The Challenges in Safeguarding Financial Privacy in South Africa

With the advancement of internet technologies, banks have adopted the use of technologies to improve the efficiency and effectiveness of banking services. These technological advancements have placed legal risks to person’s financial information. The existing legislation dealing with the protection of consumer’s right to privacy do not adequately protect these rights. Acts such as the National Credit Act 34 of 2005 makes it difficult to protect financial privacy as it enables banks to disclose their customers’ information that impacts on the customers’ right to financial privacy. Due to insufficient regulation of financial privacy, consumer’s right to privacy may be compromised. This article will discuss the legal problems encountered in protecting financial privacy in South Africa and questions of balancing the duty of confidentiality and the duty to disclose customer’s information.