Cross-border finance business and local business in foreign countries of any currency is by international banking. Banking laws in tax haven countries impose no tax liability on account holders of foreign origin. The study aims to understand people’s perceptions on banking secrecy which has become a lacunae, enabling money laundering and bank fraud in developing countries. From the study conducted among 200 people, it is found that people generally disapprove of banking secrecy laws and find it to be a major tool used for money laundering & bank fraud in developing countries. People also feel that a uniform banking regulation would help to curb money laundering and bank fraud. It is concluded that ill-gotten wealth needs to be stopped from getting stashed in tax havens and the lacunae needs to be filled so that there is no hindrance in the development of developing countries.