Banking Secrecy: Its Impacts and Legislative Aspect Comparative Study of Several Foreign and Arab States

Taj Al-Deen, Mayada

doi:10.33899/tanra.2009.161803

	Banking Secrecy: Its Impacts and Legislative Aspect Comparative Study of Several Foreign and Arab States
TANMIYAT AL-RAFIDAIN
Article 1, Volume 31, Issue 95, 2009, Pages 255-295 PDF (383.92 K)
DOI: 10.33899/tanra.2009.161803
Author
Mayada Taj Al-Deen
Abstract
Banking Secrecy is considered to be one of banking operation. It is the fundamental aspect of the bank, as it keeps customers secrets and not disclose them to any one else, and that because bank - customers relationship is however based on trust, which its basic pillar is the bank keeping the secrets of its customers. In fact, banking secrecy conflicts sometimes the efforts that aim to struggle money laundry, and that in not aiding to detect illegitimate money. As opinions about banking secrecy are different, the study exposed legislations of banking secrecy in several foreign and Arab states (united states of America, Swiss, France, Panama, Lishtintine, Egypt, United Arabic Emirates, Syria, Lebanon, Jordan and Iraq), to show that there is no conflict in applying the banking secrecy principle, and the efforts of struggling money laundry. There was an opinion advocates the existence of the conflict between them, As banking secrecy do not preclude the efforts of struggling money laundry. Depending on Arab and foreign states experiences, the states are divided into tight states in applying banking secrecy, and other ones are non-tight. The higher degree of banking secrecy is, the higher customers trust in the bank. There is an increase in the size of foreign deposits in banks. So, the rise in the size of foreign deposits considered as an indicator to the importance of applying banking secrecy in banks. .
Keywords
Banking Secrecy; Legislative Aspect

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