MEPs said the deal negotiated by EU governments provided insufficient privacy safeguards. File Photo
The European Parliament has blocked a key agreement that allows US anti-terror officials to monitor Europeans' bank transactions.
The vote was a rebuff to intensive US lobbying for EU help in counter-terrorism investigations, the BBC reported.
EU governments had negotiated a nine-month deal which would have allowed the US to continue accessing the Swift money transfer system.
But MEPs said the deal provided insufficient privacy safeguards.
Lawmakers in Strasbourg voted 378-196 against the deal, with 31 abstentions.
Last Friday, the European Parliament's civil liberties committee recommended that the full parliament reject the interim nine-month deal between the EU and US.