Outline circumstances Under which the bank can lift the veil of secrecy

      

Outline circumstances Under which the bank can lift the veil of secrecy

  

Answers


Ruth
a) Where disclosure is under compulsion of law. For instance if Kenya Revenue Authority is mandated to investigate the affairs of a company, the company’s bankers are under duty to assist if necessary produce relevant books and documents;
b) Where there is a duty to the public to disclose. For instance, disclosure that a customer is trading with an enemy.
c) Where the interests of the bank require disclosure For instance disclosing the balance of a customer’s account when issuing a writ against him/her or calling up a guarantee for less than full amount; and
d) Where the disclosure is made by the express or implied consent of the customer. Any express authority to disclose must be in writing and singed by the customer. Implied authority to disclose may arise e.g., where the partners of a firm expect the bank manager to contact their office manager to discuss any banking business of the firm or where a banker answers another bank’s enquiry concerning their customer without first obtaining authority to reply.
NatalieR answered the question on February 14, 2022 at 13:18


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