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A Guide to GDPR International Transfers

Posted by Data Send UK / Written by Tony Stewart

The General Data Protection Regulation (GDPR) imposed by the European Union in 2018 sets strict rules regarding the international transfer of personal data to ensure the protection of individuals' data privacy rights. For organisations conducting business globally, complying with GDPR regulations on international data transfers is essential to avoid hefty fines and maintain trust with customers.

What is GDPR?

The GDPR is a comprehensive data protection law that governs how organisations collect, process, and transfer personal data of individuals residing in the European Economic Area (EEA). It aims to empower individuals with more control over their personal data while imposing obligations on organisations to ensure data protection and privacy.

What Constitutes an International Data Transfer?

An international data transfer occurs when personal data is transferred outside the EEA to a country or organisation that does not provide an adequate level of data protection as determined by the European Commission. This could include transferring customer data to a third-party service provider located outside the EEA or sharing employee information with global subsidiaries.

Legal Basis for International Data Transfers

Under the GDPR, organisations must have a legal basis for transferring personal data internationally. The most common legal bases for international transfers include:

1. Adequacy Decision: The European Commission determines whether a country or organisation outside the EEA offers an adequate level of data protection. If an adequacy decision is in place, organisations can freely transfer data to that country without additional safeguards.

2. Standard Contractual Clauses (SCCs): Organisations can use SCCs, approved contractual clauses by the European Commission, to ensure that the data recipient provides an adequate level of protection for personal data.

3. Binding Corporate Rules (BCRs): Multinational organisations can implement BCRs, internal data protection policies approved by Data Protection Authorities, to facilitate international data transfers within the organisation.

4. Derogations: In certain exceptional situations where other legal bases are not applicable, organisations may rely on specific derogations for international data transfers, such as explicit consent from data subjects or the transfer being necessary for the performance of a contract.

Challenges and Considerations for GDPR International Transfers

Ensuring compliance with GDPR regulations on international data transfers poses several challenges for organisations. Some key considerations include:

1. Data Mapping: Organisations must have a clear understanding of the personal data they collect, its flow across borders, and the legal basis for each international transfer.

2. Data Minimisation: Minimising the transfer of personal data to only what is necessary for the intended purpose can reduce compliance risks and enhance data protection.

3. Risk Assessment: Conducting a risk assessment to identify potential risks associated with international data transfers and implementing appropriate safeguards to mitigate those risks.

4. Third-Party Due Diligence: Organisations should assess the data protection practices of third parties receiving personal data and ensure they meet GDPR requirements.

GDPR International Transfers: Best Practices

To navigate the complexities of GDPR international transfers effectively, organisations can adopt the following best practices:

1. Implement Data Protection Impact Assessments (DPIAs) to evaluate the privacy risks associated with international data transfers and implement necessary safeguards.

2. Maintain detailed records of international data transfers, including the legal basis, recipients, and data categories transferred.

3. Regularly review and update data protection policies and procedures to align with evolving regulatory requirements and best practices.

4. Provide ongoing training to employees involved in international data transfers to ensure compliance with GDPR regulations.

Conclusion

GDPR regulations on international data transfers are a critical aspect of data protection and privacy compliance for organisations operating in a globalised environment. By understanding the legal basis for transfers, implementing appropriate safeguards, and adopting best practices, organisations can ensure compliance with GDPR requirements while safeguarding individuals' data privacy rights.