Financial institution & financial intermediary that accepts deposits & channels those deposits into lending activities Explain.
Chapter 1- Inception
The definition of a bank varies from country to country. See the relevant country page (below) for more information.
Under English common law, a banker is defined as a person who carries on the business of banking, Which is specified as:
· Conducting current accounts for his customer
· Paying cheques drawn on him, &
· Collecting cheques for his customers
A bank is a financial institution & financial intermediary that accepts deposits & channels those deposits into leading activities, either directly or through capital markets. A bank connects customers that have capital deficits to customers with capital surpluses.
Due to their critical status within the financial system & the economy generally, banks are highly regulated in most countries. Most banks operate under a system known as banking where they hold only a small reserve of the funds deposited & lend out the rest for profit. They are generally subject to minimum capital requirements which are based on an international set of capital standards, known as the Basel Accords.
Law enforcement agency
In North American English, a law enforcement agency (LEA) is a government agency responsible for the enforcement of the law. Outside North American, such organizations are called police service.
Chapter-2 Question Analysis
Do you think the Law enforcing agency should have the right to investigate anyone’s bank information frequently?
In word the ans. Of this question is NO
Now I describe the reason of behind this-
THE BANK SECRECY ACT
The Financial Recordkeeping and Reporting of Currency and Foreign Transactions Act of 1970 is referred to as the Bank Secrecy Act (BSA). The purpose of the BSA is to require Bangladesh Financial institution to maintain appropriate records and file certain reports involving currency transactions and a financial institution’s customer relationships. Currency Transaction Reports (CTRs) and Suspicious Activity Reports (SARs) are the primary means used by banks to satisfy the requirements of the BSA. The record keeping regulations also include the requirement that a financial institution’s records be sufficient to enable transactions and activity in customer accounts to be reconstructed if necessary. In doing so, a paper and audit trail is maintained. These records and reports have a high degree of usefulness in criminal, tax, or regulatory investigations or proceedings.
The BSA consists of two parts: Title I Financial Recordkeeping and Title II Reports of Currency and Foreign Transactions. Title I authorizes the Secretary of the Department of the Treasury (Treasury) to issue regulations, which require insured financial institutions to maintain certain records. Title II directed the Treasury to prescribe regulations governing the reporting of certain transactions by and through financial institutions in excess of $10,000 into, out of, and within the Bangladesh. The Treasury’s implementing regulations under the BSA.
The implementing regulations under the BSA were originally intended to aid investigations into an array of criminal activities, from income tax evasion to money laundering. In recent years, the reports and records prescribed by the BSA have also been utilized as tools for investigating individuals suspected of engaging in illegal drug and terrorist financing activities. Law enforcement agencies have found CTRs to be extremely valuable in tracking the huge amounts of cash generated by individuals and entities for illicit purposes. SARs, used by financial institutions to report identified or suspected illicit or unusual activities are likewise extremely valuable to law enforcement agencies. Several acts and regulations expanding and strengthening the scope and enforcement of the BSA, anti-money laundering (AML) measures, and counter-terrorist financing measures have been signed into law and issued,
Chapter-3 Discussion Of The Answer Of Question
Through the world, privacy has big implications .most of the developed nations regard this fundamental right not only as a core requirement for ensuring the transparency of the actions of the actions of the unknown but as a tool to safeguard the anonymity of the possibility victim of information breach. In the United States of America separate laws and legislations regarding privacy are existent. When it comes to financial privacy ensuring proper justification of the actions of the law enforcement agencies is a must. USA has a unique legal act titled” right to financial privacy act” with effect from the year 1978. However the legal authorities of Bangladesh so far did not come up with such an act. During the ruling period of the last caretaker govt. the law enforcing agencies of Bangladesh repeatedly accessed information the financial account of the alleged persons suspected of money laundering. During this govt. process many unfair dents happened which is caused harassment to some individuals who were even backcrossed to such activities. These raised deep concerns about the righteousness of the accessibility of the bank information by the law enforcement agencies.
The central bank of Bangladesh so far came up with the “money laundering prevention act “ which is in effect from the year 2002 the act states that if found guilty any individual may be subject to legal actions. The act has empowered Bangladesh bank with the power of the enquiry similar to that of an officer-in charge of a police station . This has put the position of the anti-money laundering unit of the central bank in a similar role to that of policy hence it is worth discussing in consumption with discussion of the right of the law enforcement agencies accessing banking information’s of individuals
A critical explanation of just how unfair it is to the individuals whose financial records are being accessed by the law enforcement agencies frequently; reveals that even the most basic privacy of an individual is protected under the ‘universal declaration of human rights’ as published by the united nations in1948.let alone the financial privacy, article 12 of this declaration states that :’No one shall be subjected to arbitrary interface with his privacy, family, home or correspondent canon to attacks upon his honor & reputation. Everyone has the right to the protection of the law against such interference or attacks. this declaration signifies the urgency & importance of protecting privacy concerning any matter of an individual, be it financial privacy or anything else. this particular human right declaration is also supported by the ‘international covenant on civil & political rights’ of 1976.bangladesh is a member of the un & therefore a signatory to both of these international conventions. However, no legislations have been passed in order to bring this right into action. India the neighboring country which is also a member a UN is also not an exception.
Considering the prevalence of the right of the financial privacy Act in the USA on following the footprints of it as a role model for each and every countries govt. to follow it is worth discussing the reasons against the law enforcement agencies accesses to bank information. The core objective of the eastern point against law enforcement agencies right is to ensure that is the first place, the investigation of financial records musty be carried out by central bank. It self since it automatically contents all required information regarding any individual with a bank or financial institution s account. However, it does not mean that the law enforcement agencies should not total have asses to financial records. This particular agency may have asses provided it complies with the producers which are of a global standard by global standard it is meant that it is complaint with a law or an act design to protect the fundamental rights of an individual. USA has an act regarding this which requires that prior to any investigation.nay govt. agencies must survey a notice to the particular individual and an opportunity to object before any financial institutions can disclose their private account related information.
The continuous increase of terrorist activities & terrorist financial mean that each Z& every government agenda is unique & similar- to take any type of relevant measure in order to ensure the security of the citizens as a whole. the right of law enforcement agencies regarding access to bank information of the individuals must not be the only tool that the governments might use to stop terrorist funding. as with any law or legal activity; the prime function of law enforcement is to ensure the justification of the actions law enforcement agencies under taken .therefore ,as discussed in the earlier paragraphs, access to bank information by the law enforcement agencies might be important & it is almost impractical who hold accounts with financial institutions when they are provided with the opportunity the USA governments bank secrecy act of1970 which is also known as ‘Currency & Foreign Transactions Reporting Act’. This particular act , like any other act other discussed previously , also states that’s financial institutions must be collaborate with the govt. agencies.
For direction and preventing of money laundering. This act works in consumption with the “ Right to financial privacy” act. This particular requires financial institutions including banks to report suspicious transaction details to the central bank as well as some govt. agencies. The govt. agencies include but not limited to agencies such as a the credit information Bauru and such. Format of the re[ports and purified reports and any individual crossing a certain amount transaction limit is subject to scrutiny. The individuals are protected against measure of the act in a way that it law is made public and anyone can have direct asses to this set of information. This particular act was later suppressed by the USA patriot act. The title the act is a 10 latter acronym which stands as “U” for uniting ”SA” strengthen America : By “p” for providing “A” for providing a appropriate ‘T’ for tools R for required to ‘I’ for intercept and O for and t for terrorism . The act was passed after the September 11 attacks .However, title lll of this act which is titled “international money laundering abetment and financial-anti terrorism act 2001”. Made change to their “bank secrecy act” which is discussed above.
In order to combat terrorism the emergence of this particular act made it easier for law enforcement agencies to gain asses to bank information. In some case, the restrictions placed on banks regarding realize of bank information as stated in “ the right of financial privacy act” where lifted. The bank authorities from the time owners have permission to directly report suspicious financial transaction of certain amount of law enforcement agencies. This clearly shows that the law. Enforcement agencies, in particular case have distinct and direct asses bank information this act,as well has been made public and the individuals are aware of the consequences of the transaction. There for it can be clearly understood even if law enforcement agencies do have limited asses to financial information of the individuals, the govt. has made it public that such investigation might happen. This action is within legal boundary. The prime cause of concern for the citizens of countries like Bangladesh and India is that no law of this type is present and because there is a lack of good governance, law enforcement agencies are misusing their powers. Without any relevant case or permission by law to act upon, they are accession the financial records which are unfair to the individuals.
Chapter 4 –Conclusion
There may be heated agreements in support of the right of the law enforcement agencies having access to the financial records of the individuals frequently but considering the privacy laws persistent globally and the reason for the presence of law being ensuring fare judgment, it is imperative and easy to rise voice against the misuse of law by presenting a viewpoint against the law enforcement agencies right to access bank information of the individuals frequently.
1. www.lawyersnjurists.com/resource/articles-and-assignment (accessed at 23-01-11,10 pm)
2. www.en-wikipedia.com (accessed at 23-01-11,10 pm)
3. www.privacyrights.org/fs/fs17g-CrimIdTheft (accessed at 23-01-11,11 pm)
4. www.hg.org/banking.html (accessed at 23-01-12 pm)
5. www.fincen.gov/reg_faqs.html (accessed at 23-01-12 pm)