Tuesday, 9 April 2013

What is a BOP Form?

A BOP form or Balance of Payment form is an essential document needed for any foreign exchange transaction. A BOP form can be compared to a passport. If you are planning to go on an overseas trip you will need a passport, in much the same way for money to be transferred overseas you will need to fill in a BOP form.

The purpose of a BOP form is to record the repatriation of foreign exchange received from abroad or foreign exchange being sent out of South Africa. The form contains all information relevant to sending or receiving foreign currency: sender information, receiver information, deal codes, amount being transferred.

It is a South African Reserve Bank (SARB) requirement all exporters and individuals receiving money from abroad complete a Balance of Payment (BOP) form. The information on a BOP form is captured by your bank and then reported to SARB. The BOP form can also serve as a payment instruction and legal document that banks can use to credit an exporters account.

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