Commission to examine SWIFT transfers

The European Commission has started examining whether the Belgian government broke EU data protection rules by allowing an international banking transactions body to transfer EU citizens’ personal banking information to the US authorities.

Belgian Justice Minister Laurette Onkelinx finally submitted information relating to transfers by Belgian-based company SWIFT to the Commission at the end of last week in response to a request from Franco Frattini, the commissioner for justice, freedom and security.

The Commission could take Belgium to the European Court of Justice if its law on data protection was out of step with EU law or if the government had failed to implement rules to ensure individuals’ information was safeguarded, a spokesman said. "We have asked the authorities if there are any deficiencies in their national law transposing the EU directive [on data protection]," he said.

But the Commission has said it will wait for an opinion next month from the EU’s 25 data protection supervisors on the legality of the transfers.

Frattini originally requested the information in July and he wrote to Onkelinx two weeks ago, urging her to submit the information.

The EU’s 25 data protection supervisors are to rule on the legality of the financial information transfers. The supervisors last month said they were studying the case and that they had "immediate concerns about the lack of transparency which has surrounded these arrangements".

A report by the Belgian data protection commission in September criticised SWIFT for sending the information to the US authorities which it said broke the law.

Belgium’s Prime Minister, Guy Verhofstadt, has called on the EU to negotiate a deal with the US which would allow personal financial information to be transferred but with data protection guarantees on how it is transferred, which bodies can access it and for how long it is stored. At present no such guarantees exist but a deal recently struck between the EU and US on the transfer of airline passenger data could be a blueprint for such a deal.

The case involves SWIFT complying with US subpoenas filed following the 11 September 2001 attacks to supply them with the confidential information for counter-terrorism purposes. SWIFT has defended its action saying it faced criminal sanctions if it had not complied.

Both the European Central Bank and the Belgian Central Bank said they were informed of the transfers - which are still continuing - but that it was not within their remit to take any action such as informing the Commission.

The European Commission has started examining whether the Belgian government broke EU data protection rules by allowing an international banking transactions body to transfer EU citizens’ personal banking information to the US authorities.