Banking Secrecy and Law Enforcement: Challenges in Investigating Online Fraud Involving Customer Data

Abstract

This study aims to analyze the challenges faced by law enforcement authorities in investigating online fraud involving customer data protected under banking secrecy principles and to examine the balance between law enforcement interests and the protection of customer information. This research employs normative legal research using statutory, conceptual, and case approaches. Legal materials are analyzed qualitatively to examine the legal framework governing banking secrecy, personal data protection, investigative authority, and the procedures for obtaining customer information during criminal investigations. The results indicate that banking secrecy may constitute a significant obstacle in investigating online fraud, particularly when investigators require account information, customer identities, transaction records, and other financial data to trace and establish the flow of criminal proceeds. At the same time, disclosure of customer information cannot be conducted arbitrarily because it must comply with applicable legal requirements and procedures. The study concludes that harmonization between investigative interests and banking secrecy is necessary through a clear, limited, proportional, and accountable mechanism for accessing customer data. The implication of this research is the need to strengthen the regulatory framework and institutional coordination among law enforcement authorities, banking institutions, and relevant agencies to facilitate effective online fraud investigations while maintaining the legal protection of customer data and banking confidentiality.