How Bank Disclosure Of Customer Information Work For Security

How bank disclosure of customer information work for security

  • banks’ collection and storage of customer information
  • customers’ rights to access and correct information about themselves
  • the disclosure of personal information.

Concepts similar, but not the same

When Banks Required to Disclose Customer Information

Disclosure of information as required by law

  • Under income tax act.
  • Under the company acts.
  • Disclose to the Police.
  • Under the foreign exchange regulation act.

Disclose permitted by the banker’s practices and usages

With express or implied consent of the customer

To protect his own interest.

Banker reference

Disclosing confidential information

  • When the law compels it to: Banks sometimes have to give evidence about a customer’s affairs in court. Bank disclosure of customer information can also be required to give information to the Inland Revenue Department (under the Tax Administration Act 1994), to the Ministry of Social Development (under the Social Security Act 1964), and to a company liquidator (under the Companies Act 1993). Banks are also required to report suspicious transactions to Police (under the Financial Transactions Reporting Act 1996 and Anti-Money Laundering and Countering Financing of Terrorism Act 2009).
  • When it has a public duty to: This applies when there is a danger to the state or when the wider public needs protection against crime. A bank disclosure of customer information needs to balance the public interest with respecting a customer’s right to privacy when it considers providing information about that person to a third party.
  • When a bank must disclose information to protect its interests: This applies when a bank takes legal action against a customer (such as to recover a debt) or defends an action from a customer and needs to provide information about the customer’s affairs.
  • When a customer agrees: A bank can disclose customer information if the customer agrees. A bank must ensure the information is correct and within the scope of the customer’s consent. A customer may, for example, agree to the bank’s disclosure of information about one account only. If the bank releases information about other accounts, it breaches its confidence duty.

When a bank breaches confidentiality or privacy

Duty to the public to disclose

  1. When a bank asks for information from government officials concerning the commission of a crime.
  2. The bank considered that the customer was involved in activities prejudicial to the country’s interest.
  3. Where the bank’s book reveals that the customer is contravening the provision of any law.
  4. Where sizable fund arc is received from foreign countries by a constituent.

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