ABSTRACT

Banking secrecy is a fundamental principle of banking law that seeks to protect the confidentiality of information entrusted by customers to financial institutions. In Cameroon, this principle is principally governed by Law No. 2022/006 of 27 April 2022 Governing Banking Secrecy, which imposes a legal obligation on banks and their personnel to preserve the confidentiality of customer information. However, contemporary developments in financial regulation, anti-money laundering measures, counter-terrorism financing initiatives, and regulatory supervision have increasingly required banks to disclose information to competent authorities in specific circumstances. This has generated a legal tension between the protection of customer confidentiality and the demands of transparency and regulatory compliance. This study examines the effectiveness of banking secrecy in Cameroon by analyzing its legal foundations, scope, nature, and practical application within the banking sector.It questions the effectiveness of banking secrecy under Cameroonian law. The research adopts a qualitative doctrinal methodology, relying on the analysis of statutes, case law, international instruments, scholarly writings, and relevant regulatory frameworks. The findings reveal that banking secrecy remains an important legal principle that promotes customer confidence, privacy, and trust in financial institutions. However, its effectiveness has been considerably qualified by numerous statutory and regulatory exceptions permitting disclosure to judicial authorities, financial intelligence units, tax administrations, and banking regulators. The study further finds that while these disclosure mechanisms are necessary for combating financial crimes and ensuring regulatory oversight, the broad scope of certain exceptions creates uncertainty regarding the extent of confidentiality protection available to customers. Consequently, banking secrecy in Cameroon no longer operates as an absolute obligation but rather as a principle of qualified confidentiality subject to overriding public interest considerations. The study concludes that although the legal framework governing banking secrecy in Cameroon provides a reasonable balance between confidentiality and transparency, challenges relating to legal clarity, enforcement, institutional coordination, and public awareness continue to affect its effectiveness. It recommends the adoption of clearer guidelines on disclosure obligations, strengthened regulatory oversight, and enhanced compliance mechanisms within financial institutions, and continuous training for banking personnel. These measures would contribute to a more coherent framework capable of safeguarding customer confidentiality while meeting legitimate regulatory and public interest objectives.

CHAPTER ONE

GENERAL INTRODUCTION

The duty of banking secrecy by a banker has become a critical issue in modern banking law, particularly within regulatory environments that demand increased transparency and accountability. While banking secrecy has traditionally governed the banker–customer relationship, recent legal developments, especially in the areas of anti-money laundering and financial regulation, have introduced circumstances under which banks are required to disclose confidential information. This has created a legal tension between the duty of confidentiality and the obligation of disclosure.

In Cameroon, banking secrecy is covered by law No 2022/06 of 27 April 2022 governing banking secrecy, with BEAC as a supervisory authority. This study therefore examines the legal nature, scope, and limits of banking secrecy in Cameroon, with a view to assessing how effectively the law balances the protection of customer confidentiality with the demands of regulatory transparency.

This chapter looks at the evolution of Banking secrecy in the background to the study, statement of the problem, research question and objective, literature review, theoretical framework, the justification to the study, significance, scope of the study and key terms.

• BACKGROUND TO THE STUDY

The development of banking secrecy, which has long constituted one of the foundational principles of banking law. From its earliest origins, the banker–customer relationship has been characterized by confidence, discretion, and trust. Banking transactions necessarily involve the handling of sensitive financial information, including account balances, transactional records, creditworthiness, and investment activities. As a result, the law imposed upon bankers a duty to maintain strict confidentiality over all information obtained in the course of their professional dealings. This duty was not initially formulated through statutory intervention but emerged as an implied term of the contractual relationship between banker and customer, reinforced by professional ethics and commercial usage.[1]

The classical legal expression of this principle is found in the decision of Tournier v. National Provincial and Union Bank of England[2], where the Court of Appeal authoritatively established that confidentiality forms an implied term of the banker–customer contract. In that case, the Court held that a banker is under a legal obligation not to disclose information relating to a customer’s account or affairs. However, the Court equally recognized that this obligation is not absolute, identifying four well-established exceptions under which disclosure may be justified: where disclosure is compelled by law, where there is a duty to the public, where the bank’s own interests require disclosure, and where the customer consents.[3] The jurisprudential importance of this decision lies in its recognition that banking secrecy, though fundamental, is inherently qualified. It reflects a balance between the protection of private financial information and the necessity of disclosure in specific circumstances dictated by law or public policy.

In civil law jurisdictions and mixed legal systems, including those influencing the legal order of Central Africa, banking secrecy has also been conceptualized as a manifestation of professional secrecy. Under this approach, confidentiality is not merely contractual but constitutes a statutory and professional obligation binding all persons who, by reason of their office or employment, have access to banking information. This broader conception of secrecy extends the duty beyond the banker as a contracting party to include employees, directors, auditors, regulators, and even third parties who may acquire confidential information in the course of banking operations. The evolution of banking secrecy in Cameroon   reflects this dual character, combining contractual, professional, and statutory elements. In Cameroon, for instance, Law No. 2022/006 of 27 April 2022 governing banking secrecy defines secrecy as an obligation of confidentiality covering all acts, facts, and information relating to clients known in the exercise of banking activities.[4] The law further extends this obligation to managers, staff, liquidators, and any person who, by virtue of their function, gains access to confidential banking information.[5] This demonstrates that banking secrecy in the contemporary Cameroon legal order is no longer merely an implied duty but a codified legal institution with clearly defined scope and subjects.

Notwithstanding its strong doctrinal foundation, banking secrecy has undergone significant transformation in response to the changing dynamics of the global financial system. The expansion of financial markets, the increasing sophistication of financial instruments, and the rise of cross-border transactions have exposed the limitations of an absolute conception of secrecy. In particular, the use of banking systems for illicit purposes such as money laundering, terrorist financing, tax evasion, and corruption has necessitated a reevaluation of the traditional approach to confidentiality. As a result, modern banking law has moved toward a qualified model of secrecy, in which confidentiality remains the general rule but is subject to legally recognized exceptions that permit or require disclosure.[6] There is the issue of disclosure which emerges not as a negation of secrecy but as its logical and necessary limitation, ensuring that banking confidentiality does not obstruct the administration of justice or the enforcement of regulatory frameworks.

This shift has been driven to a large extent by increasing regulatory pressure at the international level. Over the past three decades, global efforts to combat financial crime have led to the development of comprehensive standards aimed at promoting transparency and accountability within the financial system. The Financial Action Task Force (FATF) has played a central role in this process by establishing a set of recommendations that serve as the international benchmark for anti-money laundering and counter-terrorist financing measures. FATF Recommendation 9 explicitly provides that financial institution secrecy laws should not inhibit the implementation of these recommendations.[7] This provision underscores a fundamental change in legal policy: while banking secrecy remains important, it must not be allowed to impede effective regulation, investigation, or prosecution of financial crimes.

The practical implications of this shift are profound. Banks are no longer regarded solely as custodians of private financial information but are increasingly viewed as key actors in the prevention and detection of financial crime. They are required to implement customer due diligence measures, monitor transactions, maintain records, report suspicious activities, and cooperate with competent authorities. FATF Recommendation 31 further requires that competent authorities have timely access to financial information held by banks for use in investigations and prosecutions.[8] These obligations fundamentally transform the legal position of the banker, imposing positive duties of disclosure and cooperation that coexist with, and in certain cases override, the traditional duty of confidentiality.

The influence of these international standards is clearly reflected in the legal framework of the CEMAC region. The regional anti-money laundering regime has evolved significantly, particularly with the adoption of Regulation No. 01/CEMAC/UMAC/CM of 11 April 2016 on the prevention and repression of money laundering, terrorist financing, and proliferation in Central Africa[9]and this anti-money laundering regime is also adopted by Cameroon who is an active member state of the CEMAC Region. This regulation strengthened obligations of vigilance, reporting, and cooperation among financial institutions and regulatory authorities. It marked a decisive step in aligning the Cameroon legal framework with international standards and reinforced the role of disclosure as a central component of financial regulation. Subsequent developments, including more recent regulatory instruments adopted at the community level, indicate that this process of reform is ongoing, reflecting a continued commitment to enhancing transparency and regulatory oversight within the region.[10]

Within the Cameroon legal system, the obligation of disclosure is further shaped by a complex institutional framework involving both regional and national actors. Institutions such as COBAC and BEAC play a central role in the regulation and supervision of banking activities, while national bodies such as ANIF are responsible for the collection and analysis of financial intelligence. This multilayered system of governance means that the banker’s obligation of disclosure is not governed by a single source of law but by an interplay of community regulations, national legislation, and international standards.[11]

The relevance of this study is particularly evident in the manner in which the legislature  balances the competing demands of secrecy and disclosure the law on Banking secrecy which is Law No. 2022/006 provides a clear illustration of this dual approach. While it strongly affirms the principle of banking secrecy, it also identifies circumstances under which disclosure is permitted or required. These include disclosure authorized by the customer, disclosure to judicial authorities, regulatory bodies, tax and customs administrations, and declarations made to financial intelligence units in cases involving suspected financial crime.[12]The law further provides that banking secrecy is not opposable to certain authorities acting within the scope of their legal mandate, thereby reinforcing the primacy of public interest considerations in specific contexts.[13]

This legal framework reveals the central doctrinal tension that underpins the present study. On the one hand, banking secrecy serves essential functions, including the protection of individual privacy, the promotion of trust in financial institutions, and the stability of the banking system. On the other hand, the demands of modern financial regulation require a degree of transparency that necessarily limits the scope of confidentiality. The banker is therefore placed in a position of legal duality, required to reconcile the duty of secrecy with obligations of disclosure imposed by law. This tension is not merely theoretical but has significant practical implications for the operation of banking systems in Cameroon.

Moreover, the increasing diversification of financial services within the region has further heightened the importance of disclosure obligations. Regulatory frameworks now extend beyond traditional banking to encompass payment services, microfinance institutions, and other financial intermediaries.[14] These developments have expanded the scope of regulatory oversight and increased the need for information sharing among institutions, thereby reinforcing the centrality of disclosure within the legal framework governing financial activities.

Against this background, the Effectiveness of Banking Secrecy in Cameroon has raised fundamental questions regarding the nature, scope, and limits of confidentiality in modern banking law, as well as the extent to which banking secrecy can be protected within a legal system that continues to recognize secrecy as a core principle. The study therefore seeks to examine the application of the principle banking secrecy in Cameroon and instances where the banker may put aside the principle of secrecy and disclose information regarding the their clients.

1.2 STATEMENT OF THE PROBLEM

Despite the existence of legal frameworks such as Law No 2022/006 of 27 April 2022 governing banking secrecy in Cameroon, the effectiveness of banking secrecy remains questionable in practice that is, while these laws impose a duty of confidentiality on financial institutions, they also provide numerous exceptions particularly for judicial authorities, financial regulators and anti money laundering bodies which may limit absolute protection of customer information. Traditionally, banking secrecy has been regarded as a core legal obligation, rooted in the contractual and professional relationship between banker and customer, and aimed at protecting the confidentiality of financial information.[15] However, contemporary regulatory developments particularly in the areas of anti-money laundering, financial supervision, and tax enforcement have increasingly imposed duties on banks to disclose such information to competent authorities.[16]

This duality has considerable reduced the scope of banking secrecy. While secrecy remains formally recognized in both community and domestic legislation, numerous statutory exceptions now permit or compel disclosure, without clearly defining the limits of such obligations or their relationship to the duty of confidentiality.[17] As a result, it is unclear whether disclosure operates merely as an exception to secrecy or has evolved into an independent legal obligation of equal or superior force.

In practice, this lack of clarity places bankers in a difficult position, exposing them to potential liability either for not keeping to the principle of banking secrecy or for failure to disclose where required by law.[18] . It is therefore necessary to undertake a comprehensive legal analysis to determine the nature, scope, and limits of this obligation within the CEMAC region and to assess whether banking secrecy  is still a core principle of banking law or if it has become a simple exception.

[1] Cranston, Ross. Principles of Banking Law. 2nd ed., Oxford University Press, 2002.

[2] Tournier v. National Provincial and Union Bank of England [1924] 1 KB 461.

[3] Ibid

[4] Cameroon, Law No. 2022/006 of 27 April 2022 Governing Banking Secrecy, Section 1.

[5] Ibid., Sections 3–4.

[6] Ellinger, E.P., Eva Lomnicka, and Christopher Hare. Ellinger’s Modern Banking Law. 5th ed., Oxford University Press, 2011.

[7] Financial Action Task Force (FATF), International Standards on Combating Money Laundering and the Financing of Terrorism and Proliferation, Recommendation 9, 2012.

[8] Ibid., Recommendation 31.

[9] Regulation No. 01/CEMAC/UMAC/CM of 11 April 2016 on the Prevention and Repression of Money Laundering and the Financing of Terrorism in Central Africa.

[10] GABAC, “Textes Organiques,” 2024.

[11] CEMAC Convention of 1990 Establishing COBAC; Convention of 1992 on the Harmonization of Banking Regulation in Central Africa.

[12] Cameroon, Law No. 2022/006 of 27 April 2022, Section 6.

[13] Ibid., Sections 8–16.

[14] Regulation No. 04/18/CEMAC/UMAC/COBAC on Payment Services in CEMAC, 2018.

[15] Tournier v. National Provincial and Union Bank of England [1924] 1 KB 461.

[16] Financial Action Task Force (FATF), International Standards on Combating Money Laundering and the Financing of Terrorism and Proliferation, 2012.

[17] Cameroon, Law No. 2022/006 of 27 April 2022 Governing Banking Secrecy, Sections 6–16.

[18] Ellinger, E.P., Eva Lomnicka, and Christopher Hare. Ellinger’s Modern Banking Law. 5th ed., Oxford University Press, 2011.