In particular, the SDF may grant the necessary authorization for post-fact trade control, but this could result in sanctions against south African stock market control residents involved in the relevant cross-border transaction. The following article in this series will take into account the requirements that any foreign lender and a local borrower will have to take into account when transferring cross-border credit transactions. Note that if a borrower wishes to repay a loan in advance (in whole or in part), this is not allowed without the express prior authorization of the SDF, which must be obtained at the time of the proposed prepayment. The reason is that consent to prepayment is not the general policy of the SDF. The so-called loop structures are considered to be contrary to the policy of the SDF. A loop structure is created when South Africans acquire shares in foreign companies that, in turn, invest in South African residents or lend to South African residents. For example, a South African resident is not allowed to invest in a foreign company that transfers funds to a company based in South Africa. There are exceptions to this directive. In addition, South African residents are allowed to invest without restriction in a foreign company listed on the Johannesburg Stock Exchange.

In the South African credit market, union and cross-border credit transactions are carried out on a regular basis. It is customary for these transactions to involve a number of legal systems and for the documents used in these transactions to be subject to a different legal regime than south African law. It is the then necessary to reconcile the requirements and practices of the various legal systems to ensure that these transactions are economically viable, bankable and consistent. The SDF limits the interest that a non-resident lender may charge a South African borrower for certain loans. These limits differ depending on whether the lender is a shareholder of the borrower or a third party and whether the loan is denominated on the South African margin or in another currency. Subsequently, the CML requested a reduced assessment of SARS on the basis that the loan met the exclusionary conditions set out in section 31, paragraph 7. Such a requirement, which must be taken into account at the beginning of each cross-border transaction, is its analysis of exchange rate control in accordance with the regulations of the South African Exchange Control, 1961 (regulations).