As reported here the Court of Justice of the EU made a decision that highlighted a fight against the erosion of privacy, Filippo Noseda, partner,  at Monaco’s Fairmont Hotel. (TrustConsult provides wealth planning, works in areas such as trusts, private trust partners, and property. It operates in Luxembourg, Monaco, Geneva, Belgium and Hong Kong. See here for the preview article.)

It is worth remembering, Noseda said, that the EU’s enshrining of privacy as a right several decades ago responded to totalitarianism on the continent a few decades before.

Noseda, who has led a number of legal challenges on issues such as beneficial ownership disclosures, was among a number of experts from the legal, wealth, media and trusts sectors who looked at different aspects of privacy. They discussed how financial privacy is under assault, why these attacks have happened, the balance to be struck with transparency, and the impact of technologies such as cryptography, digital currencies, AI and blockchain. (WealthBriefing also interviewed Noseda last year about privacy.)

Among the points that emerged is that a younger generation does not appear to be concerned about privacy, but in time they are likely to be. And recent history, as seen by the demands for medical data amid the pandemic, the Ed Snowden claims about domestic US spying, pushback against press intrusion, and other moves, suggested that there is all to play for in the world of privacy.

The panels
In the first panel, entitled “Why Privacy Still Matters,”, several speakers noted the dichotomy between governments demanding transparency among private individuals and companies, but not meeting those demands themselves. Christian Bühlmann, CEO of , said that many in financial services and elsewhere were reluctant to make the case for privacy. “It is first and foremost a human right,” he said. If the letter of the law is honoured, the fact that some might dislike such privacy is irrelevant, Grisel said. 

Myret Zaki, journalist at Switzerland’s Bilan publication, noted the various asset freezes, “leaks” (such as the Panama Papers case) and others where specific jurisdictions were in the firing line. Just as notable, she said, is how there are certain countries that appear to be free from such data leaks and this suggests there is a power dynamic in play. “You don’t have London Leaks, Hong Kong Leaks or Delaware Leaks,” she said. 

Claire Ankri-Avyi, lawyer, , told the audience that the jurisdiction is currently putting the yachts sector under a sharp spotlight, treating it is an industry that needs to be scrutinised. “It is becoming untenable for certain types of companies that need to be able to complete certain transactions on time,” he said. (It was later noted during this panel that the Council of Europe’s MONEYVAL group is scrutinising Monaco’s AML controls, suggesting that local banks and other financial institutions are erring on the side of caution when taking on clients.)

Maurizio Cohen, managing partner, , argued that privacy only benefits users if it gives them autonomy, and therefore that crypto-related solutions etc should not be overly complicated. “If you can ensure ownership, then you can, for example, insure those assets,” he said.

Ramy Torbey, EPTALEX Law Firm (managing partner in Beirut and senior partner in the UAE), said that in the United Arab Emirates, privacy is a “sacred principle.” 

“It is trying to commit to transparency and it has got off the , talked about the importance of secure communications. “If your system is hacked, messages are intercepted or shared with the state…you don’t have privacy anymore.”

Governments have been cracking down on the use of certain messaging apps by bankers and others, such as the use of WhatsApp, he said.

Will Adams added that family offices can, for example, have their own private “blockchains” that can be kept completely secure.

In summing up the conference, Bühlmann said the discussions showed that the tensions between privacy and transparency were not always easy to solve. Nevertheless, it was vital for the wealth industry, regulators and policymakers to keep seeking a resolution. 

“Thanks to the presence of first class subject matter experts, the event was the opportunity to raise awareness of the audience on the fact that privacy is no longer a given. Privacy must be defended from media, government and anyone that has an interest to break into your personal life – this would inevitably lead to your freedom being at risk, when not representing an immediate and very often harmful threat to yourself,” he added.

(Tom Burroughes writes: I was delighted to be invited to speak at this event and explain a journalist's perspective on privacy, transparency and the balancing act that this gives rise to. The whole private banking/wealth management value proposition must retain the principle of "protecting the client." This is a complex issue; new technologies, social pressures and attitudes mean that the privacy conversation is never static. The editorial team intends to keep the debate bubbling. I also value readers' opinions and suggestions, so please email me at tom.burroughes@wealthbriefing.com)