SECRECY

Concept of Secrecy 

The term, secrecy, refers to the practice of keeping information and things secret by hiding and concealing them. The term is useful in daily life of people and maintaining privacy in human lives. Secrecy encloses different norms about control of confidential information and data providing limited access, prohibiting alteration, and destroying after utilization. It is considered as a fundamental as well as a general social process that is known to society and community. Persons in certain cases conceal their confidential information and experience in them and secrets are protected in their inner self. Competency of inner self grows with increase of age and experience and secrecy can be well maintained in adult and young-adult ages. Children lack competency in their inner self and show a low rate of secrecy in their childhood period. 

Secrecy act 

The Secrecy act of bank in 1970 in United States was an important regulation based on anti-money laundering activity of financial institutions and banks. The act was employed for reporting and record-keeping of banks, individuals, and other financial organizations. “Office of the Comptroller of the Currency” prescribes certain regulations, and conducts supervisory acts as well as takes enforcement activities for ensuring safety of national banks. It also provides requisite notice for law enforcement to detect and determine money laundering criminal activities and terrorist financing. 

“Bank Secrecy Act” was an essential initiative of US government to minimize terrorist financing, money laundering, and other misuses of financial institutions in the country. The act helps US banks to combat terrorist financing by reporting and identifying suspicious activity. Under the Secrecy act US banks must establish BSA programs, and effective customer systems as well as monitoring programs. Additionally, banks also need to screen against “Office of Foreign Assets Control” and different government lists. US banks are also advised to implement effective monitoring systems for suspicious activity and reporting procedures. 

Financial secrecy

The term, financial secrecy, happens when there is a refusal for sharing financial data and information with different legitimate authorities including police services and tax authorities. Financial secrecy is considered fully legitimate for banks to keep customers’ confidential details secret. Countries across the globe are now practicing cross-border financial secrecy that is of three types such as corporate secrecy, bank secrecy, and non-cooperation. Bank secrecy states maintaining customers’ confidential data secrecy and use of legal actions for breaking secrecy. Corporate secrecy refers to a condition where jurisdictions permit creation of legal arrangements and entities but accounts, purpose and permit ownership must be kept secret. Non-cooperation relies on putting up barriers on jurisdictions to information exchange and cooperation. Financial secrecy can be measured through an index known as “Financial Secrecy Index”. It is a comprehensive effort globally for identifying all different mechanisms of different financial secrecy. The index is capable of weighing the mechanisms of financial secrecy in their importance.   

Secrecy in sociology

In sociology, secrecy refers to rules governing information control, such as limiting access to it, destroying it, and forbidding or controlling its development. Secrecy is a universal and basic social mechanism that exists in all communities. It can describe interactions at any level, from personal information withheld to secret rites of passage in pre industrial cultures, secrets of modern fraternal or business organisations, and state-held national security information. Secrecy norms are embedded in role interactions and include reciprocal and unilateral obligations and rights to conceal information. The legally supported form of censorship addressed here involves concealment in prohibiting or restricting communication.

Secrecy in government and corporations

Governments frequently try to keep information hidden from other governments and the general public. Weapon designs, military plans, diplomatic negotiating methods, and knowledge taken illegally from other intelligence agencies are all examples of state secrets. Most countries have some type of Official Secrets Act that classifies information based on the amount of protection required, which is referred to as “classified information.” For access, an individual must have a security clearance, and other safeguards, such as putting documents in a safe, must be followed.

Secrets are kept by organisations ranging from multi-national for-profit corporations to nonprofit charities for a variety of reasons, including competitive advantage, legal compliance, and, in some circumstances, to conceal malicious activities. Trade secret laws safeguard knowledge such as new products in development, innovative production procedures, or simply customer lists. The variables that support secret organisations have been studied in corporate secrecy research.

Conclusion

The above discussion has focused on the analysis of secrecy. The use of secrecy in sociological conditions and governance systems are evident. Additionally, the corporate operations are also part of secrecy management to ensure information security. On the other hand, the application of the bank secrecy act can be used to ensure information control and monitoring that can prevent money laundering.