Law Office of
Robert J. Mintz
Exclusive Legal Representation For Your
Asset Protection Planning Needs
  • Asset Protection
  • Estate Planning
  • International Tax
  • Business Planning

When Is Privacy Legitimate?

by rjmintz on April 17, 2013

As part of the Treasury Department’s battle against money laundering, stricter disclosure requirements are at hand for beneficiaries of bank and financial accounts. Regulators have pulled back from the most onerous proposals, which would compel banks themselves to verify who operates and benefits from the accounts. But even the scaled-back rules — requiring self-disclosure by customers — raise questions about the legitimate use of privacy for business or personal reasons.

While the specifics of the final policy, which could be enacted as early as this year, are still under discussion, regulators are insistent that banks reveal the names of the beneficial owners of any company account. One iteration of the rule would require anyone with at least a 10% stake in the company and managers who oversee regular operations of the company to be identified.

The need for information in the fight against terrorism and criminal activity is understandable, but these rules open a wider debate about the legitimate use of privacy in business transactions. Isn’t privacy a legitimate business or personal financial strategy? Given the prevalence of frivolous litigation and “Deep Pocket” targeted lawsuits and dubious marketing practices to customers by financial institutions themselves, what level of disclosure should be required from individuals and companies seeking to protect themselves from overreaching by the government, potential legal adversaries and aggressive marketing tactics?

Treasury Eases Off On Bank Rules 

Leave a Comment

Previous post:

Next post:

Complimentary New Book

New & Revised Edition
Asset Protection for Physicians and High-Risk Business Owners by Robert J. Mintz JD, LLM

Essential reading for every professional, business owner and potential deep-pocket lawsuit defendant.

Legal Services Request

Free Consultation:

Or call 760-758-4748 to schedule a phone consultation