Wednesday, May 14, 2014

China's Data Privacy Laws pose challenge to FCPA compliance

Multinational companies face a different challenge if they are operating in china. as per FCPA they need to do due diligence about their vendors, suppliers and need some how personal data about the principals, but on the other hand due to 13 different data privacy laws of China it becomes difficult to understand while doing due diligence if any of the laws are broken or not. while doing due diligence the companies  need to  engage a company that understands data privacy regulations, as the Chinese government closely monitors those involved in due diligence in a manner similar to its monitoring of journalists.

To reduce the risk of violations and comply with the Chinese law, multinationals borrow data privacy concepts that use an inclusive definition of personally identifiable information, including an individual's name, resident identity cards, driver's license numbers, birthplace, telephone number and birthday, and possibly more. Corporations also need to obtain the consent of individuals included in the due diligence effort and, in general, only collect information that would be available to the subjects themselves.

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