A new bill from National Treasury could soon let the Financial Intelligence Centre (FIC) carry out lifestyle audits on South Africans. This is similar to what the South African Revenue Service (SARS) already does. SARS checks if your living standards match your reported income.
The proposed General Laws Amendment Bill of 2025 would give the FIC the power to initiate these audits without waiting for suspicious transactions. It aims to enhance transparency and combat money laundering and terrorism financing.
If the bill passes as is, the FIC could start audits at the request of government bodies or municipalities. It can also access databases held by these entities.
Recently, public feedback on the bill has been largely negative. Many South Africans feel it infringes on privacy rights and could lead to a more intrusive government. Organizations like the Law Society of South Africa (LSSA) are concerned, especially regarding legal privilege and the potential impact on smaller law firms. They wonder how to navigate client confidentiality if someone appears on a sanctions list.
On the other hand, some groups, like Corruption Watch, support the bill. They argue that it’s essential for keeping South Africa off the Financial Action Task Force (FATF) grey list. Last year, FATF noted that South Africa made significant progress in tightening anti-money laundering measures.
According to recent reports, the FIC would also be able to share personal information with other government sectors, such as the Border Management Authority. This could reshape how non-profit organizations are monitored, holding them to stricter standards.
While SARS currently conducts lifestyle audits, this new bill doesn’t grant them extra powers. Instead, it empowers the FIC to carry out these audits proactively. They can then collaborate with SARS and other agencies, creating a more integrated approach to tackling financial crimes.
Public commentary on the bill is open until February 13. The outcome could significantly change how financial oversight is approached in South Africa, reflecting a growing trend towards stricter regulatory measures globally.
For more details on public engagement regarding the bill, visit Dear South Africa.
