The Bankers’ Duty of Confidentiality

Its Origins and Practical Application in Tanzania

Abstract

The officials of the bank have the duty to respect the principle of confidentiality in their daily banking activities. The principle of confidentiality binds the bank not to disclose the affairs of the customer of the bank to a third party. But in practice this is not the case. In the circumstances the law requires the Bank of Tanzania, commercial banks and financial institutions to disclose the affairs of a customer’s account. However, in case the bank discloses such information under the compulsion of law, the customer cannot challenge the disclosure. The disclosure of the customer’s information to a third party, despite the compulsion by law, still is veiling the customers’ information to unintended person within the banker-customer relationship. The banker has to disclose with consciousness because its abuse may entitle the customer to take legal action against the banker.