应对《个人信息出境标准合同办法》行动建议（英文）-16页_1mb

Overview of Compliance Management for Cross-Border Transfers of Personal Information

In response to China's evolving data protection laws, the KPMG report analyzes the new "Measures for Standard Contracts for Cross-Border Transfer of Personal Information" and its implications for businesses handling personal data transfers outside China. Adhering to these regulations is crucial for legal compliance and risk mitigation.

Key Regulations and Timeline

China has introduced several regulations governing cross-border data transfers:

• The "Measures for Standard Contracts" and "Personal Information Cross-Border Transfer Standard Contract" were issued in 2023 and became effective in June 2023.
• Other key regulations include the Security Assessment Measures (2022) and the Personal Information Protection Law (PIPL, 2021), which together provide a framework for compliance.

Compliance Paths

Organizations can comply with cross-border data transfer requirements through three main paths:

1. Security Assessment: Mandatory for critical information infrastructure operators (CIIOs) or entities meeting specific data volume thresholds, involving a declaration and risk evaluation.
2. Standard Contract: A flexible option where data processors enter into a standardized contract with offshore recipients, focusing on adherence to terms and conducting PIPIA.
3. Certification: Requires obtaining personal information protection certification, aligning with national standards and undergoing audits.

New Features of the Standard Contract

The Standard Contract includes provisions that grant personal information subjects third-party beneficiary rights, ensuring individuals can enforce certain protections. Key elements include:

• A six-month grace period for rectifying non-compliant activities.
• Detailed obligations for both the data processor and recipient, covering data minimization, security measures, and contractual自律.
• Alignment with PIPL Article 55, requiring PIPIA for contracts involving overseas transfers.

Personal Information Protection Impact Assessment (PIPIA)

PIPIA is a mandatory assessment for high-risk processing activities, including cross-border transfers. It involves evaluating risks to personal rights, documenting findings, and maintaining records for at least three years. PIPIA must be conducted before signing contracts or obtaining certifications.

Challenges and Recommendations

Common challenges include identifying applicable PIPIA scenarios, lack of standardized processes, and integrating compliance with foreign regulations. Recommendations emphasize:

• Comprehensive inventory of data processing activities and PIPIA scope.
• Developing localized PIPIA toolkits and processes.
• Choosing the appropriate compliance path based on business needs, with continuous monitoring and updates.

KPMG's Role

KPMG offers services including PIPIA consulting, compliance audits, and support for Security Assessments and certifications, enhancing organizations' ability to navigate cross-border data regulations.

Adherence to these regulations is essential for mitigating legal risks and ensuring robust data protection practices in international operations.