Financial Crime World

Bank Employees Must Declare Fidelity and Secrecy Before Taking Office

In an effort to promote transparency and accountability, all employees of banks and financial institutions must make a declaration of fidelity and secrecy before taking office.

According to Section 12 of the Banking Companies (Nationalization) Act, 1974, every officer, auditor, adviser, officer or other employee of a bank shall, before entering upon their office, make a declaration of fidelity and secrecy in such form as may be prescribed. This requirement is designed to ensure that all employees maintain confidentiality and loyalty to their institutions.

  • Employees are required to make a declaration of fidelity and secrecy before taking office.
  • The declaration must be made in the form prescribed by the bank or financial institution.

Existing Declarations Deemed Sufficient

In a related provision, Section 13 clarifies that if an employee has already filed a declaration with the bank, it will be deemed to have satisfied the requirements of this section. This means that employees who have already made a declaration do not need to make another one.

  • Existing declarations are deemed sufficient, and employees do not need to make another declaration.
  • This provision aims to simplify the process and reduce administrative burdens on banks and financial institutions.

No Compensation for Loss or Damage

Meanwhile, Section 14 provides that no person, including chairmen, directors, chief executives, shareholders, constituents or employees of a bank, shall have any right to compensation for loss or damage incurred as a result of the operation of the Banking Companies (Nationalization) Act, 1974. This provision aims to promote accountability and transparency in the banking sector.

  • No person can claim compensation for loss or damage caused by the operation of the Banking Companies (Nationalization) Act, 1974.
  • This provision aims to promote accountability and transparency in the banking sector.

Continuity of Assets and Liabilities

In another significant development, Section 16 removes doubts by clarifying that all assets, rights, powers and privileges of a bank, including its movable and immovable property, cash balances, reserve funds, investments and other rights and interests, shall continue to vest in the bank. Similarly, all borrowings, liabilities and obligations of the bank shall also continue to subsist unless otherwise provided for.

  • All assets, rights, powers and privileges of a bank shall continue to vest in the bank.
  • All borrowings, liabilities and obligations of the bank shall also continue to subsist unless otherwise provided for.

Conclusion

These provisions are aimed at ensuring stability and continuity in the banking sector, and are seen as a crucial step towards promoting transparency and accountability in financial institutions. By requiring employees to declare fidelity and secrecy, and by clarifying the continuity of assets and liabilities, these provisions aim to promote a culture of transparency and accountability in the banking sector.

  • The Banking Companies (Nationalization) Act, 1974 aims to promote stability and continuity in the banking sector.
  • The act promotes transparency and accountability by requiring employees to declare fidelity and secrecy, and by clarifying the continuity of assets and liabilities.