In today’s digital world, information has become as valuable as currency, facilitating countless online transactions and interactions. Nevertheless, benefits that you can get in the electronic dimension such as simplicity and connectedness are accompanied by risks of much higher magnitude, including breaches and privacy violations that can profoundly impact individuals globally.
Personal data encompasses a broad spectrum of information, from basic identifiers to sensitive details like financial records and medical histories. Cross-border movement of personal data for different purposes, including international transactions, cloud computing services, and collaborative projects, has now become a part of business operations and practices for organizations and individuals.
International data transfers involve the process of moving personal information from one country to another, generally between controllers, processors, or other recipients. These transfers occur for various reasons, such as, outsourced services, global operations, or collaboration between multinational entities. Although enabling uninterrupted sharing and working on digital platforms, this practice also poses substantial risk factors with respect to compliance with data protection laws and regulations. The regulation of cross-border data transfers varies greatly from country to country; in some countries such as Argentina and China, it is very difficult for companies to transfer personal data beyond their borders.
It is necessary to remember that the transfer of personal data out of Armenia must be conducted with due consideration and full compliance to the relevant laws and regulations. The level of security in Armenia is directly influenced by these rules; therefore, it is crucial important to understand and comply with them.
Legal and Regulatory Background
The protection of natural persons in relation to the processing of personal data is a fundamental right upheld by governments around the world through enacted laws. Among these, the European Union’s General Data Protection Regulation (GDPR) is considered one of the most comprehensive and far-reaching regulatory frameworks, imposing strict requirements on data collection, processing, and consent. Under GDPR, organizations must ensure that all cross-border transfers of personal data comply with the regulation’s strict requirements. Notably, Armenian personal data protection regulation implements the provisions set out in the GDPR diligently and proficiently, although, there are differences in the level of protection provided by the GDPR, which comprehensively regulates Armenian legislation.
In Armenia, the responsibility for the protection of personal data is entrusted to the Agency for Protection of Personal Data (PDPA) under the Ministry of Justice of the Republic of Armenia. The law of the Republic of Armenia on the protection of personal data governs the process and terms for handling personal data, as well as overseeing their usage by state administration or local self-government bodies, state or community institutions or organizations, legal or natural persons.
For data transfer to other states, several essential measures must be taken:
· Obtaining the data subject’s consent;
· Transferring data to states, that ensure an adequate level of protection of personal data;
· Transferring data in compliance with international agreements;
· In case the data is to be transferred to a state, that cannot ensure an adequate level of protection of personal data, obtaining the permission of the authorized body is mandatory.
The list of states with an adequate level of protection of personal data is published by the Agency for Protection of Personal Data.
Companies bear the responsibility safeguarding personal data, requiring swift and effective action to address breaches and mitigate harm to data subjects. This may include investigating the root cause of the breach, fixing the vulnerability, and providing redress or compensation to affected individuals, if necessary. Failure to comply with data protection laws can result in significant fines and penalties from regulators. The Armenian Data Protection Authority has the authority to impose fines for violations of data protection laws, the amount of which may vary depending on the seriousness of the violation and the degree of responsibility.
Likewise, other jurisdictions, such as the California Consumer Privacy Act (CCPA) in the United States and the Personal Information Protection and Electronic Documents Act (PIPEDA) in Canada, have implemented their own privacy laws. These regulations give individuals greater control over their personal data and grant them rights such as access, correction, and deletion of data held by organizations.
Cambridge Analytica Controversy
The Cambridge Analytica scandal, erupting in 2018, exposed egregious violations of data privacy regulations. The firm illicitly obtained personal data from millions of Facebook users through deceptive means, exploiting an app that harvested not only user data but also data from their friends without consent. This extensive data mining enabled Cambridge Analytica to build detailed profiles for targeted political advertising, including influencing the 2016 US elections and the Brexit referendum.
Their actions blatantly disregarded fundamental principles of data privacy, including informed consent and proper data usage. Furthermore, they failed to comply with regulations such as the European Union’s General Data Protection Regulation (GDPR), which mandates transparency, lawful processing, and protection of individuals’ data rights. The liabilities incurred as a result of the scandal were substantial and multifaceted. The firm faced legal consequences for violating data privacy regulations, including fines and penalties for non-compliance with laws such as the European Union’s General Data Protection Regulation (GDPR) and other national data protection laws. Additionally, Cambridge Analytica faced reputational damage and loss of trust from the public and business partners, leading to a significant decline in its client base and eventual closure of the company.
The big scandal of Cambridge Analytica reminds us of how there can be serious consequences if personal data is not dealt with carefully and highlights the significance of ensuring strong data protection procedures. To ensure compliance and mitigate risks, companies engaging in such transfers should consider the following recommendations:
- Conduct comprehensive risk assessments before initiating any data transfer to identify potential legal, financial, and reputational risks.
- Obtain explicit consent from data subjects before transferring their personal data to third parties abroad.
- Ensure that the destination country provides an adequate level of protection for personal data, in accordance with relevant data protection laws and regulations. Make sure to obtain the consent of the respective authorized body in case the destination country does not have an adequate level of protection.
- Comply with international agreements governing data transfer to establish legal mechanisms for transferring personal data across borders. Ensure that clear contractual agreements with third-party recipients are established, whereby, their obligations to protect personal data are outlined.
- Implement robust data protection policies and procedures to safeguard personal data during international transfers, including encryption, access controls, and regular security audits.
Retrieve Legal & Tax provides tailored legal counsel, ensuring seamless compliance with data protection laws during international transfers. Trust us to safeguard your business interests while upholding regulatory standards.