Worplace Romance - Does this "relationship" qualify?

I recently was involved in a conversation w/ a friend and was wondering what the professionals in this group thought about this topic: work place romances involving HR.

The parties involved work for a small non-profit company. One is a young HR Coordinator (not entry level but not a manager,) the other works in a completely separate department. They rarely work together on work related business. The two are not in a romantic or sexual relationship yet, they are flirting and have gone out on "dates" after work. The HR person does not deal in employee relations and have several managers above him. However. the HR person is privy to sensitive information regarding all employees in the company.

The company itself only has 1 policy that pertains to this:

1. Relationships between employees are discouraged and should be reported if they are in the position of supervising, reviewing or have any formal influence on the job, pay or benefits.

Do you think this "relationship" qualifies?"

This is the actual COMPANY X Handbook Policy regarding workplace romance:

COMPANY X acknowledges that personal relationships, including romantic ones, arise in the workplace. No COMPANY X employee who is in a romantic or sexual relationship with another COMPANY X employee or COMPANY X volunteer should be in the position of supervising, reviewing or having any formal influence on the job evaluation, pay or benefits of that fellow employee or that volunteer.

If such a situation arises, the more senior employee has an obligation to report the matter to the HR SVP or HR Director.

No COMPANY X employee with the title Senior Vice President or higher is permitted to be involved in a romantic or sexual relationship with any other COMPANY X employee or COMPANY X volunteer without an express waiver from the CEO.

Regardless of the nature of any personal relationship, COMPANY X expects all employees to act professionally and in the best interests of COMPANY X at all times.

thoughts? after reading the COMPANY X policy, it actually seems more lenient then I thought. It doesn't strict forbid anything.