New PayPal requirements

Pixual

Pixual

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I got this email from FNB a short while ago, but I am having some difficulty understanding what they hell they are on about. Maybe somebody smarter than me can shed some light?

Dear FNB PayPal customer

We would like to highlight three very important enhancements to the FNB PayPal service.
Balance of Payment (BOP) Reporting
As you are aware we report all top up and withdraw transactions relating the FNB PayPal service to the South African Reserve Bank (SARB). This report includes:

the contact details of either the individual or commercial entity making or receiving the cross border payment
the reason for the cross border payment also known as the BOP code, which you are required to select for each payment

The FNB PayPal service can only be used for specific BOP codes that have been approved by the SARB. Furthermore, certain BOP codes may require supporting documentation which the SARB may request at any stage.

In August 2011 we will introduce three new BOP codes and remove others. It is therefore very important that you review the BOP code table which includes the required supporting documentation and ensure that you select the correct code when next transacting.

Import Verification System (IVS)
The Financial Surveillance Department of the South African Reserve Bank (SARB) has announced the implementation of the Import Verification System with effect from 15 August 2011.

The IVS makes provision for the matching of import payments against Customs documentation. This customs documentation is what is known as the Bill of Entry, Import Control, or Movement Reference document.

The FNB PayPal service will be enhanced to accommodate this requirement and you will be required to submit customs documentation for all Top UP transactions when using BOP code 101 (Advanced payments for goods imported through a customs office). Customs documentation, including the specific FNB Top Up reference number, can be emailed or faxed to [email protected] or fax: 011 438 8150. We will remind you of this requirement when completing your transaction and again within 6 weeks should we not have received it.

Customers with an Import Undertaking (Dispensation Customers)
Anyone importing goods should have applied for a Customs Client Number (CCN) from the South African Revenue Service (SARS). In addition some customers may have an Import Undertaking with the SARB and their CCN will specifically allow them to use BOP code 108 (Advance payments in terms of an import undertaking). This undertaking will also exempt them from having to provide customs documentation to FNB when using BOP code 108.

Customers will only be allowed to use BOP code 108 if confirmation of the Import Undertaking has been provided to FNB. To do so please contact us on 0861 PAYPAL (729725)

Should you have questions relating to any of the above please contact us on 0861 PAYPAL (729725)

Regards,
FNB PayPal Team
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I downloaded this form thing in PDF format and it seems that now we have to submit "documentary evidence" every time we receive payments from people outside of SA. WTF? Is this another way for the government to screw us out of our earnings?
 
Got the e-mail too. Sounds like a huge waste of time, effort and resources but whatever.

I'm hoping it doesn't affect my usual purchasing habits otherwise I might throw a hissyfit (as in, wtf is the point of PayPal then, you stupid tarts?).
 
I dont buy with paypal, but I do receive payments for stuff I sell, so I am just wondering what the hell they expect me to supply for bringing money into the bloody country?
 
Pixual said:
I dont buy with paypal, but I do receive payments for stuff I sell, so I am just wondering what the hell they expect me to supply for bringing money into the bloody country?
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I've only sold something once but I completely agree with you: what do you supply them with for something digital you sold, erm... digitally?

Sometimes I fear ZA is still a couple of years behind how the developed world operates with its ridiculous hoop-jumping to get anything done.

My spouse sends money in every month, but through normal wire transfer (PayPal costs a fair penny and takes longer). Are they going to bitch about that too?

I think they're more concerned about money going out than coming in.
 
Seems to be aimed more at people using Paypal to buy, so this may cause major problems with eBay purchases.

Looks as if the SARS Gestapo are in control of the South African Reserve Bank.

Maybe they can spend their time more productively investigating Tenderpreneurs.
 
Jola said:
Seems to be aimed more at people using Paypal to buy, so this may cause major problems with eBay purchases.
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How many people buy by putting money into their Paypal account though?

Lycanthrope said:
My spouse sends money in every month, but through normal wire transfer (PayPal costs a fair penny and takes longer). Are they going to bitch about that too?
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You've never been asked to complete documentation for that?

Pixual said:
I downloaded this form thing in PDF format and it seems that now we have to submit "documentary evidence" every time we receive payments from people outside of SA. WTF? Is this another way for the government to screw us out of our earnings?
Click to expand...
No you normally have to complete a form if you receive money into your account from overseas.

When we wanted to transfer money out of the UK they made us fill out a whole pile of forms too.
 
mister said:
strange... Every time I receive a wire transfer they phone me and ask what balance of payment category to use when reporting it...
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FNB take R125 commission and plop the rest into my account within five days of the transfer. Nedbank used to phone me up something 10 days later and ask me what the "nature" of the money is and I'd say, "Personal, my spouse sent it to me." Never required any other documentation there either. Guess the bank fills that stuff in for you.

Can't say I miss the phone calls, I've had some REALLY stupid questions before from some REALLY obtuse people.
 
I have never had to fill out anything before either. I bring in about $300 US per month which is made up of about 10 transactions. What documents do I have to supply?
 
It was only time before they realized that this was required for their PayPal initiative.
It's exchange control regulation - all outgoing payments (from S. Africa) have to be reported on the BOP forms... other than - fingers crossed - Credit Card transactions which are okay for now.
Sucks though. :cry:
 
FNB really could have done better in making that email understandable by a layman.

Given you don't have to do this when buying using your credit card my initial thought is why when buying using paypal? Then I think o suppose merchants that accept credit cards can be traced through Visa or Mastercard.

When you are buying from a private seller using paypal, it may be easier to externalise your Rands while circumventing exchange control.
 
Sounds like the SARB has gone all paranoid about paypal
 
noxibox said:
How many people buy by putting money into their Paypal account though?
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IMO it looks as if they want documentation for all purchases, not just for cash out of the Paypal accounts.

So you will require extensive documentation for the purchase of a USD3 pigtail from Hong Kong.

SARS and SARB are idiots - this is complete big brother stuff kicking in !
 
So I'm sure you guys have received that email that says "By law you have to withdraw funds within 30 days blah blah blah".
I don't have an FNB account and really, it was a once off thing so I couldn't be bothered to open the account just to get R400 out and then close it again.
Anyone know what happens if heaven forbid, I don't actually take the R400 out into an FNB account, and just use it to pay for other things?
 
Jola said:
IMO it looks as if they want documentation for all purchases, not just for cash out of the Paypal accounts.

So you will require extensive documentation for the purchase of a USD3 pigtail from Hong Kong.

SARS and SARB are idiots - this is complete big brother stuff kicking in !
Click to expand...
It's the same exchange control and tax regulations that apply to anything else. It would be very convenient if people could move money around with Paypal to avoid paying tax on income. The documentation for money going out is exchange control. It should not apply to credit cards.

Pixual said:
I can understand outgoing funds, but why complicate incoming funds?
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Tax. Other countries will be similar.

milomak said:
Given you don't have to do this when buying using your credit card my initial thought is why when buying using paypal? Then I think o suppose merchants that accept credit cards can be traced through Visa or Mastercard.

When you are buying from a private seller using paypal, it may be easier to externalise your Rands while circumventing exchange control.
Click to expand...
There's money laundering as well.

steel_dog said:
other than - fingers crossed - Credit Card transactions which are okay for now.
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Credit card rules are already in place. Presumably this is already reported automatically.

Lycanthrope said:
FNB take R125 commission and plop the rest into my account within five days of the transfer. Nedbank used to phone me up something 10 days later and ask me what the "nature" of the money is and I'd say, "Personal, my spouse sent it to me." Never required any other documentation there either. Guess the bank fills that stuff in for you.
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Yes, they normally will do it on your behalf. It's quite likely that since you receive the money regularly from the same source it is now on record.

Zdenek said:
So I'm sure you guys have received that email that says "By law you have to withdraw funds within 30 days blah blah blah".
I don't have an FNB account and really, it was a once off thing so I couldn't be bothered to open the account just to get R400 out and then close it again.
Anyone know what happens if heaven forbid, I don't actually take the R400 out into an FNB account, and just use it to pay for other things?
Click to expand...
Had no trouble transferring the money to another Paypal account, but it wouldn't allow me to pay for something with the money.
 
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