INTL-05

Do you comply with PIPL security, privacy, and data localization requirements?

Explanation

This question is asking whether your organization complies with the Personal Information Protection Law (PIPL) of China, which went into effect on November 1, 2021. PIPL is China's comprehensive data privacy law that regulates how organizations collect, store, use, process, transfer, and disclose personal information of individuals in China. Specifically, the question focuses on three key aspects of PIPL compliance: 1. Security requirements: Implementing appropriate technical and organizational measures to protect personal information from unauthorized access, disclosure, alteration, or loss. 2. Privacy requirements: Ensuring lawful processing, obtaining proper consent, respecting data subject rights, and maintaining transparency in data handling practices. 3. Data localization requirements: PIPL mandates that personal information collected or generated in China must be stored within China's borders, with strict conditions for cross-border transfers. Chapter 5 of PIPL (referenced in the guidance) specifically addresses the obligations for cross-border provision of personal information, including requirements for security assessments, certification, and standard contractual clauses. This question is being asked in a security assessment because: - Organizations handling data of Chinese residents must comply with PIPL or face significant penalties (up to 50 million yuan or 5% of annual revenue) - Non-compliance creates legal, financial, and reputational risks - Assessors need to understand if your systems and processes adequately address international privacy requirements - Data localization requirements may impact your technical architecture and operations To best answer this question, you should: 1. Clearly state whether you comply with PIPL requirements 2. Provide specific details about your compliance measures for security, privacy, and data localization 3. Reference any formal assessments, certifications, or legal reviews of your PIPL compliance 4. If you don't process data of Chinese residents, explain why PIPL doesn't apply to you 5. If you're working toward compliance but aren't fully compliant, be transparent about your roadmap

Guidance

See PIPL Chapter 5 for requirements.

Example Responses

Example Response 1

Yes, our organization fully complies with PIPL security, privacy, and data localization requirements We maintain dedicated servers in our Shanghai data center for all personal information collected from individuals in China, ensuring compliance with data localization requirements Our security measures include encryption of personal information both in transit and at rest, access controls based on least privilege principles, and regular security assessments conducted by third-party auditors For privacy compliance, we have implemented comprehensive consent mechanisms, privacy notices in Mandarin, and processes for honoring data subject rights We've conducted a formal PIPL gap assessment with a specialized law firm in 2022 and remediated all identified issues Our cross-border data transfers are conducted only after completing the required security assessments with the Cyberspace Administration of China (CAC) and implementing standard contractual clauses as required by Article 38 of PIPL.

Example Response 2

Yes, we comply with PIPL requirements, though we have a limited footprint in China Since we only collect basic contact information from Chinese customers (no sensitive personal information), we've implemented a tailored compliance approach For data localization, we partner with a Chinese cloud provider (Alibaba Cloud) who acts as our local data processor, ensuring all Chinese personal information remains within China's borders For security, we've implemented role-based access controls, encryption, and audit logging specific to this data environment Our privacy compliance includes China-specific privacy notices, consent mechanisms, and data subject rights procedures We've documented our PIPL compliance through a formal Data Protection Impact Assessment (DPIA) reviewed by our legal team and external counsel with PIPL expertise We do not transfer personal information of Chinese residents outside of China, avoiding the need for cross-border transfer mechanisms.

Example Response 3

No, we currently do not fully comply with PIPL security, privacy, and data localization requirements While we have robust global security practices including encryption, access controls, and regular security testing, we have not yet implemented China-specific data localization Currently, all our customer data is processed and stored in AWS data centers in the US and EU We have identified this gap in our compliance program and have developed a remediation roadmap with the following timeline: (1) Q3 2023: Complete PIPL impact assessment; (2) Q4 2023: Contract with Chinese data center provider; (3) Q1 2024: Implement technical architecture for data localization; (4) Q2 2024: Complete PIPL compliance implementation including updated privacy notices, consent mechanisms, and cross-border transfer mechanisms as needed In the interim, we are limiting our collection of personal information from Chinese residents to only what is absolutely necessary for our services.

Context

Tab
Privacy
Category
International Privacy

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Neil Cameron