Personal Data Transfers in Hong Kong
Data is the foundation of a company’s digital strategies. It drives business innovation and propels digital transformation. But with the growing volume of data, companies need a reliable and robust framework to govern its use. A good data governance structure will enable organizations to take the right steps toward business value and success. It will also ensure that data is used in compliance with regulatory and contractual obligations.
Padraig Walsh from the Tanner De Witt Data Privacy practice group takes a closer look at personal data transfers in Hong Kong and the impact of local interpretations of key concepts that have significant implications for businesses.
A basic principle is that a data user must comply with the six Data Protection Principles (“DPP”) as they apply to personal data it controls. This includes compliance with the law on cross-border transfer of data. It is critical for businesses to be aware of this as they prepare and implement global compliance data transfers.
What are the key points to consider in respect of data transfers?
When a Hong Kong business intends to transfer personal data abroad, it must verify that the purpose for which the data was collected (and the classes of persons to whom the data will be transferred) is still lawful under the PICS. This step is markedly less onerous in Hong Kong than under GDPR and reflects the fact that Hong Kong has been at the forefront of modernising its data protection regime since 1996.
In addition, a Hong Kong data exporter must check that its Personal Information Collection Statement (“PICS”) has disclosed to a data subject that the personal data it controls may be transferred as specifically contemplated. Unless this is done, a further obligation will arise to obtain the voluntary and express consent of the data subject to transfer his or her personal data for a new purpose not set out in the original PICS.
If the PICS does not disclose this requirement, the data exporter must assess whether the foreign jurisdiction’s laws and practices bring its level of personal data protection up to that required by the DPPs. If this is not the case, the data exporter should identify and adopt supplementary measures to bring the level of protection up to those standards. This can include technical measures such as encryption, pseudonymisation or split processing, and contractual provisions imposing obligations on audit, inspection and reporting, beach notification and compliance support and co-operation.
Having an effective data governance structure is the key to successful implementation of a DPO and efficient compliance with cross-border data transfers. In order to achieve this, it is important that data governance roles and responsibilities are clearly defined. Data governance leaders act as communication bridges between business and IT and drive ongoing data audits and metrics that measure program success and ROI. They are typically senior business analysts or enterprise architects and can help to translate business needs into IT-friendly solutions. In addition, they can act as escalation points for breaches and other data governance issues.