Poor service

I received an order from client in Brazil 13 Feb 2018. It is for specialised test equipment, manufactured in the Ukraine. Test equipment is required for radio surveys on international sea going vessels, as per the International Maritime Organisation (IMO) and their respective Classification Societies requirements. IMO an United Nations body. Without this test equipment Client will lose their Classification Societies accreditation.

I was in the process of opening a Standard Bank business account at my branch, Brooklyn at the time. The earliest appointment with a Standard Bank Business Banker was 19 Feb 2018. Business account was opened thereafter, including CFC account.

IN ORDER TO ASSIST MY CLIENT IN DELIVERING THE TEST EQUIPMENT ASAP I ASKED ONE OF THE BROOKLYN FOREX BANKERS IF IT WOULD BE OK IF MY CLIENT MADE PAYMENT INTO MY PERSONAL STANDARD BANK ACCOUNT, EVEN THOUGH THE PROFORMA INVOICE AND SWIFT BENEFICIARY DETAILS WERE IN THE BUSINESSES NAME. I WAS ASSURED THAT IT WAS OK. CLIENT’S PAYMENT WAS RECEIVED IN MY PERSONAL ACCOUNT SOON AFTER. NO PROBLEM.

I placed an order on the Ukraine manufacturer after receipt of payment. Equipment will be shipped directly to client in Brazil. The manufacturer informed me that the could not accept the order at the time due to production and product unavailability issues. The earliest shipping could take place was end April / May 2018. I inform my client accordingly.

I received a Proforma Invoice from the Ukraine manufacturer 23 May 2018. I submitted an “Application to purchase foreign currency Cross Border foreign exchange” to the Standard Bank, Brooklyn Forex section on 24 May 2018. The manufacturer was to be paid out of funds available in my CFC account.

On 25 May I received an email from Standard Bank Forex informing me that the payment is on hold due to the reason that: 1. the inward funds from the end user of the goods were received in my personal account but I am am now paying the manufacturer out of the business account. 2. proforma invoicet o my Client in Brazil was issued on the 9 February 2018 but the proforma invoice from the Manufacturer in Ukraine to my business was issued on 23 May 2018. I needed to provide the reasons for the above, which I immediately did. On 29 May 2018 Standard Bank Forex informed me that to further process the Forex Application, SARB approval is now required and takes 4 to 6 weeks. I immediately enquired if I could pay the manufacturer out of my personal account, also if I should have the manufacturer issue their proforma in my personal name. I got feedback from Standard Bank Forex this morning that said “that you are not allowed to change the invoice because it would contravene exchange control. The only option is to put up an urgent SARB approval application.”. Delivery to client is now more than three months behind schedule. The are in desperate need of the test equipment. In the back of my mind all I can think about is the fact that Standard Bank has recently been implicated in terms of foreign exchange irregularities / violations and now they are taking it out on their customers who are legitimately doing business.