The Dubai Financial Center issues the first accreditation decision on the California Consumer Privacy Act

August 10th

 

The Data Protection Commissioner of the Dubai International Financial Center (DIFC) has issued a first-of-its-kind approval decision on the California Consumer Privacy Act of 2018, a stand-alone data protection law that was amended by the Privacy Rights Act of 2020 (CPRA) which entered into force on January 1, 2023 (knowledge Together as the “California Consumer Privacy Act Amendment”).

The decision confirms the compatibility between the amended version of the law and the Dubai International Financial Center Data Protection Law No. 5 of 2020 (Data Protection Law of 2020).

 

This decision, which is in line with the Dubai International Financial Center’s commitment to enhance privacy and data protection through familiarity with best practices related to cross-border enforcement procedures, facilitates the process of transferring personal data between the center and entities located in California in accordance with the Dubai International Financial Center Data Protection Law of 2020, without The need to apply additional contractual measures.

 

The decision also allows the Dubai International Financial Center to set a precedent, the first of its kind, paving the way for building similar relations with various US states.

The amended version of the Consumer Privacy Act in California gives consumers the ability to protect and control personal data collected by companies through pre-defined methods to restrict data collection and processing according to what is fair, legal and necessary, in accordance with internationally approved data protection standards, in addition to being consistent with the objectives set. By the Commissioner in the process of administering the Data Protection Act 2020.

Jacques Visser, Commissioner for Data Protection at the DIFC Authority, said: “It is important to provide additional safeguards for imported personal data based on the factors set out in the available and published accreditation protocols, in addition to the due diligence tool and the Ethical Data Management Risk Index (EDMRI) at the DIFC.” When evaluating California’s privacy laws and regulations, along with enforcement procedures and other macro factors, it is clear to us that data importers in California will handle personal data from the DIFC ethically and fairly.”

For his part, Ashkan Sultani, Executive Director of the California Privacy Agency, said: “We are honored to be recognized by the Dubai International Financial Center. California is expected to become the fourth largest economy in the world, and in fact it is a leader in privacy protection in the United States.” This decision also highlights the huge potential that will be made possible by strong consumer protection safeguards that support innovation and responsible trade.”