The T&T Chamber of Industry and Commerce said Central Bank Governor Jwala Rambarran breached confidentiality when he identified by name, companies and businesses deemed to be T&T’s top users of foreign exchange.
Rambarran made the disclosures, including the amount of foreign exchange purchased by each company, in his address at the Fifth Monetary Policy Forum last Friday.
In a strongly worded statement yesterday, the T&T Chamber said it was unfortunate that the breach occurred in a speech “which otherwise presented valuable information on economic and monetary trends to the public.” The group said it would have been sufficient for Rambarran to have listed only the sectors and industries which are the main users of foreign exchange.
“Not surprisingly, as customers and depositors of commercial banks, companies are severely aggrieved at the betrayal of confidence, given the high expectation of privacy in such matters. The T&T Chamber is also concerned that this is a dangerous precedent that could lead to further disclosure of any confidential information, if this action goes unchecked,” the Chamber said.
“In addition, the T&T Chamber deems it unacceptable that its membership should be unfairly targeted as they engage in legitimate commercial pursuits in order to meet customer demand. By publicly disclosing the large users of foreign exchange, the Governor appears to be holding the Central Bank and himself blameless for high foreign exchange usage. It must be noted that it is the Central Bank, through the Governor, which is responsible for the country's monetary policy which has promoted the environment articulated by the Governor.”
The Chamber said its members have been actively lobbying the authorities to find solutions to the shortage of foreign exchange.
“A viable solution cannot be accomplished through either inadvertent or wilful betrayal of the duties of confidentiality outlined in Section 56 of the Central Bank Act or any other relevant Act which regulates the relationship between the Central Bank and licensed banks,” the group said.
“Notwithstanding the foregoing, the T&T Chamber remains committed to continued collaboration with the Governor. However, as a matter of urgent public interest, we must register our disappointment and deep concern at this flagrant breach of our laws by no less a body than the regulator.”
What Section 56 says
56. (1) Except in so far as may be necessary for the due performance of its objects, and subject to section 8 of the Financial Institutions Act, every director, officer and employee of the Bank shall preserve and aid in preserving secrecy with regard to all matters relating to the affairs of the Bank, any financial institution or person registered under the Insurance Act or of any customers thereof that may come to his knowledge of his duties.
(2) Any such director, officer or employee who communicates any such matter to any person other than the Board or an officer of the Bank authorised in that behalf by the Governor, or suffers or permits any unauthorised person to have access to any books, papers or records relating to the Bank, any financial institution, or person registered under the Insurance Act, is liable on summary conviction to a fine of $6,000 and to imprisonment for two years.
