The Right to Financial Privacy in an Era of Mandatory Duties of Disclosure
38 Banking & Finance L. Rev. -- (2022)
18 Pages Posted: 20 Aug 2022
Date Written: June 1, 2021
The article deals with bank secrecy and the customer's right to financial privacy from a constitutional point of view. It contends that despite the great importance of the right to financial privacy, various interests may override it and justify a mandatory disclosure of information. The article proposes a formula for balancing the right with conflicting interests, and for determining situations in which the duty of disclosure should prevail.
For this purpose, the article analyses three mandatory reporting duties: In the domestic arena - the reporting duty under the anti-money laundering regime; in the international arena – the duty to report to foreign tax authorities the accounts of customers with foreign citizenship; and in the commercial arena - the reporting duty under the credit data sharing regime.
The Israeli law, under which the right to financial privacy is considered a constitutional right, is used in the article as a case study.
Keywords: bank secrecy, financial privacy, anti-money laundering, FATCA, credit data, bank-customer relationship
JEL Classification: K14, K23, K33, K34
Suggested Citation: Suggested Citation