Bank Secrecy in Israel

One of the characteristics of the banking system in Israel is – or at least used to be - the relatively high level of bank secrecy. Bank secrecy is one of the key obligations imposed on the bank vis-à-vis its customer. It embodies not only the customer's interest but also the interest of society as a whole, which considers the right to privacy to be one of the basic human rights, especially when it comes to an individual's financial affairs. Despite the incontestable importance of bank secrecy, it is not, however, an absolute principle. There are certain exceptions where the bank is obligated to disclose information in connection with its customers. In this respect, bank secrecy in Israel in recent years has undergone a gradual process of the expansion of the exception which renders bank secrecy subordinate to the obligations of disclosure by virtue of the law. This exception has been significantly expanded, both in terms of the number of the laws that allow the disclosure of the information and in terms of the scope of use which the recipients of the information are allowed to make thereof. As a result of this process, bank secrecy is gradually losing its power. The article criticizes the process of the weakening of bank secrecy, and proposes ways to strengthen its power