ABSTRACT
The banking industry is a data-intensive sector. The data relates to large numbers of contracts maintained with large numbers of customers. In addition, the orders received from the customers generate new flows of information. These data flows run within individual banks, within banking groups and between different banks. The data flows are channelled through various kinds of intermediary, for example correspondent banks, network operators and clearing houses. These data flows often cross national borders. It is hardly surprising, therefore, that privacy legislation can have a major impact on banking activities. Privacy legislation regulates the collection, processing, use and disclosure of data on individuals. This chapter deals above all with the influence of privacy legislation on cross-border payment transactions. First of all, however, the system of payment transactions is examined and placed in the context of the concepts commonly used in privacy legislation. Close attention will also be paid in this connection to the Directive on the protection of personal data. The emphasis is put on the potential practical consequences of the Directive.1
