Mr Nick Hawkins (Surrey Heath, Conservative)

I beg to move amendment No. 93, in

clause 35, page 21, line 9, leave out subsection (6).

The purpose of the amendment is to delete subsection (6), which states:

''An account monitoring order has effect in spite of any restriction on the disclosure of information (however imposed).''

This goes back to the point that we were discussing earlier, when I said to the hon. Member for Somerton and Frome and the Minister, when she was suggesting that there was some kind or protection in the Data Protection Act 1998, that I do not think that it does that.

In relation to this part of the Bill, this is the occasion when we say that if subsection (6) were to stand, it would be too wide. There ought to be protections of the customer's privacy. I hope that the Minister understands that we wish to probe this matter. Members on the Opposition Benches would be interested to hear what she has to say about protection of customer privacy. The significance of that is that in this country the privacy of banking customers has always been sacrosanct. There are understandable reasons why, in trying to tackle international financial crime, the Government have to infringe on that traditional privacy to some extent, but we do not want them to be able to do so too widely, and this subsection goes too wide. I hope that the Minister understands that a balance must be struck. We want to strike it differently.

Ms Caroline Flint (Parliamentary Under-Secretary (reducing organised and international crime, anti drugs co-ordination and international and European issues), Home Office; Don Valley, Labour)

On the account monitoring order, various procedures would have been necessary to reach the point where such an order would be sought. We have discussed serious criminal investigations.

As the hon. Member for Surrey Heath said, clause 35(6) states that an account monitoring order

''has effect in spite of any restriction on the disclosure of information (however imposed).''

That provision is replicated in clause 40 for account monitoring orders in Scotland, and in clauses 32 and 37 for customer information orders. It directly replicates sections 368, 374, 402 and 407 of the Proceeds of Crime Act 2002, which makes identical provision in relation to customer information orders and account monitoring orders made under it.

The purpose of this provision is to require a financial institution to provide the information specified in the order: requirements for information made under the powers of investigation take precedence in spite of any restriction on the disclosure of information. Banks are therefore able and required to breach customer confidentiality and provide the requested information to the court in response to a lawfully made order.

The provision is necessary because otherwise financial institutions could use customer confidentiality as a reason not to accede to customer information or account monitoring orders. That would make such measures weak investigative tools and frustrate the purposes of the protocol.

Customer information orders are compatible with the European convention on human rights. Section 6(1) of the Human Rights Act 1998 imposes an obligation on courts to comply with the convention rights. In exercising its discretion in making an order, a court has to consider its obligations under the 1998 Act and be satisfied that an order is lawful in each case. The 1998 Act applies to all legislation, and ECHR rights do not need repetition in Bills to take effect. The obligation on a bank to disclose

information as a result of a lawfully made court order will not contravene the ECHR. Unless the provision goes ahead, the reason for having the protocol and the powers in the Bill in the first place will be frustrated.

Mr Nick Hawkins (Surrey Heath, Conservative)

I hear what the Minister says and I shall not pursue the matter further this morning. It has been helpful to have her remarks on the record. At this stage, I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

Clause 35 ordered to stand part of the Bill.