Confidentiality Of Bahamian Bank Essay

Research Paper

There is no such thing as a duty of confidentiality with Bahamian banks. Please discuss in relation to Bank of the Bahamas and the latest publications on breeches on confidentiality with the banks and his customers.

By: Carnika Moncur

Course: BUSL256-Banking Law I

Professor: Randall Dorsette

Date: November 4th, 2014

Introduction

Definition of Duty of Confidentiality

According to http://www.wisegeek.com/what-does-duty-of-confidentiality-mean.htm a duty of confidentiality is referred to as an ethical obligation imposed on someone by either a special relationship recognized by the law due to the standards of certain professions or by the provisions of a binding contract. Or in other words it is the responsibility of the firm/professional

This duty is carried out in the banks and trust companies which is stated in section fifteen of the Banking and Trust Companies Regulation Act 2000. In the Bahamas the duty of confidentiality is expressed on the banker-customer contract on the development of the two parties’ relationship. Normally the duty of confidentiality is a fiduciary duty and the bank can be sued if a breach of confidentiality occurs. The duty of confidentiality involves keeping the customer’s identity, assets, liabilities, financial accounts and information a secret (this means the duty of confidentiality does not only refer to the customer’s accounts).

However according to http://www.mondaq.com/x/189046/wealth+management/Reconciling+FACTA+With+Bahamian+Laws the bank can be exempted from a breach of confidentiality by certain requirements such as disclosure is under compulsion of law, duty of the public to disclose, the interest of the bank requires disclosure and disclosure is implied by the customer. A bank is also exempted from breach of confidentiality if they have to present a clients’ financial information to the courts for court matters without the consent of the client, however this can be only done if the bank ensures that the court order is confidential. Despite this, based on the common law principles the courts will not allow banks to present them with a client’s

However banks that have branches which are in several jurisdiction are treated difeerent. In order to get a client to disclose information to a third party in this regard their has to be an indemnity clause on the terms of conditions form when opening a bank account which the client must signed. As a result a client’s information can only be disclosed based on the four requirements stated earlier in the report, except where permitted under Bahamian