'Banking confidentiality does not apply in criminal investigations, Lawyers for Liberty (LFL) said today following reports that the authorities are now hunting down those who allegedly leaked documents from the ongoing investigation on debt-laden 1Malaysia Development Bhd (1MDB).
Instead, the civil liberties group said the act of whistleblowing to the press signals the loss of public trust in the ability of local authorities to conduct fair probes.
“It is misleading and disingenuous to assert banking confidentiality in such a case as clearly, such privilege does not apply to criminal investigations,” LFL executive director Eric Paulsen said in a statement.
“How else would corruption, criminal breach of trust, money laundering or tax evasion be exposed if not through banking details?”
“Such investigations unfortunately lend further credence that law enforcement authorities remain highly politicised and selective as the disclosure had exposed serious criminal offences which should override any confidentiality provisions,” the lawyer added.
Paulsen said although banking confidentiality should normally be maintained, public interest takes a higher priority when it comes to possible embezzlement or mismanagement of public funds worth millions or billions of ringgit.'
- See more at: http://www.themalaymailonline.com/malaysia/article/no-banking-secrets-in-criminal-cases-lawyer-group-says-as-cops-chase-1mdb-w#sthash.GfYLzU35.dpuf
IMHO: We are aware of BAFIA and other secrecy laws which are vital for any financial system. But to emphasize and enforce more on secrecy despite knowledge of illegal transactions, we are in danger of having a system which encourages illegal money laundering and other activities. It seems ironic that laws which are meant to ensure smooth running of a system, if not properly enforced, encourage an illegally run one. I am sure many executives are often put in a dilemma when faced with whether to tell the truth or face the sack.
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Instead, the civil liberties group said the act of whistleblowing to the press signals the loss of public trust in the ability of local authorities to conduct fair probes.
“It is misleading and disingenuous to assert banking confidentiality in such a case as clearly, such privilege does not apply to criminal investigations,” LFL executive director Eric Paulsen said in a statement.
“How else would corruption, criminal breach of trust, money laundering or tax evasion be exposed if not through banking details?”
“Such investigations unfortunately lend further credence that law enforcement authorities remain highly politicised and selective as the disclosure had exposed serious criminal offences which should override any confidentiality provisions,” the lawyer added.
Paulsen said although banking confidentiality should normally be maintained, public interest takes a higher priority when it comes to possible embezzlement or mismanagement of public funds worth millions or billions of ringgit.'
- See more at: http://www.themalaymailonline.com/malaysia/article/no-banking-secrets-in-criminal-cases-lawyer-group-says-as-cops-chase-1mdb-w#sthash.GfYLzU35.dpuf
IMHO: We are aware of BAFIA and other secrecy laws which are vital for any financial system. But to emphasize and enforce more on secrecy despite knowledge of illegal transactions, we are in danger of having a system which encourages illegal money laundering and other activities. It seems ironic that laws which are meant to ensure smooth running of a system, if not properly enforced, encourage an illegally run one. I am sure many executives are often put in a dilemma when faced with whether to tell the truth or face the sack.
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