Get premium membership and access questions with answers, video lessons as well as revision papers.
In this context, the term absolute means fixed, or non-variable. On the other hand, Qualified means fitted, achieved or accomplishment. The statement "the duty of secrecy is not absolute but qualified " simply means that the contract of the bank customer relationship of confidentiality is not fixed (absolute)but qualified when both the banker and the customer acts accordingly to rights and duties. However The banker can lift the veil of secrecy under the following circumstances
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;
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 13:44