Irish banks’ interpretation of data laws investigated

The Data Protection Commissioner is investigating Irish banks’ interpretation of data protection legislation that requires customers to give the bank photo identification

A number of banks have recently been sending letters to customers demanding that they supply their bank with proof of identity.

In a letter to customers, AIB said that they were required by law to hold copies of either a passport, driver’s licence or European National Identity card on file.

“AIB’s legal obligation to obtain and hold copies of identification documentation for all customers,” a letter seen by the Irish Examiner states.

Following on from the writing to customers the Data Protection Commissioners office received a number of complaints from customers who felt that the bank had no right to demand the documentation.

A spokesperson for the office of the Data Protection Commissioners confirmed that they were investigating the interpretation of the legislation that had been adopted by a number of regulated institutions.

Data Protection Commissioner Billy Hawkes is looking at how the banks and other regulated bodies interpreted the Criminal Justice Money Laundering and Finance Act 2010.

The question centres on whether the banks are required to request the information from existing account holders or does the legislation only apply to new accounts.

Despite attempts to contact them, none of the banks was willing to comment on any ongoing investigation.

The Data Protection Commission has previously rapped the banks’ knuckles for demanding too much personal information and for ending incorrect information to the Irish Credit Bureau.

AIB was instructed to write to 12,000 customers last year after its car finance unit sent incorrect information to the Irish Credit Bureau.