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January 24, 2024

IAPP Global Legislative Predictions 2024 – Thailand

International Association of Privacy Professionals

Thailand’s Personal Data Protection Act came into full effect on 1 June 2022 and various subordinate regulations have since been issued by the Personal Data Protection Committee. These include regulations on security measures to be implemented by data controllers, data breach notification requirements, a mandatory obligation to appoint a data protection officer when the processing activity requires regular monitoring of personal data or a system due to the large scale of personal data, administrative measures and data processors’ record of processing activities.

As some areas under the PDPA still require further clarifications, a series of public consultations for the remaining draft subordinate regulations is anticipated in 2024. Potential areas include data protection impact assessments and cross-border transfers of personal data, which are crucial for organizations and particularly for entities with establishments in other jurisdictions.

PDPA enforcement by Thai regulators was silent until the last quarter of 2023, when the PDPC published details about complaints that have been lodged to the Expert Committee. The committee is designated by virtue of the PDPA and has the power to make determinations related to imposing administrative fines and other penalties. Enforcement in 2024 is expected to become more active and potentially more serious, which means organizations should pay closer attention to ensure compliance with the PDPA.

Similar to the GDPR, the PDPA also has extraterritorial effect. Once the subordinate regulation on international cooperation has been issued by the PDPC, this should clarify how PDPA enforcement against organizations located outside of Thailand will be conducted by Thai regulators.

With respect to sector-specific data protection legislation, in September 2023, Thailand’s National Broadcasting and Telecommunications Commission issued the Notification of the NBTC Re: Measures to Protect Telecommunications Service Users’ Rights in regard to Personal Data, Privacy Rights, and Freedom of Telecommunications, which replaces the previous notification. The notification aims to enhance the protection of personal data and privacy rights for telecommunication users and to align its data protection requirements with the provisions of the PDPA. The development of specific data protection laws for other sectors is still silent.

 

Athistha (Nop) Chitranukroh and Gvavalin Mahakunkitchareon provided this update as part of the “IAPP Global Legislative Predictions 2024” from the International Association of Privacy Professionals. Tilleke & Gibbins also provided the Vietnam update.

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March 27, 2024
Two notifications on the cross-border transfer of personal data, issued by Thailand’s Personal Data Protection Committee (PDPC), came into effect on March 24, 2024. These notifications, which we detailed in a previous update, set out the criteria governing the cross-border transfer of personal data offshore, specifically focusing on situations where appropriate personal data protection standards are in place. Of particular importance is the role of binding corporate rules (BCRs) in enabling the cross-border transfer of personal data among affiliated businesses or within the same group of undertakings. The implementation of BCRs requires a comprehensive review and approval process by the Office of the PDPC, strictly in accordance with the criteria set out in one of the two notifications. With the notifications now fully enforceable, the Office of the PDPC has begun accepting BCRs for review. Data controllers and data processors intending to adopt BCRs as a means for transferring data to offshore affiliates or group companies must initiate the BCR submission process promptly. Failure to comply with PDPA requirements concerning the cross-border transfer of personal data could result in substantial penalties. Organizations involved in cross-border personal data transfers should be proactive in complying with the prescribed criteria to avoid these regulatory penalties and maintain the data protection standards mandated by the PDPA. For more information on these cross-border personal data transfer regulations, or on any aspect of complying with Thailand’s data protection laws, please contact Nopparat Lalitkomon at [email protected], Gvavalin Mahakunkitchareon at [email protected], or Wilin Somya at [email protected].
March 27, 2024
The Bank of Thailand (BOT) has opened a public comment period on their consultation paper titled “Criteria for Supervising Virtual Banks” from March 19, 2024, to April 17, 2024. The consultation paper reveals that the BOT intends to apply traditional commercial bank supervisory standards to virtual banks. However, the BOT also explains that the wholly digital nature of the services offered by virtual banks necessitates additional regulatory supervision. Additional Supervisory Criteria for Virtual Banks Financial business group: If a virtual bank is within the same financial business group as other financial institutions, its parent company must structure the virtual bank to be under its own sole consolidated financial business group. After the virtual bank has undergone the “restricted phase” in its initial years of operation (see below), other financial institutions within the group are prohibited from extending credit to or engaging in transactions similar to lending activities with the virtual bank. Shareholding structure: If the increase in the financial institution system capital is higher than the actual capital injection resulting from the bank’s shareholding structure, the BOT aims to issue an additional regulation to supervise the capital of the virtual bank and financial institution system to prevent double counting. Operational risk: Virtual banks must not use a trademark or logo that bears resemblance to or implies association with other financial institutions or financial institution groups. Governance: Virtual banks must have at least one director and chief technology officer (CTO) with at least three years of experience in IT or digital service. Additionally, the CTO must work full-time for the virtual bank and may not be an employee of another legal entity. Restriction on related lending and related-party transactions: Virtual banks must obtain prior unanimous approval from their boards of directors before engaging in transactions with major shareholders or businesses
March 27, 2024
Last year, the government of Vietnam issued the Personal Data Protection Decree (PDPD), which took effect on July 1, 2023. The Department of Cybersecurity and High-Tech Crime Prevention and Control (referred to as “A05”) under the Ministry of Public Security (MPS) is tasked with implementing and enforcing the requirements under the PDPD. While a decree on sanctioning provisions for noncompliance with the PDPD is still pending issuance, further movements from the MPS/A05 indicate that it aims to start conducting its first inspections into PDPD compliance. This is the first time that companies and government agencies have been officially questioned by the MPS about their compliance with the PDPD. The purposes of this inspection program are (1) to evaluate the compliance status of a group of selected companies and government agencies and to understand challenges in complying with the PDPD requirements; (2) to propose sanctions for noncompliance; and (3) to collect information and comments for the development of the upcoming Personal Data Protection Law—not to spot noncompliance with the PDPD specifically. This round of inspection includes a number of companies in 14 sectors (including e-commerce, aviation, telecom, banking and finance, intermediary payment, insurance, gaming, education, healthcare, real estate, data processing services, ride hailing, etc.). The companies targeted by this inspection program must: (1) submit a report on compliance to the MPS/A05 by May 30, 2024 (this report is different from the data protection impact assessment (DPIA)/transfer impact assessment (TIA) submission requirements); and (2) coordinate with the MPS/A05 on any further investigation actions from June to August 2024. The inspection results will be available by September 2024. Key information to be reported includes, among others: (1) a description of the activities and measures carried out to implement the PDPD (such as protecting data subjects’ rights, performing administrative procedures, preventing violations, etc.)
March 18, 2024
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