ABSTRACT

As far back as 1924, in Tournier v National Provincial and Union Bank of England, it has been recognized that the relationship between a bank and its customer is anchored on confidentiality, a term implied in the contract between the parties. This is because banks are in possession of a huge volume of the customer’s financial data, at risk of exposure. This duty is further underscored by the fiduciary relationship between the parties. Also, as recipients of customers’ information, a duty of confidence arises, as stated in CF Partners LLP v Barclays Bank, when a person receives information which he knows or ought to know ought to be confidential. Nevertheless, bank’s duty of confidentiality is not absolute being limited by common law and statutory provisions.

            However, given legislative incursions, it appears that the exceptions to the duty of confidentiality now erode the duty itself, to the detriment of the customer. This situation has great implications especially in view of technological advancement in today’s world, and it has the propensity to erode the customer’s trust in the banking sector which is detrimental to the economy. There is a need limit the application of these exceptions in order to ensure the protection of customer information.

            Hence, the aim of this long essay is to examine the state of the Nigerian law on the bank confidentiality. It analyzes the evolution of bank’s duty of confidentiality as developed in common law and adumbrated upon by statute, and the exceptions to the duty. This study finds that there is a need to place the exceptions to the duty within narrow confines and to strengthen bank confidentiality laws, as it is revealed that the current regime does not offer adequate protection to customer data.