EU banks 'must store records for police'

Personal data on electronic bank transfers made to and from the European Union (EU) should be stored and made available on request to law enforcement authorities fighting terrorism, the European Commission has proposed.

Its tabled regulation, which will be pushed hard during the UK presidency of the EU, says banks and payment services must store the name, address and account number of customers sending money out of the EU.

It also insists that such information is provided on the source of funds being transferred into the EU, and that transfers should be rejected if a payment-handler 'repeatedly fails to supply the required information'.

For transfers of money within the EU, storing an account number will be sufficient. In all cases, personal data would be stored for five years, and only used by police and intelligence services for fighting terrorism.

EU internal market Commissioner Charlie McCreevy said: 'The fight against terrorism requires a sustained and focused effort on many fronts.'