Members of a European Parliament subcommittee dealt a blow to US-EU relations by voting to reject a proposed bank data sharing deal between the US and Europe in a preliminary vote on Thursday.

The agreement allows the US to access information gathered by the Society for Worldwide Interbank Financial Telecommunication (SWIFT) about bank transfers within Europe. SWIFT manages global transactions between thousands of financial institutions in over 200 countries.

Members of the parliament's civil liberties committee voted by 29 votes to 23 to reject the SWIFT deal, arguing that the deal fails to protect the privacy of EU citizens.

US authorities say access to bank details is vital to counterterrorism efforts, but many in Europe object to the widespread invasion of privacy.