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Securing a SWIFT deal

Securing a SWIFT deal

Why the Socialists & Democrats group in the European Parliament now supports the sharing of Europeans’ bank-transfer data with the US.

Updated

Despite strong international pressure, a majority of MEPs in February rejected a EU-US agreement on the transfer of bank data to Washington as part of counter-terrorism co-operation. 

The Socialists and Democrats (S&D) had a number of serious misgivings. The transfer of bulk data to the US Treasury did not seem proportionate and there was inadequate appropriate and binding EU oversight. The purpose of the agreement was too wide, as the generic reference to the fight against terrorism could potentially have encompassed everything. Moreover, citizens had no right to be informed, to have access to their data, to ask for rectification. Nor had they a right to judicial and administrative redress. In addition, all extracted data could have been retained for up to 90 years.

Quite unbelievably, this was the sort of agreement negotiated last year by the European Commission and accepted by the majority of European governments.

Two weeks ago the Commission signed a new draft agreement that, despite some improvements, was still not satisfactory.

Last week, facing the risk of a second blow-up with the Parliament, the US and the European Council finally came to terms with our concerns. They accepted re-opening negotiations for a third time to sign a new and extensively improved deal.

This deal reduces the volume of data transferred and excludes all data concerning the European System of Payments, SEPA. Data could only be used for known suspects or on the basis of specific evidence. Rules governing access to and rectification, deletion and blocking of data have now explicitly been added to the agreement. Data-mining, profiling and random searches will be explicitly prohibited. EU officials will be permanently based in Washington and will have direct control on the extraction of data, with the power to block the procedure in case of infringements.

In addition, within the next 12 months the Commission will have to come forward with a legislative proposal to set up a system to extract data directly on EU soil and to avoid bulk transfers. The role of EU national data-protection authorities has also been reinforced.

EU citizens will now also be entitled to legal redress and will have the same rights given to US citizens.

All extracted data will be deleted at the end of the specific investigation or judicial procedure, no matter what the outcome. Bulk data will be deleted every year, under the EU’s supervision.

These are the main changes that the Parliament has succeeded in obtaining. These are also the reasons why the Socialists & Democrats will now give the green light to these anti-terrorism measures.

We have not changed our mind; the deal has changed. When it enters into force, we will make sure it does not change back and that the Commission ensures that the safeguards will be implemented as agreed.

Moreover, the US has committed itself to re-assess this agreement as soon as the EU-US framework agreement on common data-protection principles, currently being negotiated, is concluded.

Some will still object to this agreement. They must, though, be aware that the Parliament cannot prevent the US and EU governments signing 27 bilateral agreements. An EU-wide deal is better and stronger than bilateral deals would be.

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From:

Martin Schulz MEP

Leader, Socialists and Democrats group

European Parliament

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