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Clifford Chance Applied Solutions develops new digital tool for complex banking secrecy regulations

3 November 2020

Clifford Chance Applied Solutions develops new digital tool for complex banking secrecy regulations

Clifford Chance Applied Solutions announces the launch of a digital tool "Cross-Border Publisher: Banking Confidentiality" providing banks with trusted legal know how on banking duties of confidentiality on a multi-jurisdictional basis. The tool covers a growing list of key jurisdictions* for businesses, with more jurisdictions to be added subject to demand.

Failures in managing duties of confidentiality may result in significant fines under administrative or criminal law, as well as remediation costs. The impact of misconduct matters beyond the initial fine amount for a bank. Industry experts have indicated that remediation costs are 12x greater than the amount of the initial fine*. There is currently also more technology dependency than there has ever been, making businesses vulnerable to breaches of confidentiality. This has resulted in a steep increase in the number of financial services cyber incidents, including security and data breaches, that were reported to authorities especially from retail banks.

The product is the first of its kind on the market and does the following:

  •  Protects banks from financial and reputational loss by ensuring banks have a clear overview of applicable regulations and are up to speed with latest developments on a multi-jurisdictional basis;
  • Saves time trying to find the answers to banking confidentiality questions. The Q&A format allows answers to be filtered and jurisdictions compared easily;
  • Saves money on legal advice. Content is from a trusted source at an affordable price.

Jurgen van der Meer, partner in the Financial Markets Group at Clifford Chance, comments: "Banking confidentiality regulations can be complex and intrusive for financial institutions. Regulators and bank customers have become less tolerant of violations of these rules, causing reputational risk and financial loss. Compliance with rules such as banking secrecy is therefore business critical. This applies in particular for internationally operating banks, having to comply with a patchwork of different regulations in multiple jurisdictions. This tool will instantly save banks the costly and time-consuming exercise of remaining compliant."

Jeroen Plink, CEO at Clifford Chance Applied Solutions, comments: "Banks hold customers' most confidential data. The product we have created is a one-stop-shop to ensure that time and money is saved while remaining compliant. Working with Clifford Chance's financial services lawyers we identified the difficulties banks face operating globally ranging from legal duties of care to implied contractual duties. Whether you are a local bank, a local branch of an EU bank or a bank providing cross-border services our platform will eliminate anxiety and instil confidence.

The Clifford Chance partners involved in the product were; Jurgen van der Meer (Amsterdam), Simon Crown (London), Lounia Czupper (Brussels), Dessislava Savova (Paris), Christian Kremer (Luxembourg), Fernando Irurzun (Madrid).

ING Group is currently signed up to the Cross-Border Publisher to help the company remain compliant with their banking duties of confidentiality. Please find the full case study here.