PDPC Notification on Criteria for Protection of Personal Data Sends or Transfers to a Foreign Country According to Section 29 of the PDPA
PDPC Notification on Criteria for Protection of Personal Data Sends or Transfers to a Foreign Country According to Section 29 of the PDPA
The Office of the Personal Data Protection Commission (“PDPC”) conducted a public hearing on the draft PDPC Notification on the Criteria for Protection of Personal Data Sends or Transfers to a Foreign Country According to Section 29 of the Personal Data Protection Act B.E. 2562 (2019) (“PDPA”) (“Notification”). The public hearing was opened between 27 October 2023 to 10 November 2023.
In addition to the exemptions for cross-border transfer of personal data provided in Section 28 of the PDPA (i.e., whitelist countries and other exemptions), Section 29 provides two additional mechanisms for the cross-border transferring of personal data, that is (1) cross-border transfer of personal data within inter-affiliate companies, provided that the personal data protection policy (also known as “Binding Corporate Rules” or “BCR”) is reviewed and certified by the PDPC; and (2) where in the absence of whitelist country (i.e., per Section 28) and the BCR has not been reviewed and certified by the PDPC, a data controller may cross-border transfer personal data provided that an appropriate safeguard that ensures the enforceability of personal data subject’s rights and a legally remedial measures has been put in place.
In this regard, the Notification sets out the required characteristics of the BCR and the appropriate safeguard as follows:
- The legitimacy and enforceability of BCR against the juristic person, natural person, involving data controllers, data processors, and receivers of personal data within the same affiliated company, provided that such enforceability shall be extended to the employees and personnel involved in the transferring and receiving of personal data.
- The terms that ensure the protection of personal data, the rights of the data subject, and the right to file a complaint in relation to the transferred personal data.
- The security measures shall be in accordance with those prescribed under the personal data protection law.
The referred to appropriate safeguard could be in the form of either (1) a data transfer agreement; (2) a personal data collection, use, and disclosure certification; or (3) a bilateral agreement between international organizations or agencies.
The Notification went further to prescribe that the data transfer agreement mentioned above could be either of the following: (1) the agreement between the transferring and receiving parties with the required contractual clauses; (2) ASEAN Model Contractual Clauses for Cross-Border Data Flows; or (3) Standard Contractual Clauses for the Transfer of Personal Data to Third Countries issued pursuant to Article 46 (1), (2) (c), and 28 (7) of Regulation (EU) 2016/679 or the European Union General Data Protection Regulation, commonly known as GDPR.
The Notification consists of great details; international organizations or corporations may be required to closely monitor the development of this Notification until its publication and enforcement. It seems that PDPC has its interpretation and does not follow that of GDPR. Thus, it is necessary for the data controller that follows the practice in the EU to revisit this issue, especially those who rely upon the Standard Contractual Clauses (“SCC”).
In the EU, many EU-related companies adopted SCC, which are pre-approved contractual clauses issued by the European Commission that can be used by organizations to ensure adequate safeguards for data transfers to countries outside the EU. While SCC provides a more straightforward and less time-consuming solution for organizations, it is standardized contractual clauses that cannot be modified. BCR provides more flexibility and customization options compared to SCCs. It can be customized to align with the specific requirements of a business. Once implemented and operational, BCR is significantly easier to manage in comparison to intra-group contracts that include SCC. Additionally, BCR establishes a rigorous level of compliance with the PDPA as it requires approval from PDPC, thereby reducing the business’s vulnerability and being recognized as the benchmark for achieving compliance. It is suitable for multinational organizations with subsidiaries or affiliates in different countries.
Author: Panisa Suwanmatajarn, Managing Partner.
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