Delegates raise the issue of bank customer information security

At the plenary discussion session in the hall about the draft Law on Credit Institutions (amended) on the afternoon of June 10, delegate Truong Trong Nghia (HCMC delegation) stated that currently, according to international practice, there are a number of professions where customer information confidentiality is strictly protected by the constitution and law, including banking, medicine, and lawyers.

“Banking secrets, like other secrets, belong to private life, family secrets, and personal secrets. Protecting private life, personal and family secrets is a human right recognized in international conventions and Vietnam is a member,” said Mr. Nghia.

According to Mr. Nghia, Clause 3, Article 14 of the draft Law stipulates that credit institutions and foreign bank branches are not allowed to provide customer information of credit institutions, foreign banks and branches except in cases where there is a request from a competent State agency as prescribed by law and with the consent of the customer.

Meanwhile, Article 21 of the 2013 Constitution stipulates that everyone has the right to inviolability of private life, personal secrets and family secrets. Information on private life and family secrets is guaranteed by law and Article 14 of the 2013 Constitution stipulates that human rights and civil rights can only be restricted according to the provisions of the Law in cases where it is necessary for national defense, security, and social order and safety.

Finance - Banking - Delegates raise the issue of bank customer information security — Delegate Truong Trong Nghia (Photo: Quochoi.vn).

Delegates believe that the current provisions in Article 14 of the draft law restrict the human right to information protection because the provisions on providing information according to Government regulations or the law are inadequate.

Mr. Nghia proposed that the draft Law amending Article 14 only provides customer information according to the provisions of the Law on Credit Institutions and related laws, not according to the law.

Decree 117 on information security stipulates in detail that customer information can only be provided according to specific provisions of the Act, the Law, and the National Assembly Resolution. He proposed to include this provision in Article 14 of the Law on Credit Institutions.

The second point that the delegate commented on was that information should only be requested from customers related to the case being investigated and the requested content is also necessary for the investigation.

"It's impossible to suddenly receive an official dispatch saying to provide customer information," Mr. Nghia raised the issue.

Decree 117 expands the subjects required to provide information to members of government inspection teams, members of audit teams, district-level investigation agencies, and customs.

"According to my calculations, there are up to ten thousand people who have the right to request customer information. Therefore, we propose to redesign as proposed and if included, include in the Law the requested subjects," he said.

In addition, Mr. Nghia said that for those subjects, only the head and deputy head can sign the request document and cannot be extended to the members of the delegation.

Finance - Banking - Delegates raised the issue of bank customer information security (Image 2). — Delegate Vu Thi Lien Huong (Photo: Quochoi.vn).

Agreeing with delegate Truong Trong Nghia, delegate Vu Thi Lien Huong (Quang Ngai delegation) proposed to add cases where customer information is provided or implemented according to legal regulations to Article 14, Clause 3.

“For example, in the case of a customer dying or losing civil capacity, an heir coming to request information or the law requiring the bank to make periodic reports. Thus, it is proposed to clearly stipulate in the draft Law which cases are allowed to provide customer information,” the female delegate suggested.

Previously, delegate Pham Van Thinh (Bac Giang delegation) proposed to add section 8 on customer information system regulations to Chapter IV on operations of credit institutions and foreign bank branches, with the spirit of customer information system being kept confidential but stipulating standard information structure associated with citizen identification number and tax code of organizations and individuals.

According to Mr. Thinh, this is to ensure that when necessary, the authorities will be able to look up all accounts of an organization or citizen as well as obtain data on the arising payment accounts of all organizations and individuals in the economy.

This section also needs to strictly regulate the responsibilities of credit institutions, organizations, and individuals opening accounts to ensure the legitimacy of the accounts, because if they are not legitimate, it will be an important factor leading to the motivation for illegal acts of organizations and individuals .

Source