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National Treasury is fast-tracking the General Laws Amendment Bill of 2025, a piece of legislation that seeks to give the Financial Intelligence Centre (FIC) the statutory power to conduct “lifestyle audits” on South African citizens.
A lifestyle audit is a state-led investigation into whether your standard of living matches your declared income. Under the proposed amendments to the Financial Intelligence Centre Act, the FIC will no longer just respond to suspicious financial transactions; it will have the power to proactively probe your personal life at the request of municipalities and other state organs.
Furthermore, the Bill mandates that banks and other “accountable institutions” must now keep your personal records for seven years, up from the previous five-year requirement, and grants the FIC expanded access to these records for the purpose of conducting these audits.
While the state argues these measures are required to satisfy the Financial Action Task Force (FATF), the reality is a significant expansion of state surveillance. We must ensure that these powers are accompanied by strict oversight and that they do not infringe upon the constitutional right to privacy.
However, National Treasury’s General Laws (Anti-Money Laundering and Combating Terrorism Financing) Amendment Bill, 2025 is far more than a “lifestyle audit” bill. It proposes a sweeping overhaul of several key pieces of legislation, moving the state into a proactive role of monitoring and policing everyday South African institutions.
Beyond the already controversial FIC Act amendments, this Bill seeks to:
The Bill proposes to turn the NPO Directorate from a registration body into a monitoring and enforcement agency with the power to impose heavy administrative sanctions and refer organisations for criminal investigation.
The Companies Act would be amended to allow for the deregistration of companies that fail to submit securities registers on time, with new powers for the Commission to impose administrative penalties
Changes to the FSR Act will allow regulators to bypass existing licensing requirements to regulate “new services” and grant them expanded powers to probe the private information of beneficial owners.
Questions and answers
The Bill defines it as an audit to determine if a person’s living standards are consistent with the income from legitimate sources that can be attributed to that person.
The FIC can conduct these audits at the request of an organ of state, a public entity, or a municipality, provided the FIC reasonably believes that entity has an interest in the information.
The Bill empowers the FIC to request access to any database held by a municipality or public entity. They also have regular access to information contained in registers kept by these entities in the execution of their statutory functions
es. The Bill extends the functions of the NPO Directorate to include the monitoring and enforcement of compliance. It also introduces administrative sanctions for non-compliance and sets a maximum penalty for offences at a fine of R1 million or five years imprisonment.
National Treasury states these amendments are necessary to strengthen the country’s Anti-Money Laundering system and prepare for the next FATF Mutual Evaluation, which begins in mid-2026
The Bill extends the Directorate’s functions to include the active monitoring and enforcement of compliance for all NPOs. It also grants the Director the power to issue compliance notices and impose administrative sanctions.
Yes. The proposed amendments to the Companies Act specifically empower the Commission to deregister a company if it fails to submit its securities register within the required period.
Under the FSR Act amendments, regulators can now license financial institutions for “new services” even if they don’t meet existing requirements in other laws. More critically, they gain the authority to demand information from and investigate the beneficial owners of these institutions.
For NPOs, the Bill provides for an Arbitration Tribunal to hear appeals against a refusal to register or the imposition of an administrative sanction. For companies, the Companies Tribunal would be empowered to review administrative penalties imposed by the Commission.
The draft Bill
Published government notice
In the News
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- BusinessTech — SARS is coming after taxpayers with a new weapon, leaving nowhere to hide
- The Citizen — Treasury asks for comment on Bill that aims to prevent financial crimes
- Business Insider — South Africa targets individuals behind money laundering, terror financing with new legislation
- IOL — Strengthening the Financial Intelligence Centre: New lifestyle audit powers unveiled
- Moonstone — Draft amendments aim to remedy gaps in AML framework
- African Law & Business — South Africa tightens financial crime legislation
- IT Web — From greylist to readiness: Inside SA’s 2026 anti-money laundering reforms
- Corruption Watch — Public comment sought on the latest General Laws Amendment Bill
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