How to Comply With Personal Data Protection Regulations in Hong Kong
When data is used for business purposes, it can become a critical asset or a liability. Businesses that use data-related technologies, such as those that learn about individuals’ behaviours or process information that may impact them, must be careful to comply with the regulation governing personal data transfers. Padraig Walsh, a partner at Tanner De Witt, explains the key points to note for cross-border data transfer compliance.
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The term “data” refers to any information that has been collected about an individual, and can be in any form or medium. It can include anything from names and addresses to health records, financial details, social media profiles, and other sensitive information. Data can be in raw or summary form, and how it is processed will determine its usefulness for a specific purpose. It is important to understand how data will be used in order to determine whether it falls within the scope of personal data protection regulations and, if it does, what measures need to be put in place to protect it.
Cross-border data flows are becoming increasingly common as Hong Kong facilitates its integration into the Greater Bay Area. It is crucial for companies that rely on cross-border data transfers to be aware of the regulatory framework governing these arrangements, as well as best practice and ethical standards.
One important point to note is that the data protection regime does not contain a statutory restriction on the transfer of personal data outside of Hong Kong. Instead, the regulation focuses on protecting personal data in these circumstances through the use of contracts, and the regulation is not as stringent as that which applies in some other jurisdictions.
Another issue to be mindful of is that if a company is transferring personal data from Hong Kong to a location abroad, it is required to conduct a transfer impact assessment. This is a comprehensive review of the levels of protection in the location where the data is being transferred, and of any additional measures that must be taken to bring that level up to Hong Kong’s standards. This can involve both technical measures (such as encryption, anonymisation or pseudonymisation) and contractual provisions relating to audit, inspection and reporting, beach notification and compliance support and co-operation.
It is also worth remembering that any change in the use of personal data in line with the PICS requires the prescribed consent of the data subject. This is a less onerous requirement than would be required under GDPR, but it is nonetheless still an important step that companies need to take in order to ensure that their processing of personal data is consistent with the principles outlined in the PDPO.