The Independent Commission against Corruption (ICAC) is once more in the limelight. The tug of war is this time with the State Bank of Mauritius (SBM) over a question of access to clients’ bank accounts. The bank has refused to comply and taken the matter to court. The government has decided to review the legislation to make it clear when the ICAC has the right to obtain bank information.

The conflict with the bank comes from requests by the ICAC to have access to some accounts of SBM clients. The bank has put forward a secrecy clause in the Banking Act to resist this demand. According to the ICAC, the Prevention of Corruption Act allows it to check accounts of customers suspected of money laundering.

Section 39 of the Banking Act stipulates that the manager of a bank or financial institution does not have the right to reveal directly or indirectly any information on his/her customers’ accounts. Likewise, the ICAC has threatened the bank under Section 50 of the Prevention of Corruption Act. The latter states that no one has the right to refuse to comply with an ICAC order and is punishable with a prison sentence not exceeding five years. As no party wants to give in, the affair is now in Court to be heard by Judge Paul Lam Shang Leen on 20th July.

The Bank of Mauritius’s (BOM) has expressed its conviction about the necessity of bank secrecy. “Confidentiality of all information and bank secrecy have always been basic pillars of the banking industry all around the world”, the BOM governor declared. He believes that, if people no longer trust banking institutions, it will have severe consequences on the financial and economic system.

However, the World Bank consultant on money laundering, Fred Myers, who is working with all parties concerned to reinforce the set-up to fight against money laundering, is adamant: “The ICAC should have access to bank information.” He thinks, “The way information is exchanged between the various institutions has to be formalised.”

As was the case for the Financial Intelligence Unit (FIU), the government may have to amend the law to allow the ICAC to check bank accounts. As far as the FIU is concerned, it can only have access to accounts where a bank has itself reported suspicious transactions.

The prime minister, Paul Bérenger, has already deplored the wrong attitude of the ICAC on such issues. He does not contest the fact that the commission should have access to accounts. He rather insists on the way they should deal with people suspected of fraud – considering that any suspect has the right to be considered innocent until proved guilty. Amending the law would clarify the powers of the ICAC and at the same time reassure bank clients that their right to bank secrecy is being respected.