The characteristics and enlightenment of legislation on financial privacy protection in the USA

Abstract

Purpose

The purpose of this paper is to examine the extent to which financial privacy is present and necessary in dealings between banks and clients in China.

Design/methodology/approach

This paper provides a comparative study drawing, in particular, on developments in the USA.

Findings

It is a trend in legislation in the western developed countries that the right to privacy is taken seriously and private information in the financial activities is protected by law. The legislation in the USA is typically systematic and complete. The fact that financial privacy protection is sparsely stipulated in finance or administrative laws but the protection of privacy has yet not been systematically written into law in China so far, which is inconsistent with the current situations of the financial industry. China should deal with the relationship between banks and clients, administrative power and personal rights, judicial interpretation and legislation from the aspect of financial practice, so as to set up the legal system to protect financial privacy by learning from the legislation in the USA based on the national conditions.

Originality/value

The paper provides a systematic view of the value of financial privacy in the modern world, with recommendations for reform in China.

Citation

Jianping, C. and Zhongwei, Y. (2009), "The characteristics and enlightenment of legislation on financial privacy protection in the USA", International Journal of Law and Management, Vol. 51 No. 4, pp. 226-233. https://doi.org/10.1108/17542430910974059