You are currently browsing EDRi's old website. Our new website is available at

If you wish to help EDRI promote digital rights, please consider making a private donation.

Flattr this


EDRi booklets

EU wants to share more bank details with the US authorities

29 July, 2009

This article is also available in:
Deutsch: EU will noch mehr Bankdaten an die US-Behörden weitergeben

The dispute between EU and the US on access to the bank transfer details has come again to the public attention after the Belgium company SWIFT (Society for Worldwide Interbank Financial Telecommunication) that intermediates the international banking transactions has decided to open a new server in Switzerland that will focus on European customers.

SWIFT has now two servers in the Netherlands and in the state of Virginia, with identical data. After 11 September 2001, US intelligence services had gained access to the system, including to European inner-transactions. This became public in 2006 and led to a data protection outcry. In 2007, a first agreement was reached between the US and the EU to establish what set of SWIFT data can be accessed by US authorities and under what circumstances.

The European Commission also appointed the French judge Jean-Louis Bruguière to examine if the US really use the data only for the anti-terrorism fight. The report, that has never been made public, was presented to the European Parliament on 17 February 2009 and concluded that the data was deleted when no longer necessary and that the US authorities fully respect the agreement with the EU. But Bruguière, the Vice-President of the Tribunal de Grande Instance in Paris, has in the past 25 years gained a reputation as France's "leading terrorist hunter", so the outcome of the report was predictable.

SWIFT will open a new server in Switzerland for inner-European transactions in September, which would exclude US authorities from accessing these. While this would have eased a lot of the criticism from data protection commissioners and the European Parliament, the European Commission is now drafting a new agreement with the US authorities before the new server starts operations.

This met heavy cricism from MEPs, as the European Parliament would again be sidelined by this. MEPs as well as national-level politicians also criticized the plan on substantial grounds, citing fundamental privacy concerns. The chairman of the Austrian social democrats in the EP said: "the EU is not a colony of the US". Some MEPs have already questioned the re-election of Commission president Manuel Barroso. Because of the upcoming federal elections and the rising worries about surveillance among the German population, vocal criticism came especially from German politicians, including many Greens, the chairman of the Liberal Party, the conservative Bavarian head of government Horst Seehofer, and others.

EU justice commissioner Jacques Barrot denied these accusations in a meeting on 23 July with the members of the newly formed European Parliamentary Committee on civil liberties, justice and home affairs. He also concluded that he wants in fact a better deal: "We must negotiate an agreement based on reciprocity rather than allowing the US to continue as they have up until now as if they were top dog." According to a Commission spokesperson, the deal will not include EU access to US banking transactions, though.

Jaques Barrot confirmed that the Commission wants to re-negotiate this agreement after one year. By then, the Lisbon Treaty, which would give European Parliament a much more important role in this field, is expected to be in force. But an interim agreement was needed to be rapidly concluded in order not to stop the anti-terrorism fight.

The Council of Foreign Ministers gave a green light on 27 July to the project, by unanimously agreeing to allow the Swedish Presidency to negotiate a temporary agreement with the US regarding access to data held by SWIFT. According to news reports, the mandate includes that the data would be given to US authorities on a per-request basis and could be stored in the US for five years.

Apparently, the EU bodies want to built their own system of banking surveillance, that might include the SEPA (Single Euro Payment Area) transaction system. This may be done in connection with the proposed "Stockholm Programme", the EU's justice and home affairs work plan for 2010 to 2014. The draft already stipulates:

"The instruments for combating the financing of terrorism must be adapted to the new potential vulnerabilities of the financial system and to the new payment methods used by terrorists. We must have a mechanism that allows both adequate monitoring of financial flows and effective and transparent identification of people and groups likely to finance terrorism. "

Brussels wants to nullify protection of banking data (only in German, 20.07.2009)

EU looking for better deal on data transfer (23.07.2009)

EU still wants to give financial data to US intelligence services (only in German, 28.07.2009)

EU-US data sharing causes uproar in Germany (28.07.2009)

EU supports more anti-terror data sharing with US (28.07.2009)

EU Review of the United States' "Terrorist Finance Tracking Programme" confirms privacy safeguards (17.02.2009)

Communication from the Commission to the European Parliament and the Council: An area of freedom, security and justice serving the citizen (known as the "Stockholm Programme", 10.6.2009)

EDRi-gram: Terrorist Finance Tracking Program raises privacy questions (5.06.2006)



Syndicate contentCreative Commons License

With financial support from the EU's Fundamental Rights and Citizenship Programme.
eu logo