Estonian court blocks state access to bank accounts in privacy win
Estonian authorities have faced a legal setback after the Administrative Court ruled against the Money Laundering Data Bureau (RAB). The decision supports LHV Bank's refusal to hand over full customer account statements without clear legal justification. The case highlights tensions between financial oversight and privacy protections in the country.
The dispute began when RAB demanded access to bank account details for preventive checks. While most Estonian banks complied, LHV Bank challenged the request in court, arguing it lacked proper legal grounds. The Administrative Court ultimately sided with the bank, identifying a clash between the RAB's profile law and the Law on Credit Institutions.
Officials cannot automatically access citizens' accounts for general monitoring, the court ruled. As a result, the state must now cover LHV Bank's legal expenses, amounting to 25,000 euros. Madis Meaker, head of RAB, has announced plans to appeal the decision.
Meanwhile, the Ministry of Finance is drafting changes to the law. These amendments aim to grant RAB official access to Estonians' bank accounts, potentially overriding the court's concerns about privacy.
The ruling reinforces privacy safeguards for bank customers but sets up a further legal battle. If the proposed law passes, RAB could gain broader powers to inspect accounts without individual suspicion. The outcome will determine how financial oversight and personal data protection balance in Estonia.
