3 December 2007
The British Bankers Association (BBA) has called for a "balance" to be struck between customers' financial confidentiality rights and authorities' need to track down tax evaders.
According to the BBA, the legal duty that banks have to keep customer affairs confidential except for in four exceptional circumstances must be upheld when considering reforms.
HM Revenue and Customs (HMRC) recently held a consultation on offshore accounts, which recommended that all account providers complete a questionnaire to decide if they disclose details of the accounts.
This could lead to banks being forced to provide more account holder information to tax authorities than they are currently required to.
BBA Chief Executive Angela Knight said: "Customer confidentiality and confidence are at the heart of the success of personal banking in the UK.
"While we support efforts by the government to ensure arrangements are in place so people pay the tax they owe this needs to be balanced by regard for the law and personal privacy."
HMRC has come in for criticism from the BBA for its recent security lapse, which saw two discs containing the personal details of 25 million Britons lost in the organisation's internal postage system.
Speaking at the Association's annual conference on financial crime last week, Ms Knight said that the delay of several weeks in making the security breach public knowledge represented a "breach of duty of care" for HMRC.
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