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On June 24, 2021, Australian parliament passed legislation establishing a framework for its enforcement agencies to access certain electronic data held by companies outside of Australia for law enforcement and national security purposes.  The law paves the way for the establishment of a bilateral agreement with the United States under the U.S. Clarifying Lawful Overseas Use of Data (CLOUD) Act.

Similar to the function of the CLOUD Act, the Telecommunications Legislation Amendment (International Production Orders) Bill 2020 enables Australian enforcement authorities to compel companies covered by the statute to provide data, regardless of where the data is stored.  The legislation introduces international production orders, a form of legal process for compelling real-time interception of communications or the production of stored communications and telecommunications data, which can be served directly on communications providers in foreign countries with which Australia has an agreement.…
Continue Reading Australia Passes Cross-Border Data Access Law, Creates a Pathway for CLOUD Act Bilateral Agreement

On June 28, 2021, the European Commission adopted two decisions finding that the UK’s data protection regime provides an “adequate” level of protection for personal data transferred to the UK from the EU.  The first decision covers transfers governed by the GDPR, and permits private companies located in the EU to continue to transfer personal data to the UK without the need for additional arrangements (such as the Commission’s new Standard Contractual Clauses (“SCCs”), which we discuss here).  The second decision covers transfers under the Data Protection and Law Enforcement Directive, and permits EU law enforcement agencies to continue to transfer personal data to their counterparts in the UK.…
Continue Reading European Commission Adopts Final UK Adequacy Decisions

The new standard contractual clauses (“SCCs“) issued by the European Commission (see our prior blog post here) continue to prove controversial.  Among other things, the SCCs require that the law of the European Union (“EU“) Member State underpinning them provides third-party beneficiary rights.  Most EU Member States are civil law jurisdictions that already provide such rights.  Ireland, however, is a common law jurisdiction like the U.S. and the UK, and as such, depends largely on evolving case law to define the scope of various rights and obligations.…
Continue Reading New Standard Contractual Clauses Raise Questions Under Irish Law

On Episode 15 of Covington’s Inside Privacy Audiocast, Dan Cooper is joined by Nick O’Connell, head of Al Tamimi’s Digital & Data practice in Saudi Arabia. Nick shares his insights on recent privacy developments in Saudi Arabia and the broader Middle East region, in particular as they relate to emerging data protection frameworks in these…

On June 10, 2021, the Standing Committee of China’s National People’s Congress (“NPC”) enacted the Data Security Law (“DSL”), which will take effect on September 1, 2021 (the official Chinese version is available here and Covington’s unofficial English translation is available here). This law creates a framework for the protection of broadly defined “data security” from a national security perspective.…
Continue Reading China Enacts Data Security Law

On June 1, 2021, several German supervisory authorities (“SAs”) announced the launch of a “nationwide investigation” into German companies transferring personal data outside of the European Economic Area.  Currently, there is no official list of all the SAs participating in the investigation, but at least 8 of Germany’s 16 regional SAs have announced their intention to take part in it, including: Baden Wuerttemberg, Bavaria, Berlin, Brandenburg, Hamburg, Lower Saxony, Rhineland-Palatinate, and Saarland.…
Continue Reading German Supervisory Authorities Probe Data Transfers

On Episode 14 of Covington’s Inside Privacy Audiocast, Dan Cooper and Yan Luo discuss recent privacy developments in China, in particular as they relate to China’s draft Data Security Law.

Covington’s Inside Privacy Audiocast offers insights into topical global privacy issues and trends. Subscribe to our Inside Privacy Blog to receive notifications on new episodes.

In Episode 12 of our Inside Privacy Audiocast, together with special guest Advocate Pansy Tlakula, Chairperson of the Information Regulator of South Africa, we discussed the Information Regulator’s mandate and the implementation of data protection legislation in South Africa.  Now, with less than a month to go before South Africa’s Protection of Personal Information Act, 2013 (“POPIA”) takes full effect on July 1, 2021, it is critical for organizations operating in South Africa to ensure that they are ready, if and when the Information Regulator comes knocking.

It is only when organizations start their POPIA journey that they realize just how wide the POPIA net is cast, and that very few businesses fall outside of its reach.  The road to POPIA compliance should be viewed as a marathon, and not a sprint.  While implementing and maintaining an effective POPIA compliance program will take continued effort and resources well beyond the July 1, 2021 go-live date, here we outline five steps to which companies subject to POPIA should give their attention in the short term.

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Continue Reading Final Countdown to POPIA Compliance: Five Critical Steps to Take Before July 1st, 2021

In April 2021, the European Commission released its proposed Regulation Laying Down Harmonized Rules on Artificial Intelligence (the “Regulation”), which would establish rules on the development, placing on the market, and use of artificial intelligence systems (“AI systems”) across the EU. The proposal, comprising 85 articles and nine annexes, is part of a wider package of Commission initiatives aimed at positioning the EU as a world leader in trustworthy and ethical AI and technological innovation.

The Commission’s objectives with the Regulation are twofold: to promote the development of AI technologies and harness their potential benefits, while also protecting individuals against potential threats to their health, safety, and fundamental rights posed by AI systems. To that end, the Commission proposal focuses primarily on AI systems identified as “high-risk,” but also prohibits three AI practices and imposes transparency obligations on providers of certain non-high-risk AI systems as well. Notably, it would impose significant administrative costs on high-risk AI systems of around 10 percent of the underlying value, based on compliance, oversight, and verification costs. This blog highlights several key aspects of the proposal.

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Continue Reading European Commission Proposes New Artificial Intelligence Regulation

In Part 1 of this blog series (see here), we discussed recent data protection developments in China’s e-commerce sector.  In this post, we discuss recently issued rules aimed at improving data governance in China’s financial sector that could also have data protection implications.  These rules can be categorized as falling into two groups: the first group focuses on general data governance requirements applicable to all financial institutions, and the second group regulates specific types of financial services.

These new rules were published by the China Banking and Insurance Regulatory Commission (“CBIRC”) and People’s Bank of China (“PBOC”) during the first quarter of 2021, and include:

  • Guidelines for Data Capacity-Building in the Financial Industry (“Guidelines”) (official Chinese version available here);
  • Financial Data Security – Data Life Cycle Security Standard (“Standard”) (official Chinese version available here); and
  • Draft Credit Reporting Management Measures (“Draft Measures”) (official Chinese version available here).

Both the Guidelines and Standard provide detailed criteria for financial institutions on the proper collection, use and protection of “financial data,” while the Draft Measures introduce data-related requirements for licensed credit reporting agencies.  All of these new rules include data security requirements for both personal and non-personal data.

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Continue Reading Privacy Updates from China: Proliferation of Sector-Specific Rules As Key Legislation Remains Pending – Part 2: Data Protection in the Financial Sector