Overview

This article allows personal data transfers to third countries or international organizations without specific authorization when the European Commission has issued an adequacy decision, confirming that the recipient provides an adequate level of protection. Adequacy is assessed based on the rule of law, applicable data protection rules, independent supervisory authorities, and international commitments, with periodic reviews every four years.


Key Principles

  • Adequate Protection: Transfers are permitted if the recipient country or organization meets GDPR-level protections.

  • Automatic Authorization: No additional transfer mechanisms are required when adequacy is confirmed.

  • Periodic Review: Adequacy decisions are reviewed regularly (every four years) to ensure continued compliance.

  • Accountability: Controllers and processors must ensure transfers rely on valid adequacy decisions.

Organizational Applicability

This article applies to all organizations transferring personal data outside the EU:

  • Controllers and processors handling personal data of EU/EEA data subjects.

  • Public and private sector entities engaging with third countries or international organizations with an adequacy decision.

  • Teams responsible for cross-border data transfers, compliance, and data governance.

Implementation Requirements

  • Verify that the recipient country or organization has a valid adequacy decision from the European Commission.

  • Document reliance on the adequacy decision for transfers.

  • Maintain records of periodic reviews and any updates from the Commission.

  • Ensure internal policies reference the adequacy decision as the legal basis for transfers.

Implementation Guidance

  • Establish a registry of adequacy-approved countries and organizations.

  • Train staff involved in international transfers on adequacy decision requirements.

  • Monitor updates or changes in adequacy decisions issued by the European Commission.

  • Coordinate with legal or compliance teams to ensure adherence to adequacy rules.

Periodic Review

  • Frequency: Every four years or when the European Commission updates adequacy decisions.

  • Responsible Role: Data Protection Officer (DPO), Compliance Team, or Legal.

  • Outcome: Ensure transfers remain valid under the adequacy framework and continue to provide GDPR-level protection.

Non-Compliance Risks

  • Fines: Up to €20 million or 4% of global annual turnover for transferring data to countries without adequate protection.

  • Legal Exposure: Enforcement actions for failing to rely on valid adequacy decisions.

  • Reputational Damage: Loss of trust due to non-compliant international data transfers.

  • Operational Risk: Risk of regulatory sanctions or suspension of data flows.