Banks have agreed to inform employees in detail before transferring data to foreign tax investigators.

Federal data protection watchdog Hanspeter Thür said five banks had signed on to notify employees, after Thür threatened to ask the Federal Administrative Court to force banks to protect employee data.

On Tuesday, Thür met with bank officials to prompt a transparent process for employees.

He said the banks carried responsibility for transferring data abroad, namely to the United States, and he said employees should have an opportunity to exercise their rights.

Thür has said he doubts data handovers to the U.S. are legal.