No banking secrets in criminal cases, lawyer group says as cops chase 1MDB whistle-blowers
(Malay Mail Online) – Banking confidentiality does not apply in criminal investigations, Lawyers for Liberty (LFL) said today following reports that the authorities are now hunting down those who allegedly leaked documents from the ongoing investigation on debt-laden 1Malaysia Development Bhd (1MDB).
Instead, the civil liberties group said the act of whistleblowing to the press signals the loss of public trust in the ability of local authorities to conduct fair probes.
“It is misleading and disingenuous to assert banking confidentiality in such a case as clearly, such privilege does not apply to criminal investigations,” LFL executive director Eric Paulsen said in a statement.
“How else would corruption, criminal breach of trust, money laundering or tax evasion be exposed if not through banking details?”
“Such investigations unfortunately lend further credence that law enforcement authorities remain highly politicised and selective as the disclosure had exposed serious criminal offences which should override any confidentiality provisions,” the lawyer added.
Paulsen said although banking confidentiality should normally be maintained, public interest takes a higher priority when it comes to possible embezzlement or mismanagement of public funds worth millions or billions of ringgit.
“Investigating the whistle-blowers is clearly misconceived, a case of shooting the messenger bearing bad news,” said Paulsen, as LFL urged Putrajaya to pull the plug on investigations against whistle-blowers.
The police said in a statement yesterday that it is sparing no effort in the search for the so-called government sources that leaked confidential documents cited in a recent Wall Street Journal (WSJ) report, describing the leaks as “criminal acts” that raise national security implications.
Inspector-General of Police Tan Sri Khalid Abu Bakar said that the investigation on the source of the leaks would also cover members of the special taskforce probing the WSJ report on US$700 million (RM2.6 billion) being channelled through various companies before allegedly ending up in Najib’s personal bank accounts.
Yesterday, Umno’s Pengerang MP Datuk Seri Azalina Othman urged Bank Negara Malaysia (BNM) to act on document leaks, saying that if the documents about account holders could be leaked, it also meant that BNM’s system could be compromised.
Separately, Kuala Kedah Umno division chief Datuk Abdullah Hasnan told the New Straits Times (NST) that the act of leaking BNM documents went against laws such as the Banking and Financial Institutions Act 1989 and Financial Services Act 2013 and as such, action should be taken accordingly.
Hulu Selangor Umno division chief Mat Nadzari Ahmad Dahlan was also quoted by NST as saying that all information from banking institutions, including that of BNM, should remain confidential or it will jeopardise the client’s confidence which will in turn affect the Malaysia’s good reputation in the financial sector.
