The ADLA Licensing Process in South Africa: A step-by-step guide
- Hertz Experts
- Aug 4
- 2 min read
Updated: Sep 25
The Hertz Consulting team, comprising of a highly experienced local, international bankers,
including SARB and FSCA staff, legal experts, will assist your company with an end-to-end
ADLA license application to the Financial Surveillance Department of the SARB.
The Hertz Consulting team can further assist your company when dealing in foreign
exchange, with an intermediary service company (Authorised FSP) offering Foreign
Exchange & Global Trade solutions to Importers, Exporters and Investors in South Africa.
The key aspects as defined by the SARB of an ADLA License are as follow:
Definition
The Authorised Dealer in Foreign Exchange with Limited Authority (“ADLA”) license is a
license issued by the South African Reserve Bank. This license allows companies like
independent money transfer operators, value transfer service providers and bureaux de
change, to conduct very specific foreign exchange transactions in South Africa. When
applying and obtaining such an “ADLA” license from the Regulator in South Africa, your
company, its Directors, Shareholders, and employees must ensure compliance with the
license conditions. Failure will lead to potential administrative as well as financial penalties,
even the suspension of operations and cancellation / withdrawal of your company’s license.
By obtaining your ADLA license, it will allow your company to legally operate within South
Africa`s regulatory and financial framework, increase trust and confidence between all
parties involved and enable participation in the foreign exchange market, particularly your
cross-border transactions.
The key aspects of an ADLA license are as follow:
Limited Authority
“ADLA`s” are authorized by the SARB to deal in certain foreign exchange
transactions.
The rules are clearly set out in the Currency Exchanges Manual, issued by
the SARB.
The license conditions will be set out by the SARB.
Compliance
The “ADLA” license ensures adherence to the local Exchange Control
Regulations, as well as any other legislation like the requirements of the
Financial Intelligence Centre Act (“FICA”).
Typical Transactions
“ADLA`s” can deal in transactions related to travel, money transfers, and
other specified activities.
This is obviously subject to the license conditions.
Independent Operation
The SARB does permit certain categories of “ADLA`s”, specifically those
operating as an independent money transfer operator, to operate
independently, without the need for a partner bank.
Reporting Requirements
“ADLA`s” has a statutory reporting obligation to the Financial Surveillance
Department of the SARB regarding all their foreign exchange transactions.
Staff requirement
The Currency and Exchange Manual Financial Surveillance Department of
the SARB require specific experienced staff within a company i.e.:
Exchange Control Officer
Money Laundering Compliance Officer
BOPCUS reporting officer
Compliance Officer - At Hertz Consulting, we have an outsourced team that can
assist your needs to the satisfaction of the Regulator.
Licensing process
The licensing process generally involves:
Initial Assessment
Documentation: Gathering all the required documentation and
ensuring compliance with SARB requirements.
Application: Completing the application forms accurately and
thoroughly.
Business Plan: Developing a well-structured business plan for
a SARB review.
Risk Management Compliance Program “RMCP”: Developing
a well-structured “RMCP” for a SARB review.
