Top-Rated Free Essay
Preview

Bank Law

Good Essays
320 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Bank Law
Bank’s duty of confidentiality is an implied term of contract between customers and their banks and building societies that these firms will keep their customers’ information confidential. This confidentiality is not just confined to account transactions – it extends to all the information that the bank has about the customer.
But from time to time, banks end up releasing information that they should have kept secret about their customers to a third party which sometimes ends up in major consequences for the banks and their customers.

Bank’s duty of confidentiality has been eroded even before the September 11th attack, the 1924 case of TOURNIER V NATIONAL PROVINCIAL AND UNION BANK OF ENGLAND this is has shown that a banker’s duty of confidentiality is not absolute. The TOURNIER principles set out four areas where a bank can legally disclose information about its customer. These principles today are still in place and are:-

 Where the bank is compelled by law to disclose the information.
 If the bank has a public duty to disclose the information.
 If the bank’s own interests require disclosure.
 Where the customer has agreed to the information being disclosed.

Liability

If a bank discloses information about a customer in any circumstances other than those described above, then it has acted wrongly and should, as a general rule, be held liable for the reasonably foreseeable consequences of its action. . If a bank’s carelessness leads to a breach of confidentiality that does not reduce the fact that the bank acted in breach of a fundamental duty it owed to its customer.

o Compulsion by Law

The first exception in TOURNIER permits the bank to disclose confidential information under compulsion of law. This may be either at common law or statute.
The Committee on banking took the view that too many damages had been made by legislation into banking confidentiality, which give rise to the following legislation exceptions

You May Also Find These Documents Helpful

  • Best Essays

    Audit and Soups Inc.

    • 4884 Words
    • 20 Pages

    transmit information between the bank and the auditor as well as to validate the authenticity of…

    • 4884 Words
    • 20 Pages
    Best Essays
  • Satisfactory Essays

    Unit 2 p1 p2 p3

    • 394 Words
    • 4 Pages

    Task 1 – P1, Task 2 – P2, Task 3 – P3 Klieven Joern Chua PKS/KT EQUALITY It is the state of being equal, especially in status, right or opportunities. Treating some with respect and giving someone the things they need and be treated the same way normal people received. Most likely the people with disability. “Equality means "the state of being equal. " It's one of the ideals a democratic society, and so the fight to attain different kinds of equality, like racial equality, gender equality, or equality of opportunity between rich and poor, is often associated with progress toward that ideal of everyone being truly equal.”…

    • 394 Words
    • 4 Pages
    Satisfactory Essays
  • Better Essays

    This requirement assures that the defendant is properly made aware of the pending lawsuit. In order for notice to have sufficed, there must have been reasonable efforts to make the defendant aware. These efforts must be reasonably decided and must have been a reasonable likelihood of notice actually being conveyed. This was the case of Mullane v. Central Hanover Bank, as the court determined that in notifying other bank beneficiaries, the "means employed" must be comparable to that of someone who actually wants to inform the other…

    • 1189 Words
    • 5 Pages
    Better Essays
  • Good Essays

    Sara Strong Case Study

    • 830 Words
    • 4 Pages

    Has the bank made the correct decision by opting to follow the norms of the host…

    • 830 Words
    • 4 Pages
    Good Essays
  • Good Essays

    South West Cross Bank

    • 1715 Words
    • 5 Pages

    ‘My bank recently introduced, without warning, a bizarre system whereby a customer cannot telephone his branch manager, or write to him and expect him to…

    • 1715 Words
    • 5 Pages
    Good Essays
  • Good Essays

    Cases on Banking Law

    • 603 Words
    • 3 Pages

    As to the duty of confidentiality owed by a banker to his client: (Bankes LJ) "At the present day I think it may be asserted with confidence that the duty is a legal one arising out of contract, and that the duty is not absolute but qualified. It is not possible to frame any exhaustive definition of the duty. The most that can be done is to classify the qualification, and to indicate its limits." and "In my opinion it is necessary in a case like the present to direct the jury what are the limits, and what are the qualifications of the contractual duty of secrecy implied in the relation of banker and customer. There appears to be no authority on the point. On principle I think that the qualifications can be classified under four heads: (a) Where disclosure is under compulsion by law; (b) where there is a duty to the public to disclose; (c) where the interests of the bank require disclosure; (d) where the disclosure is made by the express or implied consent of the customer." Atkin LJ: 'I do not desrire to express any final opinion on the practice of bankers to give one another information as to the affairs of their respective customers except to say that it appears…

    • 603 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    . The Banking Regulation Act defines the business of banking by stating the essential functions of a banker .It also states the various other businesses a banking company may be engaged in and prohibits certain businesses to be performed by it.” mobile banking, Internet banking and ATM banking are a few ways by which bankers use technology today to beat the competition…

    • 1768 Words
    • 8 Pages
    Powerful Essays
  • Good Essays

    The Cobrapost sting operation and its aftermath have driven a coach and horses through the Indian banking system's ability to comply with international norms and Indian laws designed to prevent money laundering and funding of terrorism through know your customer (KYC) rules. This much is now well known; but what has not been sufficiently highlighted is that simultaneously, a wooden interpretation and application of these rules by banks - even when the Reserve Bank of India (RBI) has allowed sufficient discretion - continue to create problems for low-risk customers, making banking even more inaccessible to poor people.…

    • 966 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Closer Look

    • 1603 Words
    • 7 Pages

    During the orientation and a casual talk with the manager, she just reminded me about the rules and regulation of the bank especially the universal rule of all banks: Each and every record of the bank shall be made confidential in all manner and time.…

    • 1603 Words
    • 7 Pages
    Good Essays
  • Better Essays

    Confidential Information refers to the information obtained by the customer through the Bank for availing various services through OnlineSBI.…

    • 1283 Words
    • 6 Pages
    Better Essays
  • Powerful Essays

    Bibliography: ➢ S.S. & Kapoor, G.K. (1994) – “Banking Law and Practice”, S Chand & Company, New Delhi,…

    • 8461 Words
    • 34 Pages
    Powerful Essays
  • Powerful Essays

    2. Bank and Financial Institutions Act 1989 (BAFIA) – governing conventional banking and financial institutions…

    • 3308 Words
    • 14 Pages
    Powerful Essays
  • Good Essays

    Indian Banking Ecosystem

    • 1351 Words
    • 6 Pages

    The increasing complexity in the banking industry has made monitoring of transactions and operations a herculean task. This is especially in light of the rising cases of frauds that have tarnished the image of the sector as the ancillary to the economy’s growth.…

    • 1351 Words
    • 6 Pages
    Good Essays
  • Powerful Essays

    This paper shall start by defining the nature of banker-customer relationship and how it arises. It shall be followed by a discussion on the several circumstances whereby banks may be held liable for issuing negligent advice as well as the evolution of such finding of liability. Factors underpinning courts’ decisions vis-à-vis this issue shall also be identified. In the concluding portions, recommendations shall likewise be provided as to how courts should apply this doctrine in order to effectuate its purpose.…

    • 4381 Words
    • 18 Pages
    Powerful Essays
  • Good Essays

    Case Study Irm

    • 426 Words
    • 2 Pages

    R.A. 10173 or the Data Privacy Act is an act protecting individual personal information in information and communications systems in the government and the private sector, creating for this purpose a national privacy commission, and for other purposes. In this case, the bank used your personal information without you knowing. The bank is neither recognized as a PERSONAL INFORMATION CONTROLLER nor a PERSONAL INFORMATION PROCESSOR by the government so it does not have the right to use your personal information which caused your right to privacy to be violated.…

    • 426 Words
    • 2 Pages
    Good Essays