BCR for processors get EU regulators’ vital endorsement

Posted on May 1st, 2013 by



The fact that with everything that is going on in the world of data protection right now, the Article 29 Working Party has devoted a thorough 19 page explanatory document to clarifying and endorsing the role of BCR for Processors or “Binding Safe Processor Rules” is very telling. It is nearly 10 years since BCR was conceived and whilst the approval process is not precisely a walk in the park, much has been achieved in terms of its status, simplification and even international recognition. However, the idea of applying the same approach to an international group of vendors or to cloud service providers is still quite novel.

The prospect of the forthcoming EU data protection framework specifically recognising both flavours of BCR is obviously encouraging but right now, the support provided by the Working Party is invaluable. The benefits of BSPR are well documented – easier contractual arrangements for customers and suppliers, one stop shop in terms of data transfers compliance for cloud customers, no need for cumbersome model clauses… It sounds like a much needed panacea to overcome the tough EU restrictions on international data transfers affecting global outsourcing and data processing operations. But as in the early days of the traditional BCR, potential suitors need to know that the idea is workable and regulators will value the efforts made to achieve safe processor status.

Those who were already familiar with the previous opinions by the Working Party on BSPR – in particular WP195 – will not find the content of the new opinion particularly surprising. However, there are very useful and reassuring pointers in there, as highlighted by the following key statements and clarifications:

*    The outsourcing industry has been constant in its request for a new legal instrument that would allow for a global approach to data protection in the outsourcing business and officially recognise internal rules organisations may have implemented.

*    That kind of legal instrument would provide an efficient way to frame massive transfers made by a processor to subprocessors which part of the same organisation acting on behalf and under the instructions of a controller.

*    BCR for processors should be understood as adequate safeguards provided by the processor to the controller allowing the latter to comply with applicable EU data protection law.

*    However, BCR for processors do not aim to shift controllers’ duties to processors.

*    A processor’s organisation that have implemented BCR for processors will not need to sign contracts to frame transfers with each of the sub-processors part of its organisation as BCR for processors adduce safeguards to data transferred and processed on behalf and under the instructions of a controller.

*    BCR for processors already “approved” at EU level will be referred by the controller as the appropriate safeguards proposed for the international transfers.

*    Updates to the BCR for processors or to the list of the members of the BCR are possible without having to re-apply before the data protection authorities.

So in summary, and despite the detailed requirements that must be met, the overall approach of the Working Party is very “can do” and pragmatic. To finish things off in a collaborative manner, the Working Party points out at the end of the document that further input from interested circles and experts on the basis of the experience obtained will be welcomed. Keep it up!