PSC calls for data protection laws

GRA’s unbridled access

The Private Sector Commission (PSC) said it was concerned by Government’s pending ability to access persons’ banking information in the absence of relevant laws to ensure protection of individuals’ private data.

As such, the Commission is calling for data protection laws and regulations for the disclosure of customer information to be established.

The Financial Institutions (Amendment) Bill is currently before Parliament.

The amendments will bestow upon the Guyana Revenue Authority the power to access persons’ banking information for various purposes and investigations.

Although the PSC understands the merit of these amendments, the body highlighted major concerns in respect to the protection of citizens’ confidential data.

In a letter addressed to Attorney General Basil Williams, the PSC said it was critical to have data protection laws in place to accompany this development.

“…We are cognisant that the granting of legislative authority for access to citizens’ bank account data is not peculiar to Guyana and many countries around the world, particularly the more developed ones, have similar provisions in their legislation. However, jurisdictions where such legislation exists usually have corresponding provisions dealing with criteria for access and protection of the data once accessed or released.”

The Commission pointed out there are several frameworks in developed countries which Guyana can adapt. In the United Kingdom, there is a Data Protection Act. In the United States, the protection is built in to the same Act which provides for access, along with regulations governing the criteria for the federal revenue authority’s access to and usage of the data.

The PSC recommended as a short-term measure, Guyana adopted the framework being used in the US.

Therefore, in the absence of a Data Protection Act in Guyana, the PSC said it preferred to see an amendment which catered to these concerns, and corresponding regulations guiding the Guyana Revenue Authority (GRA) on criteria governing requests for access, notice to be served on citizens regarding intended request for access along with an indication of the law for which enforcement is being sought via such access, care and control which such data is in the custody of the Authority, recourse available to citizens if said data is unlawfully released or published by the Authority, among others.

Other entities and persons have also raised major concerns over the GRA’s pending authority to access persons’ banking information, particularly the impact it would have on the business community.

Opposition Leader Bharrat Jagdeo had said the businessmen were worried the Authority would be used politically to go after their information in the banks, which he said could trigger businessmen to pull their monies out of the banking system.

He had noted also that this development seemed to be fuelling fear among Guyanese since the confidentiality of their personal information would be breached.

Jagdeo conceded that there was nothing wrong with the GRA having the ability to investigate and check bank accounts. However, he said it was the vindictiveness behind the move that was causing uneasiness.

“It is driving a lot of fear among people who have bank accounts that the GRA will start to poke into their personal matters. I am very fearful that a lot of those people will start taking their money out of the banking system and converting it to US dollars or we will have massive capital flight because they think that the Government is becoming very intrusive in their business,” the former President outlined.

The Opposition Leader noted that by giving GRA access to banking information, the Government was sending a signal to the business community that while there was freedom, it was encroaching on this all the time.

“This is why I keep saying there is a crisis of confidence too and that is why we have such a precipitous drop in economic activities,” he remarked.

Jagdeo, however, underscored that he strongly supported any attempts to investigate money laundering or illegal proceeds, because he did not want such activities to be practised in Guyana.

It is the hope of the Government that this legislation would aid tax enforcement mechanisms and reduce the incidence of tax avoidance. (devinas@guyanatimes)