While I tend to agree with what Cimex says, I think he has made two errors. Firstly I think he means the answer to question is "NO" (not "yes") "provided proper safeguards are built in..."
But he is also surely wrong in his belief that the banks safeguard our privacy in their databanks. The true facts are the so-called "lawful authorities" can access any UK citizen's bank account, without the person even knowing and with the Blair government's blessing. Moreover, they do just that if THEY consider it appropriate, and we can do damn all to stop them.
Secondly anybody paying a sum of money into their account is required to have to tell the bank staff where they got that money, which I would consider to be an outrageous interference with our personal right of privacy. I would feel it appropriate to reply "mind your own bloody business". All this twaddle about "money laundering" seems to conveniently overlook the fact that the banks make profits of nearly Ten Billion pounds per year I repeat TEN BILLION POUNDS per year by fiddling us, such as as has been proved recently by an independent study, overcharging people who have gone overdrawn by ten times the true cost, and then telling lies that that is what it cost them!
So if anybody in the world is guilty of "money laundering", fiddling the facts and contravention of a person's right to privacy it is surely these nefarious Directors of the Banks! So why don't these "Liberty" people say that - not concern themselves with trivia like medical records, which as Cimex says "could save a person's life"!
That said my answer on Jeannebaxter's question is same as Cimex's. "NO" provided there are proper safeguards, which do not seem to have been properly thought through as yet.