Johnston said the foundation is concerned Australian banks and other financial institutions using the Swift service may be in breach of the Australian Privacy Act.

"As if the practice of banks offshoring customer records wasn't bad enough, now we discover that Swift, the organization that processes international fund transfers for Australian banks, has been giving banking records to the U.S. administration for several years," Johnston said.

"Our banking records have already been compromised by the actions of Swift in allowing the U.S. government to gain access to Australian banking records without independent judicial oversight.

"If Australian privacy laws cannot be enforced in this case, then all this talk by the Treasurer and Attorney-General about how Australia's tough privacy laws prevent our banking records leaving this country is completely meaningless."

The foundation has submitted a complaint to the privacy commissioner to investigate whether customer records are leaving the country.