banks duty of secrecy

Q1357. Does my bank have the right to disclose information about my account to a third party?

No, your bank has no right to disclose information about your account to a third party. The bank owes you a duty of secrecy. TOURNIER V. NATIONAL PROVINCIAL & UNION BANK OF ENGLAND (1924) 1KB 46

Q1358. Is there any exception to the duty of secrecy?

Yes, the duty of secrecy will not be adhered to in the following instances;

  1. Where disclosure is under compulsion by law.

  2. Where there is duty to the public to disclose.

  3. Where the interest of the bank requires disclosure

  4. Where the customer consent to disclosure either expressly or by implication

TOURNIER V. NATIONAL PROVINCIAL & UNION BANK OF ENGLAND (1924) 1KB 461

Q1359. Where the bank has a duty not to disclose, is this duty absolute?

No, the duty is not absolute. What is required is that the bank takes all precautionary measures to keep transaction and information of the customer confidential and secret, thus the bank will not be liable if after taking all measure to protect the information of the customer, a third-party gets hold of such information from another source. The bank is only to exercise a duty of reasonable care. See HABIB (NIG) BANK V. KOYA (1992) 7 NWLR (PT 251) 43

Q1360. To what information does the obligation of secrecy extend, is it limited to the time I operate an account with the bank or limited to transaction carried on in the account?

No, it goes beyond the state of your account or transactions carried out on your account it as well extends beyond the time that you close your account with the bank. Once a customer has closed his account with the bank, the bank is still not at liberty to give information against the customers. The duty of secrecy does not cease. SEE TOURNIER V. NATIONAL PROVINCIAL AND UNITED BANK OF ENGLAND (1924) IKB 481