Binding Corporate Rules for Data Processors

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A recent opinion by a learned group within the EU Commission, the Article 29 Working Party, has provided for Binding Corporate Rules for data processors, a method to transfer data legally out of Europe which may provide a significant advantage for those companies which adopt these new Binding Corporate Rules.

One of the single most complex issues facing multinational companies today is how to manage the personal data of their customers in an effective manner while maintaining compliance with applicable law. The real challenge comes from the fact that personal data is an intangible, and it can cross the globe with the click of a button.

Data protection and privacy regulators are fearful that personal data which isadequately protected and safeguarded under the laws of their jurisdiction will lose those protections once transferred to a foreign jurisdiction. In light of this fear, many countries have enacted data protection and privacy laws which regulate the transfer and export of personal data. The most notable of these are the laws in Europe where data protection and privacy law is considered to be the most difficult and have greatly influenced many other jurisdictions.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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