SWIFT seeks deal to ensure data protection

SWIFT, the company at the centre of controversial transfers of personal banking information to the US authorities, has applied to sign up to an agreement to ensure a better level of data protection.

But the chairman of the EU’s data protection supervisors has warned such a move is not enough to ensure EU data protection laws are complied with.

SWIFT, a financial network owned by banks, is in discussions with European data protection supervisors to try to overcome criticism that it is breaking the law by sending the information to the US authorities, following subpoenas served after the 11 September 2001 terror attacks.

By joining the ‘Safe Harbour’ arrangement - agreed between the EU and US to secure privacy for European citizens’ data held by companies operating in the US - a certain level of protection would be guaranteed. SWIFT has also agreed to notify the data protection authorities of Belgium, where the company is based, if any changes are made to how it handles the personal banking information.

Peter Schaar, the chairman of the group of EU data protection supervisors, said that while progress had been made in recent discussions with the company, more needed to be done. The data protection supervisors in an opinion last November said that the SWIFT transfers to the US authorities were illegal. They met to discuss the issue last month and will return to it again next month. "We need an appropriate level of data protection. We cannot accept that money sent by European citizens to European citizens will be monitored by the US authorities," said Schaar.

Francis Vanbever, chief financial officer of SWIFT, said that the company was working towards better compliance with data protection laws but that an EU-US deal on the transfers was needed.

The European Commission confirmed that talks on such a deal have already begun.

SWIFT, the company at the centre of controversial transfers of personal banking information to the US authorities, has applied to sign up to an agreement to ensure a better level of data protection.