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The following is part of Greenberg Traurig’s ongoing series analyzing cross-border data transfers in light of the new Standard Contractual Clauses approved by the European Commission in June 2021.

Visual Implications
  • 1st SCC Module 1. Initial cross-border transfer from the EEA to the US utilizes the SCC Module 1 designed for transfers from a controller to non-EEA Controller (First SCC).
  • 2nd SCC Module 1. Pursuant to Section 8.7 of the First SCC, all subsequent onward transfers to non-adequate jurisdictions must also utilize the SCCs (appropriate module). Note that transfers to another company “in the same [non-EEA] country,” should utilize a safeguard mechanism such as the SCCs.1 Note that the parties could decide to enter into a single SCC Module 1 with Company A, Company B, and Company C as signatories.
  • Subsequent Onward Transfers from Company C. Note that if Company C makes any additional onward transfers the appropriate module of the SCCs would also need to be used.
  • Transfer Impact Assessments. Note that Section 14 of the SCCs require all parties (Company A, Company B, and Company C) to document a transfer impact assessment of United States law to determine whether any party has reason to believe that the laws and practices of the United States that apply to the personal data transferred prevent the data importer(s) from fulfilling their obligations under the SCCs.
  • Law enforcement request policy. Note that Section 15 of the SCCs require the data importers (Company B and Company C) to take specific steps in the event that they receive a request from a public authority for access to personal data.

1 See New SCC Module 1 at 8.7. The position that a transfer between companies in the same non-EEA country requires a safeguard also accords with Article 44 of the GDPR which requires that “any transfer of personal data . . . after transfer to a third country” must take place pursuant to the restrictions in Chapter V of the GDPR.