The Register® — Biting the hand that feeds IT

Feeds

Banks put customers in Swift Catch-22

'Please treat my data with disrespect'

Agentless Backup is Not a Myth

Bank customers wanting to make international transactions are being asked to sign a waiver to allow their personal details and financial records to be scanned by US anti-terror investigators.

The waivers put customers in the same Catch-22 European data protection officials found themselves in after it emerged that the US had been snooping on the world's international financial transactions in the hope of picking up some transnational insurgents.

According to reports received by The Register, people wanting to make international money transfers using the Belgian-based international banking co-operative Swift (as most do), have been asked to sign a form giving their approval for details of their transaction to be disclosed "to any Government entity, regulatory authority or to any person we reasonably think necessary for these purposes".

These purposes being "fighting crime and terrorism" and "any applicable laws".

The disclaimer warns: "This may mean that personal information will be transferred outside the EEA to countries, which do not provide the same level of data protection as the UK."

This is illegal under EU law, which says data should not be sent to countries that don't give people the same data protection rights.

Yet if customers don't sign away their privacy rights to foreign governments in the name of the "war on terror", they will find it very difficult to make international payments.

This was the same dilemma faced by the EU data protection authorities when they investigated the Swift situation earlier this year. The US was going to take Swift's records no matter what the EU authorities thought about their comparatively inferior data protection laws. And as there was no alternative to Swift, the only solution was for Swift to pull its US servers back onto European soil.

The US and EU are presently trying to harmonise their data protection laws to make such waivers unnecessary. EU law requires police to have good reason for going into people's private records. But proposals are being passed that might water these protections down. ®

What you need to know about cloud backup

Latest Comments

Catch 22?

Catch 22 situations occur when the two choices are interdependent

In this situation, your choice is:

Let the US spy on your data, or

Struggle to make a payment

It's not a catch 22 situation.

This is an example of what would be a catch 22:

America will want to spy on your data unless you pay them a 'registration fee', but you have to send this money via swift, meaning your choices are:

Don't pay, and give them leave to spy on your transactions or

Pay, using a service where you have to give them leave to spy on your transactions

0
0

You want to transfer money...?

Certainly Sir, just sign here, drop your trousers and bend over, someone from the USA will be along shortly...

0
0

Those wanting to transfer money securely and ironically

might consider Hawala - Islamic Money Transfers

http://en.wikipedia.org/wiki/Hawala

0
0

More from The Register

 breaking news
Number of cops abusing Police National Computer access on the rise
Only a telegram from the Queen can get you off it
 breaking news
NSA whistleblower to tech firms, Obama: 'Grow a pair!'
Ed Snowden: Email tracking grabs 'IPs, raw data, content, headers, attachments, everything'
 breaking news
Ecuador: All right, Julian, you CAN stay on our sofa - it's your human right
Minister and Wikileaker share cosy chat in tiny London flat
SCO vs. IBM battle resumes over ownership of Unix
Zombie lawsuit back and wants to suck the brains out of Linux
Google flings another £1m at online child sex abuse vid CRACKDOWN
See, see, we're trying, ad giant tells Daily Mail UK.gov
 breaking news
NSA PRISM-gate: Relax, GCHQ spooks 'keep us safe', says Cameron
Whatever they are up to, it's all above board, we're told
PRISM snitch claims NSA hacked Chinese targets since 2009
Snowden suddenly looks safer in Hong Kong after revelations
 breaking news
US chief spook: Look, we only want to spy on 6.66 BEELLLION of you
Americans assured they are not in the NSA's sights