Cross-Border Data Transfers under GDPR & PDPL

In today's globalized business environment, organizations routinely transfer personal data across borders—whether to cloud service providers, parent companies, or business partners. However, cross-border data transfers are heavily regulated under GDPR, UK GDPR, and Saudi Arabia's PDPL. Understanding and complying with transfer requirements is essential to avoid enforcement and maintain business continuity.

What Counts as a Transfer?

Under GDPR Chapter V, a transfer occurs when personal data is sent to, or made accessible in, a country outside the European Economic Area (EEA). This includes direct transfers, remote access from outside the EEA, and even cloud storage where data resides in non-adequate countries. UK GDPR applies similar rules to transfers from the UK.

Saudi Arabia's PDPL restricts cross-border transfers, requiring that recipient countries provide adequate protection levels or that specific safeguards are in place. Organizations must obtain SDAIA approval for transfers to non-adequate jurisdictions and maintain detailed transfer records.

Legal Mechanisms for Transfers

• Adequacy Decisions: Data may flow freely to countries recognized by regulators as providing adequate data protection (e.g., UK adequacy for EU, and vice versa; other countries may have adequacy status—verify current lists).
• Standard Contractual Clauses (SCCs): Use European Commission-approved SCCs as a contractual safeguard when transferring to non-adequate countries. SCCs must be adapted to the specific transfer (controller-to-controller, controller-to-processor, etc.) and may require supplementary measures.
• Binding Corporate Rules (BCR): For multinational organizations, BCRs offer an intra-group framework for transfers. Approval requires a complex application process and ongoing compliance with regulator expectations.
• Derogations: In limited circumstances, transfers may proceed without the above mechanisms under specific legal exceptions (e.g., explicit consent, performance of a contract, public interest). These are narrow and should not be relied upon for ongoing transfers.

The Transfer Impact Assessment (TIA)

Following the Schrems II decision, organizations must conduct Transfer Impact Assessments when using SCCs or similar mechanisms. The TIA evaluates:

• The legal framework of the destination country, particularly surveillance laws and government access powers
• Whether the SCCs (or other mechanism) will be effective in practice given local laws
• Whether supplementary measures (encryption, pseudonymization, contractual commitments) are needed
• The residual risk and whether the transfer should proceed

Practical Steps for Compliance

1. Map Your Transfers: Identify all data flows that constitute cross-border transfers, including cloud services, SaaS platforms, and vendor relationships. Document what data is transferred, to where, and under what legal basis.

2. Select Appropriate Mechanisms: Determine whether adequacy applies, or whether SCCs, BCRs, or other safeguards are required. Ensure contracts are properly executed and adapted to the specific transfer context.

3. Conduct TIAs: For transfers using SCCs or similar, complete Transfer Impact Assessments documenting the destination country risks and any supplementary measures implemented. Keep TIAs under review as circumstances change.

4. Maintain Records: Keep comprehensive records of all cross-border transfers, mechanisms used, TIAs, and any regulatory approvals obtained (especially important for PDPL transfers requiring SDAIA authorization).

5. Monitor Changes: Regularly review transfer arrangements, especially in light of regulatory developments, adequacy decisions, or changes in destination country laws that may affect the legality of ongoing transfers.

Special Considerations

Be aware that regulators are increasingly scrutinizing cross-border transfers. The European Data Protection Board (EDPB) has issued recommendations on supplementary measures, and the UK ICO has published detailed guidance. For Saudi transfers, SDAIA approval processes must be followed carefully. When in doubt, consult legal counsel or your DPO before proceeding with transfers to high-risk jurisdictions.

Conclusion

Cross-border data transfers require careful attention to legal requirements, robust documentation, and ongoing monitoring. By understanding the available mechanisms, conducting TIAs, and maintaining comprehensive records, organizations can transfer data compliantly while managing enforcement risk.