BANK SECRECY: CURRENT STATE AND PROSPECTS FOR DEVELOPMENT

Abstract

The article is dedicated to banking secrecy, which is an important element of the financial system that ensures the protection of confidential information of bank clients from unauthorized disclosure. Particularly important is ensuring a balance between guaranteeing confidentiality and the state’s right to carry out financial monitoring.

The primary task of national legislators is to develop effective mechanisms that take into account international standards and global experience in protecting bank secrecy. Legislative techniques must align with European and international standards to avoid discrepancies in the interpretation of legal norms and to clearly distinguish between lawful access to banking information and violations of clients’ rights. This requires a systemic approach to regulating this area, considering both internal and external factors that influence confidentiality protection.

Theoretical and legal analysis of such categories as «bank secrecy», «confidential information», and «right to protection» shows that their incorrect interpretation or manipulation may lead to violations of bank clients’ rights. In the case of a breach of bank secrecy, significant negative consequences may arise, particularly for the reputation of business entities or individuals, undermining public trust in the financial system as a whole. Moreover, imperfections in the mechanisms for protecting bank secrecy may create grounds for abuses by both state authorities and third parties.

Legislators, in turn, must adhere to the principles of legislative technique when introducing new norms or amending existing laws that regulate banking activities and information protection. The main task is to provide universal applicability to the norms that simultaneously ensure the protection of the rights of law-abiding bank clients and contribute to effective control over financial offenses. This will allow finding the optimal model for ensuring transparency and reliability in the banking system, which, in turn, will contribute to strengthening financial stability and economic development.