Banking Secrecy Agreement

In the event of an infringement, a bank secrecy agreement includes remedies that banks can introduce. Most agreements stipulate that any breach constitutes „irreparable harm“ to the bank. The burden of payment of all lawyers` fees is imposed on the natural or legal person who has broken the promise of confidentiality. The agreement also states that the Bank will seek financial damages and injunctions in the event of other infringements. In reality, however, it is difficult to quantify the amount of the financial damage and the injunction as soon as the confidential information has been disclosed. Nevertheless, most banks will demand maximum damages in the event of a breach. If this is not acceptable to the covered entity, investment bankers may exclude a confirmation in which they undertake to be bound by the confidentiality obligations of the agreement between the client and the objective. Where an investment banker is required to obtain such confirmation, it should be verified and approved by the legal team before being signed. The obligation of confidentiality, although a mutual obligation, is imposed on the parties, with certain legal restrictions, for reasons of public order, of overr but justified private interests. Bank secrecy enjoys a harsh legal regime, as it seeks not only to protect privacy, but also to protect business secrecy. We hope that this is a useful guide to address the challenges posed by confidentiality agreements in the field of investment banking. If you said that the United States, Great Britain, the big G7 banks will not be dealing with offshore banking centres that do not respect the rules of the G7 banks, these banks could not exist. They exist only because they transact with standard banks.

[11] With regard to banking law, the obligation of confidentiality must be interpreted in a „flexible“ manner, which means that, even in the absence of an agreement reached by the parties, the bank is obliged not to disclose the Contracting Party`s information on its expiry date within the meaning of Article 111 of the said Law. . . .