Cross-Border Data Transfers and International Compliance
In a globalized world, business is no longer confined to the borders of a single country. Companies use cloud services with servers abroad, transfer information to foreign partners, or process data of foreign citizens. Cross-border data transfer involves sending personal data outside Georgia, which is strictly regulated by the new "Law on Personal Data Protection." Any incorrect transfer—even sending a simple email with a client list to a foreign server—can be considered a violation if the receiving country does not ensure adequate data protection guarantees. As Georgia aligns with EU GDPR regulations, national legislation imposes special requirements on such transactions.
Our service for cross-border data transfers ensures the legality of your international operations. The service includes:
- Country Adequacy Assessment: Determining whether the recipient country is on the "safe list" (e.g., EU members) where transfers are unrestricted.
- Obtaining Permits: If the country is not on the safe list, obtaining a transfer permit from the Personal Data Protection Service.
- Contract Drafting: Drafting Data Transfer Agreements containing Standard Contractual Clauses (SCC) to ensure protection guarantees.
- Consent Form Development: Preparing specific consent texts where the data subject is informed about the risks of cross-border transfer.
- Binding Corporate Rules (BCR) Implementation: Developing internal binding rules for multinational companies for intra-group data transfers.
Practical example: A Georgian travel agency sends tourists' passport data to a hotel in a country with low data protection standards. If the agency has not obtained informed consent from the tourist or a permit from the regulator, this is a violation punishable by a substantial fine. Similarly, IT companies often use US servers (AWS, Google Cloud). Although the US is technologically advanced, its data protection legal regime differs from Europe's, requiring additional legal guarantees (e.g., considering the Data Privacy Framework).
The field is regulated by the Law of Georgia on Personal Data Protection (Chapter V). The law divides countries into two categories: those providing adequate protection guarantees (EU/EEA and countries recognized by the Personal Data Protection Service) and other countries. Transfer to "other countries" is allowed only in exceptional cases (consent, contract, permit). International conventions and GDPR principles, which Georgian courts and regulators consider, are also important.
Working with a lawyer begins with Data Mapping—identifying where and to whom information flows. The lawyer then selects the optimal legal basis for transfer. This could be including Standard Contractual Clauses (SCC) in the contract or obtaining a permit. The process ensures that the business can continue global operations without interruption.
Legal.ge offers access to lawyers with international data protection experience. Transferring data abroad is part of business, but it must be safe and legal. Avoid bureaucratic hurdles and fines with the help of our experts.
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