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PERSONAL DATA
PROTECTION
LAW
Kingdom of Saudi Arabia
© 2022 Tsaaro. All rights reserved.
© 2022 Tsaaro. All rights reserved.
Introduction
Scope and Application of PDPL
Structure
Provisions of PDPL
Key Considerations
Comparison with GDPR
Challenges for organisations
1
TABLE OF CONTENTS
2
3
4
5
6
7
Tsaaro | KSA Personal Data Protection Law 01
8 Conclusion
02
Privacy and data protection have emerged to be one of the
most critical issues of an era that is characterised by the
technological revolution and a paradigm shift in our
interaction with each other and the digital world in general.
Data protection is an essential element in protecting the
rights of individuals, which is intrinsically tied to the Human
Rights of Individuals. Privacy and data protection are not just
the responsibility of a nation state, but the onus to have a
robust privacy structure is the responsibility of organizations
too. Privacy and data protection constitute the core values
of efficient legislation. The challenges of data collection,
management and processing of personal data of individuals
is one that can be effectively regulated by a robust data
protection statute. Implementation and operation of a
legislation can be arduous and precarious ordeal, but once
in action it becomes the bedrock for a regimented and
vigorous privacy protecting statute.
In this White Paper we will enumerate and elucidate the
various provisions of PDPL, the core principles of the
legislation and what challenges the legislation will pose to
businesses and organisations. In addition to the above the
European regime of data protection and privacy laws have
been the benchmark for many national legislations to
protect the rights of individuals and the pragmatic
implementation of the data protection laws in everyday
businesses. Thus, it is essential to look at the new laws by
Kingdom of Saudi Arabia in light of the General Data
Protection Regulation (GDPR). The key considerations of the
legislation, its principles and obligations will be the bedrock
for smooth implementation and functioning of the law in
Saudi Arabia.
INTRODUCTION
Tsaaro | KSA Personal Data Protection Law
The Anti-Cyber Crime Law of 2007 (Royal Decree No. M/17),
The E-commerce Law of 2019, and other sectoral regulations
contain privacy provisions.
General rules for maintaining the privacy of personal data of users
in the telecommunications and information technology sector;
The privacy guide for assessment of risk for telecommunications
services providers and
Criteria for determining the need to carry out privacy risk
assessments.
The Personal Data Protection Law (PDPL) is designed to systematically
protect “personal data” of individuals. It was implemented by Royal
Decree M/19 of 9/2/1443H (16 September 2021) approving Resolution
No. 98 dated 7/2/1443H (14 September 2021). After a period of 180
from the date of publication, the law will come into effect on 23
March 2022., and thus data controllers would have to ensure
compliance to the law.
Vision 2030 programme in the Kingdom of Saudi Arabia brought
about significant changes in the telecommunication, media and
technology regulatory landscape. PDPL is not the first law that defines
privacy for the Kingdom of Saudi Arabia, the Basic Law of Governance
of 1992 (Royal Order No. A/91 of 1992) ('the Basic Law') defines
privacy as a right related to the dignity of an individual, guarantees
the privacy of communication, and generally prohibits surveillance
unless an exception applies.It also includes Shari'ah principles against
the invasion of privacy or disclosure of secrets.
Other acts that speak about privacy are :
These laws give regulatory powers to the National Cybersecurity
Authority and the Communications and Information Technology
Commission ('CITC') in their respective sectors. The CITC has been
responsible for publishing regulations on :
DATA PROTECTION AND
KINGDOM OF SAUDI ARABIA
03 02
Tsaaro | KSA Personal Data Protection Law
Once PDPL is implemented it will become imperative for entities/
organisations to comply with the personal data protection laws, by
appointing a representative in the Kingdom. This provision has to be
complied with within 5 years from the effective date of
implementation of the law. Saudi Data & Artificial Intelligence
Authority (“SDAIA”) will be coordinating with the Central bank and
other Information Technology ministries for the implementation of
PDPL.Though, the supervisory role will be handed over National Data
Management Authority (“NDMO”) an authority under SDAIA.
Any processing by business or public entities of personal data of
citizens of Saudi Arabia by any means, including processing of
personal data of the residents of Saudi Arabia outside, including
where the businesses have a foreign data controller, it is required by
law to have a representative appointed and licensed by SDAIA in
order to perform the data controller obligations under the law.
In an age where data has become or is to become the most valuable
commodity, the need for a robust data protection regime becomes
imperative. Countries around the world have realised the importance
of such a regime not only to protect the rights of its citizens, but also
to showcase its economic prowess. Most countries in the middle east
are realising the need for data protection and laws that prevent illegal
personal data processing. The Kingdom of Saudi Arabia has taken a
step towards establishing a comprehensive data protection
mechanism for its citizens and cross border data processing
DATA PROTECTION AND
KINGDOM OF SAUDI ARABIA
04 02
Tsaaro | KSA Personal Data Protection Law
AIM OF PDPL
Privacy of personal data of residents of Saudi Arabia
Streamline various sector-specific privacy laws under one single
statute
Regulate data sharing
Prevent the abuse of personal data
Develop digital Infrastructure
Support innovation to grow a digital economy
Place Saudi Arabia aligned with the international standards
The PDPL bill aims to encapsulate the following:
SCOPE AND APPLICATION OF
PDPL
Article 1(4) oF "PDPL" defines “personal data”- as:
"any information, in whatever form, through which a person may be
directly or indirectly identified. This expressly includes an individual’s
name, identification number, addresses and contact numbers,
photographs and video recordings of the person.”
Thus, the legislation makes it clear for appointment of a controller in
Kingdom of Saudi Arabia for processing of personal data of
individuals who are citizens of the country, irrespective of where the
business operates or where there is a foreign data controller.
Article 2(2) of PDPL states that PDPL is not applicable for processing of
personal data for family matters.
01
05
Tsaaro | KSA Personal Data Protection Law
STRUCTURE
Below enumerated are the topics that will be covered by this
white paper taking into consideration the problem statement:-
Preliminary Questions
#
Applicability of the PDPL law and what is
needed for processing of personal data?
What are the key considerations in PDPL?
What are the core principles of PDPL ?
Can cross border transfers take place under
PDPL?
what are the obligations of a controller under
the law?
What are the rights of data subjects under
PDPL?
Who will be accountable for data breach and
will they be penalized?
How is PDPL different from GDPR?
What are the challenges that an organization
will face when complying with PDPL?
What are the future expectations from PDPL?
06
Tsaaro | KSA Personal Data Protection Law
Definite interest
In accordance with another law or implementation
of a pre-existing agreement
The controller is a public entity and processing is
essential to meet security requirements
Primary legal basis for processing to be obtained in
writing, subject to further requirements. Processing
without consent is only applicable under the following
conditions:
PROVISIONS OF PDPL
This section will elucidate various provisions in PDPL that are
established to preserve the privacy of individuals
Does not adversely affect the national security of
the kingdom
Guarantees are provided to safeguard the data
transferred or disclosed
Only limited, necessary data is transferred
Consent of the SDAIA has been obtained in
respect of the transfer/disclosure
Transfers of data outside of the Kingdom of Saudi
Arabia may be made for limited purposes. Even if the
transfer falls into a permitted category, it should
further align with the following conditions for cross
border transfer of data to take place lawfully'.
07
CONSENT
1
CROSS BORDER TRANSFERS
2
Tsaaro | KSA Personal Data Protection Law
PENALTIES
5
Fines of up to SAR 3m for disclosure or publication of sensitive
data in breach of PDPL.
Up to SAR 1m for breaches of data transfer rules,
Offenders under the PDPL can be criminally prosecuted for a
prison term not exceeding 2 years where sensitive data is
disclosed or published contrary to the PDPL.
General fine of SAR 5m for any violation of the PDPL.
Right to be informed
Right to access
Right to rectification
Right to destruction
Rights of the Data Subjects have been enumerated, inclusive of;
08
Controller must adopt a data privacy policy, and the policy should
be available to individuals to view before collecting their data.
If the Controller is collecting data directly from the data owner, it
must inform him or her of: a) the legal basis for collecting data b)
the purpose of collecting data, c) the information of those who
collect it, d) informing the data subjects and e) decision of cross
border transfer of data
Data controllers must prepare, maintain and register data
processing activities with SDAIA.
In case of a breach incident, it has to be notified ‘immediately’ to
the SDAIA and data subjects.)
Controllers must appoint or assign at least one of their employees
to be responsible for achieving compliance with the Law.
Controllers must conduct an evaluation of the effects of processing
associated with any product or service provided to the public, in
accordance with the requirements of the Regulations.
OBLIGATIONS OF CONTROLLERS
3
DATA SUBJECT RIGHTS
4
Tsaaro | KSA Personal Data Protection Law
The key considerations of the data protection legislation are
listed below:
KEY CONSIDERATIONS IN
PDPL
01
ACCOUNTABILITY
The data controller when processing personal data, should have
measures that abide by the provisions of law that is in place and do
regular checks so that the means of processing data is approved by
PDPL principles (Article 8)
01
01
PURPOSE LIMITATION
The collection of personal data should have a direct link to the
controller's purpose to process it. The purpose should be specific
and limited to only what is required to satisfy the purpose (Article
11, 11(2), 11(3))
02
02
TRANSPARENCY
A privacy policy must be in place that can be viewed by the data
subjects before collection of their personal data setting the
purposes for collection, the categories of personal data collected,
the means of collection, means of storage, processing, erasure, as
well as data subject rights and how to exercise them. ( Article 12)
03
03
ACCURACY
Data should be up to date, complete, and specific to the purpose
for which it was collected ( Article 14 )
The Data Subjects had Right to erasure which the controller has to
abide by. (Article 18, exceptions to right to erasure under Article
18(2))
04
04
09
Tsaaro | KSA Personal Data Protection Law
01
1974
APPOINTMENT OF DATA
PROTECTION OFFICER
Controllers are required to appoint a person (or several persons) to
be responsible for implementing PDPL. A local representative
should be appointed for controllers that operate outside the
Kingdom and process personal data of Saudi Citizens. This is done
for compliance of the applicable laws. the applicable laws (Article
33(2) of the PDPL).
05
05
RECORDS OF PROCESSING
ACTIVITY
The organisation/ company needs to keep records of processing
activities for a time period determined by executive regulations
(Article 31). The competent authority will establish an online portal
to build a national database of controllers, to which each controller
must register to and pay an annual fee not exceeding SAR 100,000 (
Article 32)
06
06
DATA PROTECTION IMPACT
ASSESSMENT
The organisation/ company needs to keep records of processing
activities for a time period determined by executive regulations
(Article 31). The competent authority will establish an online portal
to build a national database of controllers, to which each controller
must register to and pay an annual fee not exceeding SAR 100,000
(Article 32)
07
07
10
KEY CONSIDERATIONS IN
PDPL
Tsaaro | KSA Personal Data Protection Law
The key considerations of the data protection legislation are
enumerated below:
KEY CONSIDERATIONS IN
PDPL
Deceased
Person
PDPL also applies to the data
of deceased persons if it can
lead to the specific
identification of the deceased
person or his or her family.
‘Deceased persons’ included
in the definition of data
subjects.
Recital 27 confirms that the GDPR does
not apply to the personal data of
deceased persons – only natural living
persons.
(Art 4(1), Rec. 27)
The term is defined in Art. 4 (12).
Personal data breach is "breach of
security leading to the accidental or
unlawful destruction, loss, alteration,
unauthorised disclosure of, or access to,
personal data transmitted, stored or
otherwise processed"
Personal Data
Breach
Any element of data, alone or
in connection with other
available data, that would
enable the identification of a
Saudi citizen.
Comparison between the
Personal Data Protection Law
and The General Data
Protection Regulation
11
Category GDPR
PDPL
Breach
Notifications
Breach must be notified
“immediately” rather than
within a specified period.
Under Article 33 of GDPR, controller
must notify the supervisory authority
within 72 hours of being aware of the
breach.
Caveat to
Disclosure of
personal data
There is a caveat to the usual
permitted disclosures of
personal data by the
controller if the disclosure
could pose a security risk,
damage the reputation of the
Kingdom or impact Saudi
Arabia’s relationship with
other countries.
Under Article 49 of GDPR states that
personal data shall be transferred to a
third country or international
organization with an adequate
protection level as determined by the
EU Commission.
Suppose there is no decision on an
adequate protection level. In that case,
a transfer is only permitted when the
data controller or data processor
provides appropriate safeguards that
ensure data subject rights.
Tsaaro | KSA Personal Data Protection Law
12
Caveat to
Disclosure of
personal data
There is a caveat to the usual
permitted disclosures of
personal data by the
controller if the disclosure
could pose a security risk,
damage the reputation of the
Kingdom or impact Saudi
Arabia’s relationship with
other countries.
Appropriate safeguards include:
BCRs with specific requirements (e.g., a
legal basis for processing, a retention
period, and complaint procedures)
Standard data protection clauses
adopted by the EU Commission or by a
supervisory authority
An approved code of conduct or an
approved certification mechanism.
(Articles: 44-50,
Recitals: 101, 112, Chapter V)
Category GDPR
PDPL
Cross Boarder
Transfer
Controllers will not be able to
transfer personal data outside
Saudi Arabia unless required
to comply with an agreement
to which the Kingdom is a
party, (this is to serve Saudi
interests or for other purposes
that will be set out in the
executive regulations).
There are requirements to
ensure that the data transfer
or disclosure to a party
outside the Kingdom does not
impact national security or
Saudi interests and to obtain
the approval of SDAIA ie. Saudi
Data & Artificial Intelligence
Authority.
GDPR states that personal data shall be
transferred to a third country or
international organization with an
adequate protection level as
determined by the EU Commission.
In a case of no adequate protection
level transfer is only permitted when
the data controller or data processor
provides appropriate safeguards that
ensure data subject rights.
Appropriate safeguards include:
BCRs with specific requirements (e.g., a
legal basis for processing, a retention
period, and complaint procedures)
Standard data protection clauses
adopted by the EU Commission or by a
supervisory authority
An approved code of conduct; or
An approved certification mechanism.
(Articles: 44-50,
Recitals: 101, 112, Chapter V)
Registration
and RoPA
Data Controllers must
register with SDAIA. There will
be a fixed fee for private
entities that are data
controllers, which is yet to be
published in the Regulations.
Records of Processing Activity
(RoPA) must also registered
with SDAIA.
Article 30 of GDPR requires to have a
record of processing activities. On
demand of the authority the data
controller or the data processor
provides the record of processing
activities. But there is no obligation
under GDPR to notify about RoPA or
register data controllers with the data
protection authority .
Tsaaro | KSA Personal Data Protection Law
13
Category GDPR
PDPL
Registration
Official
documents
must not be
photocopied
It is a common practice in the
region for official documents
such as passports or ID cards to
be photocopied. The PDPL
prohibits this unless it is for the
implementation of the
provisions of a law, or if a
competent public authority
requests these, in accordance
with the PDPL regulations.
No such condition laid down.
No “directing
services” or
“monitoring”
test for foreign
business
PDPL applies to any entity
located outside of KSA who is
processing the personal data of
individuals residing in KSA. No
particular quantitative threshold
or qualitative tests are set out.
Authority.
Only applies to non-EU established
entities who are engaged in targeting,
offering goods or services to or
monitoring EU individuals.
Exceptions to
Consent
achieves a definite or certain
interest for the data owner
and it is impossible or
difficult to contact them;
As required by law or in
application of a prior
agreement to which the
data owner is a party]; or
Is done by a public entity
and such processing is
required for security
purposes or to meet judicial
requirements
Data owner consent is not
required where the processing:
Processing is necessary to satisfy a
contract to which the data subject is
a party:
You need to process the data to
comply with a legal obligation.
You need to process the data to
save somebody’s life.
Processing is necessary to perform
a task in the public interest or to
carry out some official function.
You have a legitimate interest to
process someone’s personal data.
(Art. 6)
GDPR does not explicitly mention
exceptions to consent to process
personal data of individuals, rather it
states the lawful basis for processing of
personal data of individuals other than
consent. Following are the lawful basis
for processing of personal data of
individuals :
Tsaaro | KSA Personal Data Protection Law
14
Category GDPR
PDPL
Need to obtain
a license or
appoint
licensed
representative
Article 33 of the PDPL provides
that the Authority shall be
responsible for issuing licenses
to commercial, professional or
non-profit businesses under the
PDPL, however it does not
expressly state what, if any,
additional licenses a business
will need to obtain in order to
process personal data.
Non-KSA based data processing
entities which process personal
data related to individuals
residing in KSA will have to
appoint a representative in KSA,
licensed by the Authority, to
carry out its obligations under
the law.
Similar to the requirement under GDPR
for non-European established
businesses which are subject to GDPR
to appoint a representative in the
union.
Data
protection
Officer
The Entity shall identify and
appoint a Chief Data Officer to
lead the Data Management and
Personal Data Protection
agenda. The Chief Data Officer's
(CDO) responsibilities shall be
highlighted in a job description
and aligned with the
responsibilities defined in the
“Organizational Manual”
published by NDMO.
Appoint a DPO (Article 37) and a
representative under certain
conditions.
Under Article 4(21) of GDPR: "
‘representative’ means a natural or
legal person established in the Union
who, designated by the controller or
processor in writing pursuant to Article
27, represents the controller or
processor with regard to their
respective obligations under this
Regulation"
Penalties Fines of up to SAR 3m (approx.
GBP 590,000) for disclosure or
publication of sensitive data in
breach of PDPL
-up to SAR 1m (approx. GBP
200,000) for breaches of data
transfer rules,
-Offenders under the PDPL can
be criminally prosecuted for a
prison term not exceeding 2
years where sensitive data is
disclosed or published contrary
to the PDPL.
-General fine of SAR 5m
(approx. GBP 1,000,000) for any
violation of the PDPL.
GDPR has an upper cap on its monetary
penalties, either: 2% of global annual
turnover or €10 million, whichever is
higher, or 4% of global annual turnover
or €20 million, whichever is higher. This
depends on the level of violation, which
is decided by the member states and
public authorities.
(Articles: 83, 84
Recitals: 158, 149)
Tsaaro | KSA Personal Data Protection Law
CHALLENGES FOR ORGANISATIONS
15
Compliance of data sovereignty
regulations in cross boarder transfer of
data
Compliance with sever other sectorial
stakeholders and regulations (Eg. CITC,
SAMA)
Operationalization and classification of
data to mitigate any identified data
sovereignty risks
The concepts of privacy and data
protection have to be embedded in the
approach of an organization
Vendor management
Compliance with international
standardizations
Establishing robust Cybersecurity and
Privacy management
Tsaaro | KSA Personal Data Protection Law
CONCLUSION
The vision behind PDPL is commendable and will usher
in more countries to establish a data protection and
privacy regime. The Kingdom has long-term goals to
facilitate an emerging data driven economy. In the
coming months there will further details and guidance
on the law and its implementation. The business models
that are set up in the Kingdom will have to ensure
compliance and work towards establishing a privacy
aware and protecting mechanism in functioning of their
organisations.
In addition to establishing a data protection law that
protects the rights of individuals it is essential to
understand the challenges that an organisation/
company will face in an effort to accelerate the drive
towards an information based society. The
organisations/ companies have to take into
consideration compliance audit, gap analysis,
governance, training and development, and compliance
programme so that they are not in breach of PDPL.
In conclusion the steps taken by Kingdom of Saudi
Arabia is a welcome change which aligns the need of a
robust privacy and data mechanism around the world.
This will only lead to strengthening the basic Human
Rights of Individuals. The kingdom of Saudi Arabia has
paved the way for many other middle - eastern countries
to move towards providing a system where personal
data of individuals is of primary importance and
protection of it is essential.
16
Tsaaro | KSA Personal Data Protection Law
Tsaaro Netherlands Office
Regus Schiphol Rijk
Beech Avenue 54-62,
Het Poortgebouw,
Amsterdam, 1119 PW,
Netherlands
P: +31-686053719
Akarsh Singh
(CEO & Co-Founder, Tsaaro)
Akarsh is a fellow in Information Privacy by
IAPP, the highest certification in the field of
privacy. His expertise lies in Data Privacy and
Information Security Compliance.
Tsaaro provides privacy and cybersecurity services to help organizations meet regulatory
requirements while maintaining a robust security infrastructure.
Our industry-standard privacy services include Privacy compliance, DPO-as-a-service,
Vulnerability Assessment & Penetration Testing, Cyber Strategy, DPIA to name a few,
delivered by our expert privacy professionals recognized by IAPP.
WHY TSAARO?
CONTACT US
You can assess risk with respect to
personal data and strengthen your
data security by contacting Tsaaro.
Email us
info@tsaaro.com
Tsaaro India Office
Manyata Embassy Business
Park, Ground Floor, E1 Block,
Beech Building, Outer
RingRoad,
Bangalore- 560045
India
P: +91-0522–3581
Krishna Srivastava
(Co-Founder & Head of Cyber Security,
Tsaaro)
Krishna is a xKPMG data security consultant.
He has vast experience in Information
Security and Data Privacy Compliance.
Srishti Tripathy
(Senior Data Protection Consultant,
Tsaaro)
Srishti is a privacy professional with a
Masters degree from Tilburg University in
Law and Technology.
Reviewer
Anselmo Diaz Valiente
(Senior Consultant|NCC Group)
Anselmo is an experienced consultant
involved in a variety of projects, requiring the
application of expert knowledge in
Information Security and Data Protection.
Ample of experience in auditing and
providing consultancy to organisations
across diverse sectors.
Our Team

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KSA PDPL - Personal Data Protection Law.pdf

  • 1. PERSONAL DATA PROTECTION LAW Kingdom of Saudi Arabia © 2022 Tsaaro. All rights reserved. © 2022 Tsaaro. All rights reserved.
  • 2. Introduction Scope and Application of PDPL Structure Provisions of PDPL Key Considerations Comparison with GDPR Challenges for organisations 1 TABLE OF CONTENTS 2 3 4 5 6 7 Tsaaro | KSA Personal Data Protection Law 01 8 Conclusion
  • 3. 02 Privacy and data protection have emerged to be one of the most critical issues of an era that is characterised by the technological revolution and a paradigm shift in our interaction with each other and the digital world in general. Data protection is an essential element in protecting the rights of individuals, which is intrinsically tied to the Human Rights of Individuals. Privacy and data protection are not just the responsibility of a nation state, but the onus to have a robust privacy structure is the responsibility of organizations too. Privacy and data protection constitute the core values of efficient legislation. The challenges of data collection, management and processing of personal data of individuals is one that can be effectively regulated by a robust data protection statute. Implementation and operation of a legislation can be arduous and precarious ordeal, but once in action it becomes the bedrock for a regimented and vigorous privacy protecting statute. In this White Paper we will enumerate and elucidate the various provisions of PDPL, the core principles of the legislation and what challenges the legislation will pose to businesses and organisations. In addition to the above the European regime of data protection and privacy laws have been the benchmark for many national legislations to protect the rights of individuals and the pragmatic implementation of the data protection laws in everyday businesses. Thus, it is essential to look at the new laws by Kingdom of Saudi Arabia in light of the General Data Protection Regulation (GDPR). The key considerations of the legislation, its principles and obligations will be the bedrock for smooth implementation and functioning of the law in Saudi Arabia. INTRODUCTION Tsaaro | KSA Personal Data Protection Law
  • 4. The Anti-Cyber Crime Law of 2007 (Royal Decree No. M/17), The E-commerce Law of 2019, and other sectoral regulations contain privacy provisions. General rules for maintaining the privacy of personal data of users in the telecommunications and information technology sector; The privacy guide for assessment of risk for telecommunications services providers and Criteria for determining the need to carry out privacy risk assessments. The Personal Data Protection Law (PDPL) is designed to systematically protect “personal data” of individuals. It was implemented by Royal Decree M/19 of 9/2/1443H (16 September 2021) approving Resolution No. 98 dated 7/2/1443H (14 September 2021). After a period of 180 from the date of publication, the law will come into effect on 23 March 2022., and thus data controllers would have to ensure compliance to the law. Vision 2030 programme in the Kingdom of Saudi Arabia brought about significant changes in the telecommunication, media and technology regulatory landscape. PDPL is not the first law that defines privacy for the Kingdom of Saudi Arabia, the Basic Law of Governance of 1992 (Royal Order No. A/91 of 1992) ('the Basic Law') defines privacy as a right related to the dignity of an individual, guarantees the privacy of communication, and generally prohibits surveillance unless an exception applies.It also includes Shari'ah principles against the invasion of privacy or disclosure of secrets. Other acts that speak about privacy are : These laws give regulatory powers to the National Cybersecurity Authority and the Communications and Information Technology Commission ('CITC') in their respective sectors. The CITC has been responsible for publishing regulations on : DATA PROTECTION AND KINGDOM OF SAUDI ARABIA 03 02 Tsaaro | KSA Personal Data Protection Law
  • 5. Once PDPL is implemented it will become imperative for entities/ organisations to comply with the personal data protection laws, by appointing a representative in the Kingdom. This provision has to be complied with within 5 years from the effective date of implementation of the law. Saudi Data & Artificial Intelligence Authority (“SDAIA”) will be coordinating with the Central bank and other Information Technology ministries for the implementation of PDPL.Though, the supervisory role will be handed over National Data Management Authority (“NDMO”) an authority under SDAIA. Any processing by business or public entities of personal data of citizens of Saudi Arabia by any means, including processing of personal data of the residents of Saudi Arabia outside, including where the businesses have a foreign data controller, it is required by law to have a representative appointed and licensed by SDAIA in order to perform the data controller obligations under the law. In an age where data has become or is to become the most valuable commodity, the need for a robust data protection regime becomes imperative. Countries around the world have realised the importance of such a regime not only to protect the rights of its citizens, but also to showcase its economic prowess. Most countries in the middle east are realising the need for data protection and laws that prevent illegal personal data processing. The Kingdom of Saudi Arabia has taken a step towards establishing a comprehensive data protection mechanism for its citizens and cross border data processing DATA PROTECTION AND KINGDOM OF SAUDI ARABIA 04 02 Tsaaro | KSA Personal Data Protection Law
  • 6. AIM OF PDPL Privacy of personal data of residents of Saudi Arabia Streamline various sector-specific privacy laws under one single statute Regulate data sharing Prevent the abuse of personal data Develop digital Infrastructure Support innovation to grow a digital economy Place Saudi Arabia aligned with the international standards The PDPL bill aims to encapsulate the following: SCOPE AND APPLICATION OF PDPL Article 1(4) oF "PDPL" defines “personal data”- as: "any information, in whatever form, through which a person may be directly or indirectly identified. This expressly includes an individual’s name, identification number, addresses and contact numbers, photographs and video recordings of the person.” Thus, the legislation makes it clear for appointment of a controller in Kingdom of Saudi Arabia for processing of personal data of individuals who are citizens of the country, irrespective of where the business operates or where there is a foreign data controller. Article 2(2) of PDPL states that PDPL is not applicable for processing of personal data for family matters. 01 05 Tsaaro | KSA Personal Data Protection Law
  • 7. STRUCTURE Below enumerated are the topics that will be covered by this white paper taking into consideration the problem statement:- Preliminary Questions # Applicability of the PDPL law and what is needed for processing of personal data? What are the key considerations in PDPL? What are the core principles of PDPL ? Can cross border transfers take place under PDPL? what are the obligations of a controller under the law? What are the rights of data subjects under PDPL? Who will be accountable for data breach and will they be penalized? How is PDPL different from GDPR? What are the challenges that an organization will face when complying with PDPL? What are the future expectations from PDPL? 06 Tsaaro | KSA Personal Data Protection Law
  • 8. Definite interest In accordance with another law or implementation of a pre-existing agreement The controller is a public entity and processing is essential to meet security requirements Primary legal basis for processing to be obtained in writing, subject to further requirements. Processing without consent is only applicable under the following conditions: PROVISIONS OF PDPL This section will elucidate various provisions in PDPL that are established to preserve the privacy of individuals Does not adversely affect the national security of the kingdom Guarantees are provided to safeguard the data transferred or disclosed Only limited, necessary data is transferred Consent of the SDAIA has been obtained in respect of the transfer/disclosure Transfers of data outside of the Kingdom of Saudi Arabia may be made for limited purposes. Even if the transfer falls into a permitted category, it should further align with the following conditions for cross border transfer of data to take place lawfully'. 07 CONSENT 1 CROSS BORDER TRANSFERS 2 Tsaaro | KSA Personal Data Protection Law
  • 9. PENALTIES 5 Fines of up to SAR 3m for disclosure or publication of sensitive data in breach of PDPL. Up to SAR 1m for breaches of data transfer rules, Offenders under the PDPL can be criminally prosecuted for a prison term not exceeding 2 years where sensitive data is disclosed or published contrary to the PDPL. General fine of SAR 5m for any violation of the PDPL. Right to be informed Right to access Right to rectification Right to destruction Rights of the Data Subjects have been enumerated, inclusive of; 08 Controller must adopt a data privacy policy, and the policy should be available to individuals to view before collecting their data. If the Controller is collecting data directly from the data owner, it must inform him or her of: a) the legal basis for collecting data b) the purpose of collecting data, c) the information of those who collect it, d) informing the data subjects and e) decision of cross border transfer of data Data controllers must prepare, maintain and register data processing activities with SDAIA. In case of a breach incident, it has to be notified ‘immediately’ to the SDAIA and data subjects.) Controllers must appoint or assign at least one of their employees to be responsible for achieving compliance with the Law. Controllers must conduct an evaluation of the effects of processing associated with any product or service provided to the public, in accordance with the requirements of the Regulations. OBLIGATIONS OF CONTROLLERS 3 DATA SUBJECT RIGHTS 4 Tsaaro | KSA Personal Data Protection Law
  • 10. The key considerations of the data protection legislation are listed below: KEY CONSIDERATIONS IN PDPL 01 ACCOUNTABILITY The data controller when processing personal data, should have measures that abide by the provisions of law that is in place and do regular checks so that the means of processing data is approved by PDPL principles (Article 8) 01 01 PURPOSE LIMITATION The collection of personal data should have a direct link to the controller's purpose to process it. The purpose should be specific and limited to only what is required to satisfy the purpose (Article 11, 11(2), 11(3)) 02 02 TRANSPARENCY A privacy policy must be in place that can be viewed by the data subjects before collection of their personal data setting the purposes for collection, the categories of personal data collected, the means of collection, means of storage, processing, erasure, as well as data subject rights and how to exercise them. ( Article 12) 03 03 ACCURACY Data should be up to date, complete, and specific to the purpose for which it was collected ( Article 14 ) The Data Subjects had Right to erasure which the controller has to abide by. (Article 18, exceptions to right to erasure under Article 18(2)) 04 04 09 Tsaaro | KSA Personal Data Protection Law
  • 11. 01 1974 APPOINTMENT OF DATA PROTECTION OFFICER Controllers are required to appoint a person (or several persons) to be responsible for implementing PDPL. A local representative should be appointed for controllers that operate outside the Kingdom and process personal data of Saudi Citizens. This is done for compliance of the applicable laws. the applicable laws (Article 33(2) of the PDPL). 05 05 RECORDS OF PROCESSING ACTIVITY The organisation/ company needs to keep records of processing activities for a time period determined by executive regulations (Article 31). The competent authority will establish an online portal to build a national database of controllers, to which each controller must register to and pay an annual fee not exceeding SAR 100,000 ( Article 32) 06 06 DATA PROTECTION IMPACT ASSESSMENT The organisation/ company needs to keep records of processing activities for a time period determined by executive regulations (Article 31). The competent authority will establish an online portal to build a national database of controllers, to which each controller must register to and pay an annual fee not exceeding SAR 100,000 (Article 32) 07 07 10 KEY CONSIDERATIONS IN PDPL Tsaaro | KSA Personal Data Protection Law The key considerations of the data protection legislation are enumerated below: KEY CONSIDERATIONS IN PDPL
  • 12. Deceased Person PDPL also applies to the data of deceased persons if it can lead to the specific identification of the deceased person or his or her family. ‘Deceased persons’ included in the definition of data subjects. Recital 27 confirms that the GDPR does not apply to the personal data of deceased persons – only natural living persons. (Art 4(1), Rec. 27) The term is defined in Art. 4 (12). Personal data breach is "breach of security leading to the accidental or unlawful destruction, loss, alteration, unauthorised disclosure of, or access to, personal data transmitted, stored or otherwise processed" Personal Data Breach Any element of data, alone or in connection with other available data, that would enable the identification of a Saudi citizen. Comparison between the Personal Data Protection Law and The General Data Protection Regulation 11 Category GDPR PDPL Breach Notifications Breach must be notified “immediately” rather than within a specified period. Under Article 33 of GDPR, controller must notify the supervisory authority within 72 hours of being aware of the breach. Caveat to Disclosure of personal data There is a caveat to the usual permitted disclosures of personal data by the controller if the disclosure could pose a security risk, damage the reputation of the Kingdom or impact Saudi Arabia’s relationship with other countries. Under Article 49 of GDPR states that personal data shall be transferred to a third country or international organization with an adequate protection level as determined by the EU Commission. Suppose there is no decision on an adequate protection level. In that case, a transfer is only permitted when the data controller or data processor provides appropriate safeguards that ensure data subject rights. Tsaaro | KSA Personal Data Protection Law
  • 13. 12 Caveat to Disclosure of personal data There is a caveat to the usual permitted disclosures of personal data by the controller if the disclosure could pose a security risk, damage the reputation of the Kingdom or impact Saudi Arabia’s relationship with other countries. Appropriate safeguards include: BCRs with specific requirements (e.g., a legal basis for processing, a retention period, and complaint procedures) Standard data protection clauses adopted by the EU Commission or by a supervisory authority An approved code of conduct or an approved certification mechanism. (Articles: 44-50, Recitals: 101, 112, Chapter V) Category GDPR PDPL Cross Boarder Transfer Controllers will not be able to transfer personal data outside Saudi Arabia unless required to comply with an agreement to which the Kingdom is a party, (this is to serve Saudi interests or for other purposes that will be set out in the executive regulations). There are requirements to ensure that the data transfer or disclosure to a party outside the Kingdom does not impact national security or Saudi interests and to obtain the approval of SDAIA ie. Saudi Data & Artificial Intelligence Authority. GDPR states that personal data shall be transferred to a third country or international organization with an adequate protection level as determined by the EU Commission. In a case of no adequate protection level transfer is only permitted when the data controller or data processor provides appropriate safeguards that ensure data subject rights. Appropriate safeguards include: BCRs with specific requirements (e.g., a legal basis for processing, a retention period, and complaint procedures) Standard data protection clauses adopted by the EU Commission or by a supervisory authority An approved code of conduct; or An approved certification mechanism. (Articles: 44-50, Recitals: 101, 112, Chapter V) Registration and RoPA Data Controllers must register with SDAIA. There will be a fixed fee for private entities that are data controllers, which is yet to be published in the Regulations. Records of Processing Activity (RoPA) must also registered with SDAIA. Article 30 of GDPR requires to have a record of processing activities. On demand of the authority the data controller or the data processor provides the record of processing activities. But there is no obligation under GDPR to notify about RoPA or register data controllers with the data protection authority . Tsaaro | KSA Personal Data Protection Law
  • 14. 13 Category GDPR PDPL Registration Official documents must not be photocopied It is a common practice in the region for official documents such as passports or ID cards to be photocopied. The PDPL prohibits this unless it is for the implementation of the provisions of a law, or if a competent public authority requests these, in accordance with the PDPL regulations. No such condition laid down. No “directing services” or “monitoring” test for foreign business PDPL applies to any entity located outside of KSA who is processing the personal data of individuals residing in KSA. No particular quantitative threshold or qualitative tests are set out. Authority. Only applies to non-EU established entities who are engaged in targeting, offering goods or services to or monitoring EU individuals. Exceptions to Consent achieves a definite or certain interest for the data owner and it is impossible or difficult to contact them; As required by law or in application of a prior agreement to which the data owner is a party]; or Is done by a public entity and such processing is required for security purposes or to meet judicial requirements Data owner consent is not required where the processing: Processing is necessary to satisfy a contract to which the data subject is a party: You need to process the data to comply with a legal obligation. You need to process the data to save somebody’s life. Processing is necessary to perform a task in the public interest or to carry out some official function. You have a legitimate interest to process someone’s personal data. (Art. 6) GDPR does not explicitly mention exceptions to consent to process personal data of individuals, rather it states the lawful basis for processing of personal data of individuals other than consent. Following are the lawful basis for processing of personal data of individuals : Tsaaro | KSA Personal Data Protection Law
  • 15. 14 Category GDPR PDPL Need to obtain a license or appoint licensed representative Article 33 of the PDPL provides that the Authority shall be responsible for issuing licenses to commercial, professional or non-profit businesses under the PDPL, however it does not expressly state what, if any, additional licenses a business will need to obtain in order to process personal data. Non-KSA based data processing entities which process personal data related to individuals residing in KSA will have to appoint a representative in KSA, licensed by the Authority, to carry out its obligations under the law. Similar to the requirement under GDPR for non-European established businesses which are subject to GDPR to appoint a representative in the union. Data protection Officer The Entity shall identify and appoint a Chief Data Officer to lead the Data Management and Personal Data Protection agenda. The Chief Data Officer's (CDO) responsibilities shall be highlighted in a job description and aligned with the responsibilities defined in the “Organizational Manual” published by NDMO. Appoint a DPO (Article 37) and a representative under certain conditions. Under Article 4(21) of GDPR: " ‘representative’ means a natural or legal person established in the Union who, designated by the controller or processor in writing pursuant to Article 27, represents the controller or processor with regard to their respective obligations under this Regulation" Penalties Fines of up to SAR 3m (approx. GBP 590,000) for disclosure or publication of sensitive data in breach of PDPL -up to SAR 1m (approx. GBP 200,000) for breaches of data transfer rules, -Offenders under the PDPL can be criminally prosecuted for a prison term not exceeding 2 years where sensitive data is disclosed or published contrary to the PDPL. -General fine of SAR 5m (approx. GBP 1,000,000) for any violation of the PDPL. GDPR has an upper cap on its monetary penalties, either: 2% of global annual turnover or €10 million, whichever is higher, or 4% of global annual turnover or €20 million, whichever is higher. This depends on the level of violation, which is decided by the member states and public authorities. (Articles: 83, 84 Recitals: 158, 149) Tsaaro | KSA Personal Data Protection Law
  • 16. CHALLENGES FOR ORGANISATIONS 15 Compliance of data sovereignty regulations in cross boarder transfer of data Compliance with sever other sectorial stakeholders and regulations (Eg. CITC, SAMA) Operationalization and classification of data to mitigate any identified data sovereignty risks The concepts of privacy and data protection have to be embedded in the approach of an organization Vendor management Compliance with international standardizations Establishing robust Cybersecurity and Privacy management Tsaaro | KSA Personal Data Protection Law
  • 17. CONCLUSION The vision behind PDPL is commendable and will usher in more countries to establish a data protection and privacy regime. The Kingdom has long-term goals to facilitate an emerging data driven economy. In the coming months there will further details and guidance on the law and its implementation. The business models that are set up in the Kingdom will have to ensure compliance and work towards establishing a privacy aware and protecting mechanism in functioning of their organisations. In addition to establishing a data protection law that protects the rights of individuals it is essential to understand the challenges that an organisation/ company will face in an effort to accelerate the drive towards an information based society. The organisations/ companies have to take into consideration compliance audit, gap analysis, governance, training and development, and compliance programme so that they are not in breach of PDPL. In conclusion the steps taken by Kingdom of Saudi Arabia is a welcome change which aligns the need of a robust privacy and data mechanism around the world. This will only lead to strengthening the basic Human Rights of Individuals. The kingdom of Saudi Arabia has paved the way for many other middle - eastern countries to move towards providing a system where personal data of individuals is of primary importance and protection of it is essential. 16 Tsaaro | KSA Personal Data Protection Law
  • 18. Tsaaro Netherlands Office Regus Schiphol Rijk Beech Avenue 54-62, Het Poortgebouw, Amsterdam, 1119 PW, Netherlands P: +31-686053719 Akarsh Singh (CEO & Co-Founder, Tsaaro) Akarsh is a fellow in Information Privacy by IAPP, the highest certification in the field of privacy. His expertise lies in Data Privacy and Information Security Compliance. Tsaaro provides privacy and cybersecurity services to help organizations meet regulatory requirements while maintaining a robust security infrastructure. Our industry-standard privacy services include Privacy compliance, DPO-as-a-service, Vulnerability Assessment & Penetration Testing, Cyber Strategy, DPIA to name a few, delivered by our expert privacy professionals recognized by IAPP. WHY TSAARO? CONTACT US You can assess risk with respect to personal data and strengthen your data security by contacting Tsaaro. Email us info@tsaaro.com Tsaaro India Office Manyata Embassy Business Park, Ground Floor, E1 Block, Beech Building, Outer RingRoad, Bangalore- 560045 India P: +91-0522–3581 Krishna Srivastava (Co-Founder & Head of Cyber Security, Tsaaro) Krishna is a xKPMG data security consultant. He has vast experience in Information Security and Data Privacy Compliance. Srishti Tripathy (Senior Data Protection Consultant, Tsaaro) Srishti is a privacy professional with a Masters degree from Tilburg University in Law and Technology. Reviewer Anselmo Diaz Valiente (Senior Consultant|NCC Group) Anselmo is an experienced consultant involved in a variety of projects, requiring the application of expert knowledge in Information Security and Data Protection. Ample of experience in auditing and providing consultancy to organisations across diverse sectors. Our Team