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Code of Banking Practice
This Code applies to all banking services that are, or are to
be, provided to individuals and small business customers.
The current
Code released by the Australian Bankers' Association, came into effect
on 1 August 2003 and replaced the 1993 version of the Code. Banks which
subscribe are bound by the Code.
The Code applies to all banking services (broadly defined to
include any financial service or product provided by a bank in Australia,
whether supplied directly or through an intermediary) that are, or are to be,
provided in Australia to individuals and small business customers irrespective
of the purpose for using the banking services. This is a significant change from
the 1993 version of the Code which only applied to individuals, and only where
they were using banking services for private or domestic purposes.
As with the 1993 version of the Code, the current Code reinforces the bank's
general duty of confidentiality towards a customer. This duty is expressly in
addition to any other requirements of the Privacy Act. Consistent with
the general law position, the Code excuses a breach of
confidentiality in the following circumstances:
- Where a law compels the bank to disclose an otherwise confidential matter.
- Where the bank has a duty to the public to disclose the matter.
- Where the bank's interests require disclosure.
- Where the customer expressly or impliedly consents to the bank disclosing
an otherwise confidential matter.
Banks need to consider the requirements of the Code and the general law duty
of confidentiality when dealing with customers. Even when the Privacy Act
would permit disclosure, the Code may not. This means, for example, that where
other private sector organisations may not need consent to a disclosure of
information which is for the primary purpose for which the information was
collected, or a related secondary purpose within reasonable expectation, a bank
is likely to need consent.
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