FNB giving wrong advice on blocked accounts?

[CherylC]

I hope somebody can guide me in the right direction, please. I have just been to FNB Sandton City as it is closest to my work. I wanted to start the whole 'getting a blocked account'-process. I was told by a Busi that as long as I have a South African ID and South African passport, I don't need one! I then thought to ask about using my credit card in Oz, being an Australian PR? Guess what her answer was: Yes, as long as I just phone them regularly to let them know that I am still there. I made it clear that we were emigrating and I made it clear that we will be Australian permanent residents. This all sounds completely wrong and we are running out of time to organise this! Can someone perhaps give me FNB contact details or someone to speak to, so I can tackle this process the legal and safe way? I still haven't received an answer from the query I placed on their website last night...

We still have our house to sell, DIscovery MEdical Aid Savings to be paid to me, my husbands RAs, etc.

[HadEnoughofJuju]

Hi Cheryl

I hate to say this, I used to bank with FNB and they are useless when it comes to things like this. I have opened a Standard Bank account and their non-resident division are on the ball and really know what they are talking about. Incidentally they are the only bank that got back to me and answered all my questions which were very similar to those that you asked. You are not going to be able to use your CC once you have moved. Some people say that you can just contact you bank and arrange it but that's not a risk I am willing to take, but again that is a personal choice and risk that each person has to decide on taking for themselves.

I will PM you the contact details for the person I spoke to at Standard Banks non-resident division, he was really helpful and knowledgeable.

[bbop]

Hi CherylC

Contact this lady. She does all our banking things with our FNB blocked account.

Zenda Grobler
Branch Manager
Non Resident Centre/FNB Forex

FNB Personal Banking
9th Floor, FNB Place, 30 Diagonal Street, Johannesburg, 2000

Tel (+27) (0)11 - 352 5025 , Fax (+27) (0)11 - 3717621,

e-mail zgrobler@fnb.co.za

[KIMO]

sorry this maybe a silly question but hey I gota ask.......why the need for blocked account? I thought you only need to do that after formal emmigration and have been under impression formal emmigration only needed if you cashing out an RA. Been told not to bother with doing formal emmigration process?? sorry i am idiot when comes to "financial issues" so any info appreciated

[Jordy]

I think the lady at FNB was correct. It would appear that you have a wrong understanding of "emigration".

You can have a permanent visa and you can come live in Australia for the rest of your life, never ever returning to RSA, you are still not "emigrating." (at least not in the eyes of SARS, the Reserve Bank or the RSA government) Unless you "formally emigrate" you will always be a "South African Resident temporarily abroad" (even with PR and even with the intention of never returning.)

Formal Emigration is a legal process that requires a formal tax clearance with SARS lodged at the Reserve Bank. You do not need to undergo this process prior to leaving in fact it highly recommended that you do not "formally emigrate". The reason is that you will still have a SARS tax return to do for this tax year ending Feb 2014 which will require banking transactions.

I am an Australian citizen having lived in Aus for nearly 5 years and I have no plans of ever returning but I am still officially a "South African Resident temporarily abroad" in the eyes of FNB.

This phrase - "South African Resident temporarily abroad" - is a legal term. It means I do not have to have a blocked bank account.

When you undergo the legal process, and it is a legal process, of formally emigrating then the Reserve Bank will block your accounts for you! So I am would suggest forgettig about doing this for a few years till you have settled and no longer need that internet bank account. But as always get professional financial advise.

[CherylC]

Thanks Jordy and bbop! Now I also know! The main reason why we wanted to get a blocked account was for my husband's RAs and then also because everyone was speaking about a blocked account on the forum. It helps to post something directly on the Forum for answers. Thanks all for your answers. My husband and I will need to get back to the drawing board and decide what it is we choose to do with regards to this account! We're running out of time!

[Mara]

From my information, you cannot get your RA's remitted unless you go through a formal migration.

When we arranged for our RA's to be paid out, we had to supply information from the original formal migration documentation that we lodged before we left RSA.

[bbop]

Yes, we just recently had our RA paid out. We made use of CashKows and also have a FNB account. We had to choose 1 account for the whole process and close all other bank accounts, aswell as any store accounts etc. The blocked account was free. The only fees we had to pay to FNB was at the end of the process (+- 5months) was R1100 to register us at the Reserve bank. Any changes to debit orders (adding/deleting etc), transfers in SA or abroad, I do through the lady I mentioned above, Zenda, via email. My requests are normally done the same day or within a very reasonable timeframe. Sure was worth it.

[RichardH]

I can also vouch for Zenda, she is very good, and I guess a very busy person too :-)

[Heymanse]

Having had the blocked Rand account gave us peace of mind. I also just emailed my Exchange Control officer at Standard Bank Braamfontein branch every time I wanted money to be transferred or had some bank-related transaction to be done. Never had any problems/issues with having it and was easy enough to manage and finally close it when we had all our RAs paid out to us and didn't see the use of having the account open any longer. Rands not worth anything and just losing value by the day.

[GideonVD]

I just hope we can get our RA's out ASAP before they mean nothing at all

[wendym]

The reason is that you will still have a SARS tax return to do for this tax year ending Feb 2014 which will require banking transactions.

Edited April 5, 2013 by wendym

[wendym]

The reason is that you will still have a SARS tax return to do for this tax year ending Feb 2014 which will require banking transactions.

Does this mean that a SARS refund can't be paid into a blocked account?

[bbop]

Money can go into the account without any problems, it's when you want to take money out that you are going to need approval first.

[wendym]

Money can go into the account without any problems, it's when you want to take money out that you are going to need approval first.

Thanks bbop!

[miraclebabycaw]

My hubby was a forex dealer for FNB and we will also deal with Zenda. She is very good. You can't "block" an account until you actually leave the country..it then becomes a "non residents" account from what I understand. This is done when you formally emigrate with the reserve bank so you can get RA's out. That being said the best process is not to do this until you have made sure all money besides RA's that you want to transfer has been transferred because nothing can be taken out of it until the whole process has been finalized. I did hear that as part of the process you need to get a confirmation from the country that you have gone to or something but don't quote me on that. Hubby not around right now to ask..

[bbop]

My hubby was a forex dealer for FNB and we will also deal with Zenda. She is very good. You can't "block" an account until you actually leave the country..it then becomes a "non residents" account from what I understand. This is done when you formally emigrate with the reserve bank so you can get RA's out. That being said the best process is not to do this until you have made sure all money besides RA's that you want to transfer has been transferred because nothing can be taken out of it until the whole process has been finalized. I did hear that as part of the process you need to get a confirmation from the country that you have gone to or something but don't quote me on that. Hubby not around right now to ask..

Yes, you need to show proof of residence (visa grant or permit)

[AshB]

On ‎23‎/‎03‎/‎2013 at 0:39 AM, Jordy said:

I think the lady at FNB was correct. It would appear that you have a wrong understanding of "emigration".

You can have a permanent visa and you can come live in Australia for the rest of your life, never ever returning to RSA, you are still not "emigrating." (at least not in the eyes of SARS, the Reserve Bank or the RSA government) Unless you "formally emigrate" you will always be a "South African Resident temporarily abroad" (even with PR and even with the intention of never returning.)

Formal Emigration is a legal process that requires a formal tax clearance with SARS lodged at the Reserve Bank. You do not need to undergo this process prior to leaving in fact it highly recommended that you do not "formally emigrate". The reason is that you will still have a SARS tax return to do for this tax year ending Feb 2014 which will require banking transactions.

I am an Australian citizen having lived in Aus for nearly 5 years and I have no plans of ever returning but I am still officially a "South African Resident temporarily abroad" in the eyes of FNB.

This phrase - "South African Resident temporarily abroad" - is a legal term. It means I do not have to have a blocked bank account.

When you undergo the legal process, and it is a legal process, of formally emigrating then the Reserve Bank will block your accounts for you! So I am would suggest forgettig about doing this for a few years till you have settled and no longer need that internet bank account. But as always get professional financial advise.

 

My rand blocked account held at Standard bank was hacked, all funds cleared and now the bank is throwing 'the email indemnity' to me as a refusal to be liable .

 

What recourse do I have against the bank., I suspect internal fraud as I do believe a 'block account' cannot do internet transfers as mentioned above.

 

AssB