What are capital controls? When governments limit money leaving the country
By SendPay Business · · 2 min read
Capital controls are rules that limit how much money can move into or out of a country. They can cap cash withdrawals, block transfers abroad, or require approval before buying foreign currency. Governments usually bring them in during a crisis to stop money rushing out.
Common types
- Caps on how much can be sent abroad each month.
- Limits on buying foreign currency.
- Daily limits on cash withdrawals from banks.
- Taxes or waiting periods on money coming in or going out.
Real examples
Iceland brought in capital controls after its banks collapsed in 2008 and lifted most of them in 2017. Cyprus used them in 2013 during its banking crisis, and Greece in 2015, when banks shut for weeks and withdrawals were capped.
What they mean for businesses
Paying overseas suppliers or bringing profits home can become slow or impossible. Firms trading with a country under controls often need extra paperwork and should expect delays.
Where SendPay fits
SendPay platforms let customers hold GBP, EUR and USD and exchange between them at a fee the platform owner sets, powered by licensed partners. SendPay doesn't offer trading.
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This guide is general information, not legal or financial advice. SendPay Business is a technology company, not a bank, and does not take deposits; regulated services on the platforms are provided by licensed partners. PayPal, Patreon and Substack are named as reference points only and are not affiliated with SendPay Business.