Banking secrecy

Banking secrecy is a legal and ethical principle that protects the confidentiality of a customer’s financial information held by a bank. It ensures that details about an individual’s accounts, transactions, and personal data are kept private and only shared with authorized parties, such as the account holder or under specific legal circumstances. This confidentiality fosters trust between clients and banks, encouraging people to save and invest freely. However, some countries have relaxed banking secrecy rules to combat illegal activities like money laundering and tax evasion, requiring banks to share information with authorities when necessary.