South Africa has been rocked by allegations that billions of rands were moved offshore through a fintech company linked to Democratic Alliance (DA) MP Mark Burke.

Kastelo, which is linked to Burke, is under investigation by the South African Reserve Bank (SARB) over suspected breaches of the country’s exchange-control laws over the money's movement.

It is alleged that the company moved R4 billion offshore, using the foreign-exchange allowances of individual South Africans to acquire foreign currency and transfer it out of the country, without the individuals being aware of what was being done in their name.

The allegations caused a political headache for the DA, which initially stood by Burke but has since made a U-turn and removed him from Parliament’s finance-related committees while the matter is being investigated.

Kastelo went to court to challenge the Reserve Bank’s decision to block its funds, but the court dismissed the application and allowed the blocking order to remain in place.

How the R4 billion moved out of South Africa
According to the Reserve Bank’s court papers, the money was moved offshore through a model that relied on Kastelo’s clients' foreign-exchange allowances.

Under the bank's regulations, individuals have access to a Single Discretionary Allowance (SDA) of up to R1 million a year and Foreign Investment Allowance (FIA) of up to R10 million a year to move money offshore.

According to the bank, Kastelo had 891 clients, giving the company access to R891 million in SDA allowances and R8.9 billion in FIA allowances in an annual cycle.

The bank alleges that Kastelo used these allowances to facilitate the purchase of foreign currency and the transfer of funds out of South Africa.

"The dominant purpose of the business model is to circumvent the Exchange Control Regulations by facilitating acquisition of foreign currency for the applicant’s own benefit through the use of third parties without permission from the department."

The Reserve Bank said that by November 21, 2025, its investigation had identified transactions worth about R4 billion that it suspected were linked to exchange-control violations.

The bank’s concern was that the allowances may not have been used for the clients’ own investments, but to move money offshore for Kastelo's benefit.

The court papers say some clients were offered bonuses of up to R2,000 for use of their SDA and up to R10,000 for using their FIA.

The Reserve Bank also raised concerns about how some clients were able to access large loans to fund the transactions. It said some clients earned about R15,000 a month but received loans of around R249,000.

The bank added some clients did not fully understand what was being done in their names, including the opening of foreign bank accounts.

Kastelo responds
However, Kastelo has disputed the Reserve Bank’s allegations and maintained that its business model was lawful.

According to the company’s court papers, clients gave Kastelo discretionary investment mandates to manage their money. Kastelo said it used the funds in an automated trading strategy that looked for price differences in the crypto market.

The company said the value was converted into foreign currency, sent offshore for trading and then returned to South Africa in rands at the end of each trading cycle.

Kastelo argued that the money was therefore not permanently exported from South Africa and that its model operated within the country’s exchange-control system.

The DA has since removed Burke from its finance structures. The ANC. however, said the move does not shield Burke from accountability. The party said it would lay criminal charges against Burke and Kastelo.

“The DA has consistently demanded accountability from others when allegations arise, yet appears to apply a different standard when confronted with serious questions involving its own leadership structures,” the ANC said.

“Political office cannot shield anyone from scrutiny, and no individual is above the law.”

The Economic Freedom Fighters (EFF) also weighed in, calling for the investigation into Kastelo to be pursued to its conclusion.

"The allegations are not mere administrative or regulatory infringements. They describe the constituent elements of financial crime: the unauthorised use of other people’s money and identities, the deliberate concealment of offshore accounts from the very clients whose allowances were used to open them, and the deception of the central bank about what the business was actually doing."

Burke distanced himself from Kastelo, saying he had resigned from the company in 2024 to pursue a political career and ceased serving as chairperson of the broader Kastelo Group in February 2026.

Source: https://iol.co.za/news/politics/2026-08-23-inside-the-r4bn-money-trail-rocking-the-da-and-mark-burke/