Bank secrecy in Australia: terrorism legislation as the new exception to the Tournier rule

Questions the cost effectiveness of Australia’s legislation after 9/11 to combat terrorism by forcing banks to disclose terrorism finance to law enforcement agencies, citing evidence from the USA as well as Australia. Contends that this legislation constitutes a breach of the traditional bank/customer confidence, and is anyway ineffective because it simply leads to a flood of data which is apparently impossible to interpret. Outlines the provisions of the Suppression of the Financing of Terrorism Act 2002, and of the 40 Recommendations (2003) of the Financial Action Task Force on Money Laundering, and makes reference to the Tournier Case of 1928, which set out exceptions to the bank’s contractual duty of confidence.