Business · South Africa
FIC to Gain Powers for Lifestyle Audits Like SARS
Moneyweb · 2026/02/02
Summary
The South African government is planning to increase lifestyle audits through a new bill that will give the Financial Intelligence Centre (FIC) powers similar to those of the South African Revenue Service (SARS). Currently, SARS can conduct lifestyle audits to check if people's living expenses match their declared income, helping to uncover hidden wealth and tax evasion. The new bill will allow the FIC to also perform these audits, adding another layer of scrutiny to ensure transparency and combat financial crime. This move is part of broader efforts by National Treasury to strengthen financial oversight and curb illegal activities in the economy. Lifestyle audits can include investigations into spending habits, assets, and other financial behavior to detect inconsistencies or suspicious activities. The involvement of the FIC means there could be more thorough checks, especially on high-risk individuals and entities, helping officials to identify and stop illicit financial flows.
OnABudget takeaway: For consumers and small business owners, this means increased government monitoring of financial activities, urging everyone to maintain transparent and accurate records. Investors should also be aware that financial compliance is being tightened, which helps maintain a fair business environment.