Mr. Hylton explored the importance of a credit bureau to the efficiency of the financial sector and the case for a regional credit bureau. Evidence has shown that the presence of a credit bureau provides significant benefits to the country as a whole. By improving the access to information about applicants, this allows lenders to make more accurate predictions on repayment probability. In addition, it reduces the default rate as borrowers are cognizant that one’s reputation could be tarnished if payments are outstanding.

CUSTOMER CONFIDENTIALITY OF PARAMOUNT IMPORTANCE TO BANKS

Recent events involving the alleged exposure of confidential banking information has led to numerous discussions regarding the principle of bank/client confidentiality. Confidentiality is one of the fundamental principles upon which the banking industry has been built and is of paramount importance to Jamaican banks.

The members of the Jamaica Bankers Association (JBA) firmly believe that its employees must at all times observe and comply with the provisions of the Banking Act dealing with the confidentiality of customer information.

The Banking Act imposes on every bank employee a duty of confidentiality in relation to any information regarding the money or other relevant particulars of the accounts of customers, unless the disclosure is made in accordance with the limited exceptions specifically outlined in the Banking Act. The specific circumstances in which a disclosure can be made include, but are not limited to, the following:

(a) If the customer consents to the disclosure in writing,
(b) If the disclosure is ordered by the Court,
(c) If the Minister of Finance & Planning directs that the      disclosure be made (in certain limited circumstances),
(d) If the disclosure is required by some other Act (such      as the Money Laundering Act or the Terrorism      Prevention Act in which case the disclosure would      have to be made to the authority designated to      receive any such disclosures).

The members of the JBA are committed to establishing procedures to foster compliance by employees with the provisions of the Banking Act. In the rare cases in which a customer’s right to confidentiality may be breached by an employee, this is regarded as a serious breach and will result in appropriate disciplinary or other action against that employee. The JBA wishes to assure the members of the public that the confidentiality of customer information is one of the core principles by which we operate and is an obligation which we will continue to uphold.


October 11, 2006