VZCZCXRO2296
RR RUEHGA RUEHHA RUEHQU RUEHVC
DE RUEHOT #2458/01 2282205
ZNR UUUUU ZZH
R 162205Z AUG 06
FM AMEMBASSY OTTAWA
TO RUEHC/SECSTATE WASHDC 3497
INFO RUCNCAN/ALL CANADIAN POSTS COLLECTIVE
RUEATRS/DEPT OF TREASURY WASH DC
RUEAHLC/DEPT OF HOMELAND SECURITY WASHDC
RUEAWJA/DEPT OF JUSTICE WASHDC

UNCLAS SECTION 01 OF 02 OTTAWA 002458 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE FOR WHA/CAN, EB/IFD/OIA, EB/CBA, AND S/CT 
TREASURY FOR IMI:HOEK 
 
E.O. 12958: N/A 
TAGS: EFIN ECPS ECON PTER CA
SUBJECT: CANADA'S PRIVACY COMMISSIONER ANNOUNCES 
INVESTIGATION OF SWIFT BANK TRANSACTION MESSAGING SYSTEM 
 
REF: A. OTTAWA 2158 
 
     ¶B. OTTAWA 2149 
     ¶C. OTTAWA 2060 (NOTAL) 
     ¶D. STATE 103650 
 
¶1. (U) SUMMARY:  THE JUNE 23 U.S. PRESS ARTICLES DISCLOSING 
THE EXISTENCE OF THE USG'S TERRORIST FINANCING TRACKING 
PROGRAM AND THE COOPERATION IT RECEIVED FROM THE 
INTERNATIONAL "SWIFT" BANK TRANSACTION MESSAGING SYSTEM HAVE 
RESULTED IN THE AUGUST 14 ANNOUNCEMENT OF TWO INVESTIGATIONS 
OF SWIFT BY CANADA'S OFFICE OF THE PRIVACY COMMISSIONER 
(OPC).  ONE INVESTIGATION WAS SELF-INITIATED BY THE PRIVACY 
COMMISSIONER HERSELF AND THE SECOND WAS REQUESTED BY TWO 
PRIVACY WATCH DOG GROUPS.  THE INVESTIGATIONS WILL SEE 
WHETHER THE POSSIBLE DISCLOSURE OF PERSONAL BANKING DATA 
ABOUT CANADIANS TO THE USG OUTSIDE APPROVED PROCESSES FOR 
SUCH DATA TRANSFERS (I.E., WITH JUDICIAL AUTHORIZATION; VIA 
FINTRAC, CANADA'S FINANCIAL INTELLIGENCE UNIT; OR VIA A 
MUTUAL LEGAL ASSISTANCE TREATY (MLAT) WAS APPROPRIATE AND 
VIOLATED CANADA'S PRIVATE SECTOR PRIVACY LAW.  END SUMMARY. 
 
¶2. (U)  ON AUGUST 14, CANADA'S OFFICE OF THE PRIVACY 
COMMISSIONER (OPC) OFFICIALLY LAUNCHED AN INVESTIGATION OF 
THE SOCIETY FOR WORLDWIDE INTERBANK FINANCIAL 
TELECOMMUNICATION (SWIFT), THE BELGIAN-BASED COMPANY THAT 
OPERATES AS A WORLDWIDE MESSAGING SYSTEM FOR TRANSMITTING 
BANK TRANSACTION INFORMATION IN MORE THAN 200 COUNTRIES, 
INCLUDING CANADA.  THE OPC SAYS THAT THE PURPOSE OF THE 
INVESTIGATION IS "TO DETERMINE WHETHER PERSONAL INFORMATION 
RELATING TO CANADIANS' FINANCIAL TRANSACTIONS IS IMPROPERLY 
DISCLOSED BY SWIFT TO FOREIGN AUTHORITIES."  THE OPC HAS 
NOTIFIED SWIFT OF ITS INVESTIGATION. 
 
¶3. (U)  PRIVACY COMMISSIONER JENNIFER STODDART NOTED THAT 
"THE RISKS RESULTING FROM PERSONAL INFORMATION FLOWING ACROSS 
BORDERS IS SOMETHING THAT WE HAVE BEEN EXPRESSING CONCERNS 
ABOUT FOR SOME TIME.  THE SWIFT SITUATION CONCERNS PRIVACY 
COMMISSIONERS WORLD WIDE AND IS SOMETHING WE NEED TO EXAMINE 
IN MORE DETAIL.  ALTHOUGH THERE ARE TIMES WHEN WE ARE UNABLE 
TO LAWFULLY INVESTIGATE A COMPLAINT ABOUT SOMETHING TAKING 
PLACE OUTSIDE CANADA WITH CANADIANS' PERSONAL INFORMATION, WE 
HAVE DETERMINED THAT WE ARE, IN FACT, IN A POSITION TO 
INVESTIGATE THIS IMPORTANT MATTER." 
 
¶4. (U)  BEFORE LAUNCHING ITS OFFICIAL INVESTIGATION, THE OPC 
LOOKED INTO THE SITUATION TO EXAMINE WHAT WAS TAKING PLACE 
AND TO DETERMINE THE EXTENT TO WHICH IT COULD GET INVOLVED, 
GIVEN QUESTIONS OF JURISDICTION AND THE APPLICATION OF 
CANADA'S PRIVACY LAWS.  BASED ON THE INFORMATION HER OFFICE 
GATHERED, THE PRIVACY COMMISSIONER DECIDED THAT SHE HAS 
REASONABLE GROUNDS TO SELF-INITIATE A COMPLAINT AGAINST SWIFT 
TO SEE IF THERE HAS BEEN A VIOLATION OF THE PERSONAL 
INFORMATION PROTECTION AND ELECTRONIC DOCUMENTS ACT (PIPEDA), 
CANADA'S PRIVATE SECTOR PRIVACY LAW. 
 
¶5. (U)  MOREOVER, THE OPC HAS RECEIVED A COMPLAINT AGAINST 
CANADA'S SIX LARGEST BANKS AND THEIR INVOLVEMENT IN THE SWIFT 
MATTER.  THIS WAS TRIGGERED BY A JULY 27 COMPLAINT FILED WITH 
THE OPC AGAINST THE ROYAL BANK OF CANADA, THE 
TORONTO-DOMINION BANK, THE BANK OF NOVA SCOTIA, THE CANADIAN 
IMPERIAL BANK OF COMMERCE, THE BANK OF MONTREAL AND THE 
NATIONAL BANK OF CANADA.  THE CANADIAN INTERNET POLICY AND 
PUBLIC INTEREST CLINIC (CIPPIC) AT THE LAW FACULTY AT THE 
UNIVERSITY OF OTTAWA, AND PRIVACY INTERNATIONAL, A 
LONDON-BASED SURVEILLANCE AND PRIVACY WATCH DOG, FILED THE 
COMPLAINT.  NO TIME FRAME FOR THE COMPLETION OF THE SWIFT 
INVESTIGATIONS WAS DISCLOSED. 
QINVESTIGATIONS WAS DISCLOSED. 
 
¶6. (U)  THE WATCH DOG COMPLAINT ALLEGES THAT CANADIAN BANK 
DISCLOSURES OF CUSTOMER DATA VIA SWIFT TO THE USG CONSTITUTE 
A VIOLATION OF PIPEDA, SINCE THEY "ARE MADE A) IN RESPONSE TO 
ADMINISTRATIVE SUBPOENAS OR OTHER REQUESTS OF QUESTIONABLE 
VALIDITY, AND B) ENTIRELY OUTSIDE THE LEGAL PROCESSES 
ESTABLISHED BY CANADA, THE U.S., AND OTHER COUNTRIES OFR THE 
INTERNATIONAL SHARING OF SUCH DATA." 
 
¶7. (U)  EMBASSY COMMENT: WHILE THE PRIVACY COMMISSIONER'S 
ACTIONS AND REPORTS RECEIVE SIGNIFICANT PRESS ATTENTION IN 
CANADA, THE COMMISSIONER IS AN OFFICER OF PARLIAMENT, NOT OF 
THE GOC, AND SHE HAS NO DIRECT ENFORCEMENT POWER.  THE OPC'S 
FUNCTION IS TO ADVISE AND INFORM PARLIAMENT AND ITS VIEWS MAY 
DIFFER FROM THOSE HELD BY THE HARPER GOVERNMENT.  END COMMENT. 
 
Visit Canada's Classified Web Site at 
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OTTAWA 00002458  002 OF 002 
 
 
 
WILKINS