Identifier
Created
Classification
Origin
07THEHAGUE171
2007-01-30 14:50:00
CONFIDENTIAL
Embassy The Hague
Cable title:
TFTP/SWIFT: DUTCH MOF MEETS WITH NATIONAL DATA
how-toVZCZCXRO2531 PP RUEHAG RUEHROV DE RUEHTC #0171/01 0301450 ZNY CCCCC ZZH P 301450Z JAN 07 FM AMEMBASSY THE HAGUE TO RUEHC/SECSTATE WASHDC PRIORITY 8024 INFO RUCNMEM/EU MEMBER STATES COLLECTIVE PRIORITY RUEHTC/AMCONSUL AMSTERDAM PRIORITY 2175 RUEHFT/AMCONSUL FRANKFURT PRIORITY 3629 RUEHBS/USEU BRUSSELS PRIORITY 0432 RUEATRS/DEPT OF TREASURY WASH DC PRIORITY
C O N F I D E N T I A L SECTION 01 OF 02 THE HAGUE 000171
SIPDIS
SIPDIS
STATE FOR EB/ESC/TFS, S/CT, IO/PSC
STATE ALSO FOR EUR/UBI, EUR/PGI, EUR/ERA (PWALKER)
TREASURY FOR TFFC AND OFAC
TREASURY ALSO FOR MJACOBSON, JFREIS
USEU FOR JUNDERWOOD
E.O. 12958: DECL: 01/30/2017
TAGS: KTFN EFIN PTER ECON NL
SUBJECT: TFTP/SWIFT: DUTCH MOF MEETS WITH NATIONAL DATA
PRIVACY AUTHORITY
REF: A. THE HAGUE 00163
B. THE HAGUE 02645
C. THE HAGUE 02572
Classified By: Economic Counselor Karen Enstrom,
reasons 1.4(b) and (d)
C O N F I D E N T I A L SECTION 01 OF 02 THE HAGUE 000171
SIPDIS
SIPDIS
STATE FOR EB/ESC/TFS, S/CT, IO/PSC
STATE ALSO FOR EUR/UBI, EUR/PGI, EUR/ERA (PWALKER)
TREASURY FOR TFFC AND OFAC
TREASURY ALSO FOR MJACOBSON, JFREIS
USEU FOR JUNDERWOOD
E.O. 12958: DECL: 01/30/2017
TAGS: KTFN EFIN PTER ECON NL
SUBJECT: TFTP/SWIFT: DUTCH MOF MEETS WITH NATIONAL DATA
PRIVACY AUTHORITY
REF: A. THE HAGUE 00163
B. THE HAGUE 02645
C. THE HAGUE 02572
Classified By: Economic Counselor Karen Enstrom,
reasons 1.4(b) and (d)
1. (C) SUMMARY. In its reply to the EU Commission query on
SWIFT and the Terrorist Finance Tracking Program (TFTP),the
GONL will propose a short term solution that addresses data
privacy concerns and a long term approach that addresses
implications to the broader global financial system. Dutch
Finance Ministry officials will seek feedback from their
German, British, and Swedish colleagues on this strategy.
Meanwhile, Dutch Finance Minister Zalm continues to push for
a balance between security and data protection concerns with
national data privacy authorities. END SUMMARY.
-------------- ---
DATA PROTECTION AUTHORITY ISSUES LETTER TO BANKS
-------------- ---
2. (C) On January 18, Dutch Minister of Finance Gerrit Zalm
and Ministry of Finance (MOF) officials Erik van Andel, Head
of the Financial Integrity Division, and Paul ten Westeneind,
Policy Officer, met with Jacob Kohnstamm, Chairman of the
Dutch Data Protection Authority (DPA). Econoff met with ten
Westeneind January 22 for a debrief on the meeting and to
discuss the status of the Dutch response to the EU Commission
regarding the EU's Article 29 Working Party (WP) report on
SWIFT.
3. (C) Ten Westeneind said the meeting focused on a January
10 DPA letter instructing Dutch banks to pressure SWIFT to
comply with WP recommendations (ref A). He said the letter
threatened the banking sector with "penalties" if it did not
present -- within 4 weeks -- plans for its own compliance.
Kohnstamm sought similar pressure on the banks from the MOF,
ten Westeneind added, but Zalm instead stressed the
importance of ensuring the smooth functioning of the
international payments system and fighting terrorism while
maintaining data privacy -- priorities shared with Econoffs
during previous discussions (refs A and B).
4. (C) Ten Westeneind expressed frustration with the letter,
noting that the DPA had failed to consult with the MOF before
sending out the letter even though the January 18 meeting
with Minister Zalm had already been scheduled. According to
ten Westeneind, Kohnstamm admitted he was aware of a GONL
consensus on the issue but issued the DPA letter nonetheless.
--------------
DUTCH REPLY TO COMMISSION ON SWIFT/TFTP
--------------
5. (C) The MOF delivered its response to the WP report and
queries about SWIFT and TFTP from the EU Commission on
January 25, ten Westeneind said. The Dutch reply emphasized
ensuring the smooth functioning of international payments
while also fighting terrorism and protecting data privacy.
The letter will also outline GONL suggestions for a
short-term and long-term strategy for resolving the
SWIFT/TFTP issue, he added.
6. (C) A short term solution would require banks to obtain
"informed consent" from customers and could include talks
with USG on enhanced data safeguards. The latter is intended
primarily to demonstrate Dutch willingness to address the
issue, ten Westeneind explained. In the long term, he said,
any solution would have to be robust and solid enough to
withstand the possible broadening of the issue beyond SWIFT
to other forms of international payments, such as credit
cards and jurisdictions beyond U.S.
--------------
REACHING OUT TO OTHER MEMBER STATES
--------------
7. (C) Ten Westeneind said that Zalm was enthusiastic about
the Dutch approach, which has already been shared with German
MOF officials. Ten Westeneind said he would be following up
with German MOF working level contacts. He also planned to
THE HAGUE 00000171 002 OF 002
call Swedish and UK MOF contacts to solicit their feedback on
the Dutch-proposed short and long term strategy.
ARNALL
SIPDIS
SIPDIS
STATE FOR EB/ESC/TFS, S/CT, IO/PSC
STATE ALSO FOR EUR/UBI, EUR/PGI, EUR/ERA (PWALKER)
TREASURY FOR TFFC AND OFAC
TREASURY ALSO FOR MJACOBSON, JFREIS
USEU FOR JUNDERWOOD
E.O. 12958: DECL: 01/30/2017
TAGS: KTFN EFIN PTER ECON NL
SUBJECT: TFTP/SWIFT: DUTCH MOF MEETS WITH NATIONAL DATA
PRIVACY AUTHORITY
REF: A. THE HAGUE 00163
B. THE HAGUE 02645
C. THE HAGUE 02572
Classified By: Economic Counselor Karen Enstrom,
reasons 1.4(b) and (d)
1. (C) SUMMARY. In its reply to the EU Commission query on
SWIFT and the Terrorist Finance Tracking Program (TFTP),the
GONL will propose a short term solution that addresses data
privacy concerns and a long term approach that addresses
implications to the broader global financial system. Dutch
Finance Ministry officials will seek feedback from their
German, British, and Swedish colleagues on this strategy.
Meanwhile, Dutch Finance Minister Zalm continues to push for
a balance between security and data protection concerns with
national data privacy authorities. END SUMMARY.
-------------- ---
DATA PROTECTION AUTHORITY ISSUES LETTER TO BANKS
-------------- ---
2. (C) On January 18, Dutch Minister of Finance Gerrit Zalm
and Ministry of Finance (MOF) officials Erik van Andel, Head
of the Financial Integrity Division, and Paul ten Westeneind,
Policy Officer, met with Jacob Kohnstamm, Chairman of the
Dutch Data Protection Authority (DPA). Econoff met with ten
Westeneind January 22 for a debrief on the meeting and to
discuss the status of the Dutch response to the EU Commission
regarding the EU's Article 29 Working Party (WP) report on
SWIFT.
3. (C) Ten Westeneind said the meeting focused on a January
10 DPA letter instructing Dutch banks to pressure SWIFT to
comply with WP recommendations (ref A). He said the letter
threatened the banking sector with "penalties" if it did not
present -- within 4 weeks -- plans for its own compliance.
Kohnstamm sought similar pressure on the banks from the MOF,
ten Westeneind added, but Zalm instead stressed the
importance of ensuring the smooth functioning of the
international payments system and fighting terrorism while
maintaining data privacy -- priorities shared with Econoffs
during previous discussions (refs A and B).
4. (C) Ten Westeneind expressed frustration with the letter,
noting that the DPA had failed to consult with the MOF before
sending out the letter even though the January 18 meeting
with Minister Zalm had already been scheduled. According to
ten Westeneind, Kohnstamm admitted he was aware of a GONL
consensus on the issue but issued the DPA letter nonetheless.
--------------
DUTCH REPLY TO COMMISSION ON SWIFT/TFTP
--------------
5. (C) The MOF delivered its response to the WP report and
queries about SWIFT and TFTP from the EU Commission on
January 25, ten Westeneind said. The Dutch reply emphasized
ensuring the smooth functioning of international payments
while also fighting terrorism and protecting data privacy.
The letter will also outline GONL suggestions for a
short-term and long-term strategy for resolving the
SWIFT/TFTP issue, he added.
6. (C) A short term solution would require banks to obtain
"informed consent" from customers and could include talks
with USG on enhanced data safeguards. The latter is intended
primarily to demonstrate Dutch willingness to address the
issue, ten Westeneind explained. In the long term, he said,
any solution would have to be robust and solid enough to
withstand the possible broadening of the issue beyond SWIFT
to other forms of international payments, such as credit
cards and jurisdictions beyond U.S.
--------------
REACHING OUT TO OTHER MEMBER STATES
--------------
7. (C) Ten Westeneind said that Zalm was enthusiastic about
the Dutch approach, which has already been shared with German
MOF officials. Ten Westeneind said he would be following up
with German MOF working level contacts. He also planned to
THE HAGUE 00000171 002 OF 002
call Swedish and UK MOF contacts to solicit their feedback on
the Dutch-proposed short and long term strategy.
ARNALL