customer’s account or any information concerning the customer or his affairs. • Any disclosure of customer’s affairs by his banker can affect the credit or reputation of the customer and the banker may be held for damages for breach of contract. • The obligation of secrecy, however may not be considered essential on the following occasions. BANKER’S DUTY OF SECRECY • 1. Where there is compulsion of law: • by the order to competent court under the provision of section 6 of banker’s Books evidence Act, 1891 • to report all suspicious financial transactions to chairman NAB under section 20 of the National Accountability Bureau (NAB) ordinance 1999 • all suspicious financial transactions which could constitute or to be related to illicit narcotics activities shall be reported to director general control of narcotics under section 67 of control of Narcotics substance Act 1997 • section 165 of criminal procedure code authorizes an investigating police officer to search the record of bank provided prior permission from session judge. • the income tax officer may inspect the book of the banker in accordance of section of income tax ordinance 2001 with prior approval of income tax commissioner. BANKER’S DUTY OF SECRECY • Where there is duty to the public to disclose. • Where disclosure is necessary to avert a danger to the state. During the national emergencies. Banker may make certain disclosures about the unsatisfactory and suspicious nature and operation of a customer’s account. • Where the interest of the bank require disclosure. • Sometimes bankers sue their customer to recover the amount due in his loan or over draft account. In such a case banker may have to disclose some aspects of the customer’s transactions. BANKER’S DUTY OF SECRECY • Where there is an express or implied consent of the customer. • A customer may give standing instructions to his banker to supply statement of account to his auditors or some professional advisor for certain period of time. • Where there is an established practice amongst bankers to exchange information on their customer’s account as a common curtsey. • This kind of disclosure falls under implied consent of the customer. • It is an established practice among bankers based of reciprocal basis. • While replying such inquiries care should be exercised not to disclose the actual position of the account of the customer and should confirm his operation only to usual expressions like “fair” “good” “satisfactory”. BANKER’S DUTY OF SECRECY • BANKING COMPANIES ORDINANCE 1962 SECTION 33A. • FIDELITY AND SECRECY • (1) Subject to sub section (4), every bank and financial institution except otherwise required by law, observe the practices and usage customary among bankers and in particular shall not divulge any information relating to the affairs of its customers except in circumstances in which it is in accordance with law practice and usage customary among bankers necessary or appropriate for a bank to divulge such information. BANKER’S DUTY OF SECRECY • (2) Every president, chairman, member of the Board, administrator, auditor, advisor, officer or other employee of any bank and financial institution shall, before entering upon his office, make declaration of fidelity and secrecy in such form as may be prescribed. • (3) Notwithstanding anything contained in sub-section(1)and (2),every balance sheet and profit and loss account statement prepared by a bank and financial institution shall include statements prepared in such form and manner as the State bank may specify in respect of written off loans or any other financial relief of five hundred thousand rupees or above allowed to a person as well as the provision, if any, made for bad or doubtful debts. • BANKER’S DUTY OF SECRECY • (4) The State bank of Pakistan may, if satisfied that it is necessary so to do at the time of holding general elections under any law relating thereto, publish a list of persons to whom any loans, advances or credits were extended by a bank or financial institution, either in their own names or in the names of their spouses or dependents or of their business concerns (if mainly owned and managed by them (which were due and payable and had not been paid back for more which were due and payable and had not been paid back for more than one year from the due date or whose loans were unjustifiably written off in violation of banking practices, rules or regulations on or after such date as may be determined by the Government. • Provided that before publishing the name of any person in any such list he shall be given prior notice and, if he so requests an opportunity of hearing.