International data transfer: Overview, definition and example
What is international data transfer?
International data transfer refers to the process of sending personal data from one country to another, especially when the recipient country does not have the same level of data protection laws as the originating country. These transfers often happen when companies operate across borders, need to share data with foreign affiliates, or use cloud services located outside their home country.
Why is international data transfer important?
International data transfer is important because it allows businesses to operate globally, but it also raises concerns about privacy and data security. Different countries have different standards for protecting personal data, so transferring data to a country with lower standards can expose individuals to risks. Legal frameworks, like the GDPR in the EU, set rules to ensure that personal data remains protected even when transferred abroad.
Understanding international data transfer through an example
For instance, a company in the United States that provides services to customers in the European Union might need to transfer personal data, like customer names and email addresses, to its US-based servers for processing. Under the GDPR, such transfers can only happen if the company ensures that the data will be adequately protected, using mechanisms like Standard Contractual Clauses (SCCs) or ensuring the US has a data protection framework that is "adequate" under EU law.
Another example could be a multinational company based in Canada that needs to send employee payroll data to its office in India. The company must ensure that the data is transferred securely and that both Canada and India comply with relevant data protection regulations, such as obtaining the necessary consent or using a legally acceptable transfer mechanism.
Example of an international data transfer clause
"The parties agree that any personal data transferred between them will be handled in compliance with applicable data protection laws, including ensuring that appropriate safeguards, such as Standard Contractual Clauses, are in place to protect the data during its transfer to a third country."
Conclusion
International data transfer is essential for global business operations, but it must be done carefully to ensure compliance with privacy laws. It requires businesses to adopt appropriate safeguards to protect personal data, especially when it’s transferred to countries with weaker data protection standards. Ensuring compliance can help businesses avoid penalties and safeguard individuals' privacy rights.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.