SAQA All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.
SOUTH AFRICAN QUALIFICATIONS AUTHORITY 
REGISTERED UNIT STANDARD: 

Process Foreign Finance Loans 
SAQA US ID UNIT STANDARD TITLE
10127  Process Foreign Finance Loans 
ORIGINATOR
SGB Banking and Micro Finance 
PRIMARY OR DELEGATED QUALITY ASSURANCE FUNCTIONARY
BANKSETA - Banking Sector Education and Training Authority 
FIELD SUBFIELD
Field 03 - Business, Commerce and Management Studies Finance, Economics and Accounting 
ABET BAND UNIT STANDARD TYPE PRE-2009 NQF LEVEL NQF LEVEL CREDITS
Undefined  Regular  Level 4  NQF Level 04  18 
REGISTRATION STATUS REGISTRATION START DATE REGISTRATION END DATE SAQA DECISION NUMBER
Reregistered  2018-07-01  2023-06-30  SAQA 06120/18 
LAST DATE FOR ENROLMENT LAST DATE FOR ACHIEVEMENT
2024-06-30   2027-06-30  

In all of the tables in this document, both the pre-2009 NQF Level and the NQF Level is shown. In the text (purpose statements, qualification rules, etc), any references to NQF Levels are to the pre-2009 levels unless specifically stated otherwise.  

This unit standard does not replace any other unit standard and is not replaced by any other unit standard. 

PURPOSE OF THE UNIT STANDARD 
Persons credited with this unit standard will be able to explain rules and regulations related to foreign finance loans, obtain authority for the establishment of a foreign finance facility, arrange the utilisation of the facility, source the foreign funds, manage the facility and arrange the repayment and rollover of the loan. 

LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING 
This unit standard should be completed subsequent to proven competence in the unit standards for purchasing and selling foreign instruments and processing inward and outward foreign documentary collections. 

UNIT STANDARD RANGE 
Import, export and working capital loans. 

Specific Outcomes and Assessment Criteria: 

SPECIFIC OUTCOME 1 
Explain rules and regulations related to foreign finance loans. 

ASSESSMENT CRITERIA
 

ASSESSMENT CRITERION 1 
1. The nature of the product is understood and explained according to the specific bank's policy and procedure. 
ASSESSMENT CRITERION RANGE 
Types of foreign finance loans, the nature of the underlying transaction, how the product works, the process for payment, the parties to the transactions and their rights and obligations, terms and conditions, pricing, features and benefits. Evidence of competence across the full range is required.
 

ASSESSMENT CRITERION 2 
2. The relevant South African legislation affecting foreign finance loans is identified and explained in line with the intention of the legislation, and bank policy and procedure in the manner required by the bank. 
ASSESSMENT CRITERION RANGE 
Exchange Control regulations, Bills of Exchange Act. Evidence of competence across the full range is required.
 

ASSESSMENT CRITERION 3 
3. The relevant international regulations and accepted practice governing foreign finance loans are understood and explained in the manner required by the bank. 
ASSESSMENT CRITERION RANGE 
Exchange rates, credit options, international payment systems, SWIFT messages and format. Evidence of competence across the full range is required.
 

ASSESSMENT CRITERION 4 
4. The risks and risk management processes associated with the foreign finance loans are understood and explained in the manner required by the bank. 
ASSESSMENT CRITERION RANGE 
Risks from the client's and the banks perspective, country risk, acceptable practice, insurance, payment terms, certain technical risks, exchange rate risk, credit risk, risk associated with non-compliance with the terms and conditions of the loan, basic risk management practices associated with foreign finance loans. Evidence of competence across the full range is required.
 

ASSESSMENT CRITERION 5 
5. The specific banks electronic process for processing foreign finance loans is understood and explained in the manner required by the bank. 
ASSESSMENT CRITERION RANGE 
Access to the system, opening a record, printing records/ reports, making amendments, correcting mistakes, processing and capturing rules and regulations.
 

SPECIFIC OUTCOME 2 
Arrange the utilisation of the foreign finance facility. 

ASSESSMENT CRITERIA
 

ASSESSMENT CRITERION 1 
1. Details of the requirements for a foreign finance facility are submitted to the credit authority in the manner required by the bank. 

ASSESSMENT CRITERION 2 
2. The client's request/instruction is checked against the authorised credit limits and the terms of the credit facility. 

ASSESSMENT CRITERION 3 
3. Where necessary the request/instruction is referred for higher authorisation according to the bank's credit policy and procedure. 

ASSESSMENT CRITERION 4 
4. The authorised facility and the associated terms are recorded in the manner required by the bank. 

ASSESSMENT CRITERION 5 
5. Changes to the loan are recorded in the manner required by the bank and in line with exchange control regulations. 

SPECIFIC OUTCOME 3 
Source the foreign funds. 

ASSESSMENT CRITERIA
 

ASSESSMENT CRITERION 1 
1. The details of the loan are checked for accuracy in terms of the client's instructions, conformity to the loan terms and conditions and according to standard procedures. 

ASSESSMENT CRITERION 2 
2. The foreign finance loan is raised through liaison with the treasury according to standard procedures. 

ASSESSMENT CRITERION 3 
3. The details of the deal are confirmed according to standard procedures. 
ASSESSMENT CRITERION RANGE 
Amount, currency, exchange rate, interest rate/margin, interest amount, settlement arrangements, date and maturity date of the loan. Evidence of competence across the full range is required.
 

ASSESSMENT CRITERION 4 
4. The funds are disposed of in terms of the client's request/instructions and according to standard procedures. 

ASSESSMENT CRITERION 5 
5. The customer is advised of the conclusion of the transaction according to standard procedures. 

ASSESSMENT CRITERION 6 
6. The draw down of funds is recorded according to standard credit and internal accounting procedures and in line with exchange control requirements. 

SPECIFIC OUTCOME 4 
Process loan transactions. 

ASSESSMENT CRITERIA
 

ASSESSMENT CRITERION 1 
1. Access to foreign finance funds/loan/facility is handled in line with standard credit and internal accounting procedures and according to exchange control requirements. 

ASSESSMENT CRITERION 2 
2. Foreign funds paid and received in relation to the loan are correctly applied to loan/facility/corresponding transactions in the manner required by the bank and in line with exchange control regulations. 

ASSESSMENT CRITERION 3 
3. Information relating to the loan is provided to the client, credit authority, and/or other appropriate parties in line with standard procedures. 
ASSESSMENT CRITERION RANGE 
Statements, details of entries passed, balances, interest and charges. Evidence of competence across the full range is required.
 

SPECIFIC OUTCOME 5 
Arrange repayment of the foreign finance loan. 
OUTCOME RANGE 
Foreign finance loans and refinanced/rollover transaction. 

ASSESSMENT CRITERIA
 

ASSESSMENT CRITERION 1 
1. Prior to the due date, the client is notified of the maturity date of the loan and instructions regarding repayment are obtained in the manner required by the bank. 

ASSESSMENT CRITERION 2 
2. Timely repayment is arranged using the appropriate exchange rate mechanism, in line with the client's instructions and standard procedures. 
ASSESSMENT CRITERION RANGE 
Drawing currency under an FEC (forward exchange contract); recovery of funds from a foreign currency account; purchase of forex from treasury; recovery of Rand equivalent from a domestic account. Evidence of competence across the full range is required.
 

ASSESSMENT CRITERION 3 
3. Repayment of the loan is effected for the value date in terms of the facility, exchange control requirements and on the basis of the client's instructions. 

ASSESSMENT CRITERION 4 
4. Details of the repayment are recorded against the client's credit facility in line with standard procedures. 

ASSESSMENT CRITERION 5 
5. Revenue related to the loan is recovered and appropriately allocated in line with standard policy and procedure. 

SPECIFIC OUTCOME 6 
Arrange rollover of the loan. 

ASSESSMENT CRITERIA
 

ASSESSMENT CRITERION 1 
1. Credit approval for refinancing/rollover is obtained in the manner required by the bank. 

ASSESSMENT CRITERION 2 
2. The refinancing request is checked for compliance with Exchange Control regulations or referred for approval as required by the bank. 

ASSESSMENT CRITERION 3 
3. Details of the refinancing/rollover requirements are confirmed with the client and recorded in the manner required by the bank. 
ASSESSMENT CRITERION RANGE 
Amount, currency, exchange rate, interest rate/margin, interest amount, settlement arrangements, date and expiry date of the loan. Evidence of competence across the full range is required.
 

ASSESSMENT CRITERION 4 
4. The refinancing/rollover of the loan is arranged through liaison with treasury in the manner required by the bank. 

ASSESSMENT CRITERION 5 
5. Appropriate additional charges and commissions associated with the rollover are recovered in line with the bank's policy and procedures. 


UNIT STANDARD ACCREDITATION AND MODERATION OPTIONS 
1. Anyone assessing a learner against this unit standard must be registered as an assessor with the relevant ETQA.

2. Any institution offering learning that will enable achievement of this unit standard or assessing this unit standard must be accredited as a provider with the relevant ETQA.

3. Moderation of assessment will be overseen by the relevant ETQA according to the moderation guidelines in the relevant qualification and the agreed ETQA procedures.

Therefore anyone wishing to be assessed against this unit standard may apply to be assessed by any assessment agency, assessor or provider institution which is accredited by the relevant ETQA. 

UNIT STANDARD ESSENTIAL EMBEDDED KNOWLEDGE 
Detailed knowledge of specific banking poliyc and procedures relating to the task/function performed.
Working knowledge of internal and international payment systems.
Working knowledge of internal controls.
Working knowledge of appropriate SWIFT message formats.
Thorough knowledge of exchange rates and treasury procedures.
Working knowledge of relevant exchange control regulations.
Thorough knowledge of trade finance.
Thorough knowledge of the different types of foreign finance facilities.
Operating and computer systems knowledge sufficient to locate necessary information and complete the task
General understanding of the specific risks, relevant policies and laws relating to foreign exchange transactions.
General understanding of the different types of foreign finance facilities.
General knowledge of the requirements of the Banks Act.
Working knowledge of the Code of Banking Practice. 


Critical Cross-field Outcomes (CCFO): 

UNIT STANDARD CCFO IDENTIFYING 
The learner is able to understand the relationship between the foreign finance loan and exchange control regulations. 

UNIT STANDARD CCFO WORKING 
The learners is able to evaluate and process a foreign finance loan. 

UNIT STANDARD CCFO COMMUNICATING 
The learner is able to communicate effectively when handling applicable queries. 

UNIT STANDARD CCFO CONTRIBUTING 
The learner is able to use technology to process the drawing documents and payments. 

REREGISTRATION HISTORY 
As per the SAQA Board decision/s at that time, this unit standard was Reregistered in 2012; 2015. 

QUALIFICATIONS UTILISING THIS UNIT STANDARD: 
  ID QUALIFICATION TITLE PRE-2009 NQF LEVEL NQF LEVEL STATUS END DATE PRIMARY OR DELEGATED QA FUNCTIONARY
Elective  20185   Further Education and Training Certificate: Banking  Level 4  NQF Level 04  Reregistered  2023-06-30  BANKSETA 


PROVIDERS CURRENTLY ACCREDITED TO OFFER THIS UNIT STANDARD: 
This information shows the current accreditations (i.e. those not past their accreditation end dates), and is the most complete record available to SAQA as of today. Some Primary or Delegated Quality Assurance Functionaries have a lag in their recording systems for provider accreditation, in turn leading to a lag in notifying SAQA of all the providers that they have accredited to offer qualifications and unit standards, as well as any extensions to accreditation end dates. The relevant Primary or Delegated Quality Assurance Functionary should be notified if a record appears to be missing from here.
 
1. Absa Learning & Development 
2. Bidvest Bank 
3. Chartall Business College 
4. Cornerstone Performance Solutions (Pty) Ltd 
5. Felix Risk Training Consultants 
6. Firstrand Bank - Benmore 
7. Nedbank Ltd 
8. The Facilitation Workshop 



All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.