Brussels, 05/10/2006 (Agence Europe) - On Wednesday, the European Central Bank (ECB) denied all responsibility in the SWIFT (Society for Worldwide Interbank Financial Telecommunications) affair. The ECB had been aware, since 2002, that the SWIFT messaging service was forwarding banking data to the American authorities but had neither the competence to judge whether such transfers were legal nor the right to share this information, ECB President Jean-Claude Trichet said on Thursday. “Although the ECB did know of the subpoenas issued to SWIFT by the American authorities in June 2002”, in the name of counter-terrorism, this information could not be passed on to a third party or be made public, Trichet told the European Parliament Committee on Citizens' Freedoms and Rights. Also, the European data protection authorities were not informed that SWIFT had complied with the US authorities' demand that they provide details of bank transfers. “SWIFT alone was therefore responsible” for its decision to forward banking data to the American Treasury, Trichet concluded.
In June 2006, in the United States, it was revealed by the media that the US authorities had issued subpoenas to SWIFT, compelling the Belgium-based company to provide details it held of financial transfers, about which it sends information between banks. With SWIFT's agreement, the United States thus gained access to the heart of the world banking system. The American company, whose European base is in Belgium, provides an ultra-secure messaging service to 7,800 financial institutions located in over 200 countries. SWIFT's Director of Finance, Francis Vanbever, gave his assurance that his company had limited to a maximum the risk of this being detrimental to the protection of privacy, by only forwarding to the US Treasury data that were directly linked to anti-terrorist investigations underway. Jean-Marie Cavada (ALDE, France), Chair of the Committee on Citizens' Freedoms and Rights, said it is urgent to have a framework on data sharing based on Community legislation without harming relations with the United States. Coordinators from the relevant parliamentary committees will be meeting soon to see how the matter should be followed up. On 6 July 2006, the European Parliament adopted a resolution denouncing the use of information by Americans resulting in forms of large-scale economic and industrial espionage (EUROPE 9227). The European Commission, for its part, awaits the opinion of the EU Committee on data protection which will give a final opinion in November. Although the Commission has no authority to take measures against SWIFT, it may, however, decide to prosecute Belgium if it were to discover that it is in breach of the European directive on data protection. (bc)