the guidance of a dedicated relationship manager.”
BeztForex will be able to offer such clients:
- payment and remittance services;
- foreign exchange/currency exchange services; and
- Supply Chain Finance (only for registered offshore entities).
In addition to the strict criteria and Fica/AML processes, the offer will be submitted to global clients who meet all the financial supervision requirements of the Reserve Bank of South Africa. This offer is in the process of being ratified by the South African Reserve Bank.
Brought to you by BeztForex.
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