CLIENT CONFIDENTIALITY, DATA PRIVACY AND SUSPICIOUS TRANSACTIONS REPORTING: THE ACCOUNTANT’S ETHICAL DILEMMA IN THE NIGERIAN PROFESSIONAL SPACE

Abstract

The need for foreclosing illicit funds flow has become a prime policy trust for nations and the global community. This has resulted in the enactment of legal measures and institutional frameworks for combating money laundering. In the twist of that, the accountant finds himself often caught between implementing anti-money laundering laws and client confidentiality as an ethical expectation. Hence, this study interrogated the issue of the ethical dilemma of the accountant, given the requirements of client confidentiality and data privacy, juxtaposed against the anti-money laundering requirement of suspicious transactions reporting (STR). From a theoretical literature prism, the study observed that the accountant faces a major ethical hurdle in complying with STR requirements, against the background of losing face before clients. This is because data privacy and client confidentiality are cardinal pillars of professional ethics. Following, the study concludes that both responsibilities can never be performed optimally because they are conflicting demands. The mutually exclusive nature of the accountabilities creates an ethical dilemma for the accountant. It is therefore imperative that both regulatory authorities and the accounting professional bodies synergize towards evolving alternative ways of delivering on both expectations, without destroying client trust and as well foreclosing financial crimes for overall societal wellbeing.