European home affairs ministers are today set to approve a
transatlantic deal that will see them turn reams of private banking
data over to US intelligence.
[theregister.co.uk] The expected approval signals a remarkable diplomatic victory for
Washington. The European Commission and the US had previously clashed
over the Terrorist Finance Tracking Programme (TFTP).
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TFTP began in secret following the 9/11 terror attacks. It allows US
authorities to monitor SWIFT, the Belgian company that acts as clearing
house for millions of daily transactions between European banks.
When the arrangement was exposed in 2006, it caused consternation among European privacy officials.
US counter-terrorism authorities had been able to access the data
because because a copy is stored under their jurisdiction, at SWIFT’s
conveniently-located Virginia datacentre. Now, however, the firm plans
to move all data on American soil to Switzerland, prompting strong
pressure from Washington for the EU to ensure continued access.
SWIFT’s withdrawal of data from the US was planned in response to
the barrage of criticism it faced when TFTP was revealed. The EU’s
expected new deal renders the move pointless.
In a tacit admission that European intelligence agencies are
incapable of keeping an eye out for suspicious transactions, today the
European Council of Ministers planned to comply with US demands.
"The truth is that we in Europe don’t have the technical ability to interpret this stuff," an EU official told the Finanical Times earlier this month.
"We rely on the Americans to process it and pass it on as intelligence."
There is no reciprocal agreement for European intelligence agencies to mine US banking data.
Justice minister Lord Bach, attending the meeting for the UK, said:
"This agreement is needed because of a restructuring of SWIFT. The UK
supports the Council decision subject to the views of the Parliamentary
scrutiny committees."
Westminster committees scrutinise Council decisions, but cannot
block them. There will be no scrutiny of the decision by the European
Parliament; perhaps coincidentally, the Lisbon Treaty comes into force
tomorrow. It would have granted MEPs the power to examine TFTP, which
has not been published prior to agreement.
Germany planned to abstain from today’s vote over privacy concerns.
The draft deal reportedly lowered the criteria for data to be handed
over and allowed US authorities to export European banking data to
third parties.
