INTERNATIONAL FUNDS TRANSFERS FROZEN BY SWIFT

SWIFT Says No Transfers until Parliament Votes

The Society for Worldwide Interbank Financial Transactions (SWIFT) says it will not share European banking data with U.S. officials, pending further action by the European Parliament, reports Handelsblatt (in German).

On February 10, Parliament will vote whether to accept the SWIFT agreement reached between U.S. authorities and the EU Council of Ministers late last year, prior to the Lisbon Treaty going into effect. The agreement allows for the sharing of European citizens' transaction data with the U.S. Justice Department for counterterrorism efforts. Under the deal, SWIFT was to have resumed the data sharing as of February 1, but the society now says it will not engage in such transfers until Parliament has had its say.

It is widely expected that Parliament will vote against extending the agreement next week. "This shows that companies in the EU take Parliament seriously," says Henriette Tielemans, a partner in the Brussels office of Covington & Burling LLP. "It also shows that Parliament has every intent to use the powers that it received under the Lisbon Treaty."

U.S. vs. UBS: A Fight Over Secret Swiss Bank Accounts

Privacy showdown.

I love it when the US flexes diplomatic muscle. This, however, is not the proper purpose or venue. The US can't win this. Obama needs to reign in the Treasury. If the accounts were in the US, the IRS likley would not be able to get the data with the same methods.

U.S. vs. UBS: A Fight Over Secret Swiss Bank Accounts


Individuals the world over - including in the US - are siding with Switzerland 9-1. It's not the way to keep improving our standing in the world.

If the US has the names, they can pressure the individuals by other means, as we all know. They are instead looking for UBS to do their work for them. Treasury boys need to do their own homework, stick to legal methods. Yes, even if there are tax evaders in the bunch (which has yet to be determined).