UK GDPR International Transfers: Understanding The Meaning of Data Transfers For Compliance 

Consider that your business stores customer data in the cloud, uses overseas service providers or allows remote access from abroad. In that case, you may be making an international data transfer of personal data without realising it. Many businesses send personal data outside the UK as part of daily operations, but UK GDPR imposes strict rules on these transfers. If you transfer data internationally, you must ensure compliance to avoid regulatory enforcement, reputational damage, and financial penalties. You must carefully assess your data flows, identify international transfers, and implement safeguards where necessary. However, before deciding how to transfer data, you must determine whether your business is making a restricted transfer of personal data. This article introduces what an international data transfer under UK GDPR means in practice and the key steps for compliance. 

Are You Transferring Personal Data Internationally?

Many businesses transfer personal data outside the UK without realising it. For example, if your business stores customer personal details on overseas cloud platforms or allows international suppliers to access HR records, you are making an international data transfer.

UK data protection law does not just regulate physical data transfers. 

If a third party outside the UK can access personal data stored in the UK, you have made a restricted transfer under UK GDPR. Even remote access to UK data from another country can qualify as an international data transfer if the recipient is legally separate from your organisation.

Understanding restricted transfers and their meaning is essential for ensuring UK GDPR compliance. The UK GDPR imposes strict rules when it is sent outside the UK. 

When Does a Data Transfer Become International?

Your business makes an international data transfer when you send or make personal data accessible to a recipient located outside the UK. 

Under UK GDPR, a transfer qualifies as restricted if it meets all of the following conditions:

• you process personal data that falls under UK GDPR;
• you initiate and agree to send, or make accessible personal data to a ‘receiver’ outside the UK; and
• the recipient receiver is a controller or processor who is legally separate from your business. 

If all these conditions apply, UK GDPR’s restrictions on international data transfers require you to protect the data. While these points briefly summarise the key requirements, you can consult the ICO’s guidance for full information. 

Additional rules apply if you carry out an international data ‘restricted transfer’.  We will explore these below.

Example

Some data transfers do not count as restricted transfers. For example, if data passes through another country without anyone accessing or processing it there, the UK GDPR’s transfer rules do not apply if the transfer is between UK organisations. 

Similarly, if an employee working remotely outside the UK accesses personal data, the transfer is not restricted unless the employee is legally separate from your organisation. You should seek legal advice if you are unsure whether your activities constitute a restricted transfer. 

Why Does the UK GDPR Regulate International Data Transfers?

If your business operates internationally, you may depend on global data transfers to function efficiently and run your business. However, despite the valuable nature of overseas business partners, different countries apply varying levels of data protection, which raises concerns from a UK law perspective. 

Some jurisdictions lack the same level of legal protection as the UK GDPR. Transferring personal data to a country with weaker privacy laws increases the risk of various issues, e.g. unauthorised access, government surveillance, or data misuse. The UK GDPR prevents businesses from bypassing UK data protection rules by requiring them to keep personal data secure, regardless of where it is processed.

The ICO expects businesses to assess their international data transfers, apply necessary safeguards, and monitor compliance regularly. Failure to comply with these requirements risks regulatory enforcement, financial penalties, and reputational damage.

How Can You Determine Whether a Transfer Is Restricted?

You should carefully map your data flows to determine whether you transfer personal data internationally. If you use an overseas cloud provider, outsource customer service to another country, or allow remote access to UK data from abroad, you are likely making a restricted transfer.

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Once you identify a restricted transfer, you must assess whether you can legally make it under the UK GDPR. If you need help understanding whether or not you are making restricted transfers, you should seek legal advice from a data protection solicitor. 

How Can You Transfer Personal Data Outside the UK Lawfully? 

UK GDPR only allows international data transfers if you ensure the data remains protected. A restricted transfer is permitted only if legal mechanisms apply, for instance: 

• the UK government has determined that the recipient country offers adequate data protection. The UK has granted adequacy decisions to certain countries, such as New Zealand and Israel. No further action is required if you transfer data to one of these countries; 
• if no adequacy decision exists, you must implement appropriate safeguards to protect the transfer. The most commonly used safeguards include EU Standard Contractual Clauses (SCCs) with the UK Addendum and the International Data Transfer Agreement (IDTA); and
• Binding Corporate Rules (BCRs) may be used for intra-group transfers.

You may only transfer data under limited exceptions if neither adequate decisions nor safeguards apply. These include explicit consent, which must be obtained from the data subject after informing them of the risks or where transfers are necessary for contract performance. However, you should use these exceptions only in specific situations. 

What Happens If You Do Not Comply?

Ignoring UK GDPR’s international data transfer rules exposes you to regulatory enforcement, reputational damage, and financial penalties. The ICO can issue fines of up to £17.5 million or 4% of annual global turnover for non-compliance. 

Key Takeaways

If you transfer personal data outside the UK, you must determine whether the transfer is restricted under UK GDPR. If a restricted transfer occurs, you must ensure your transfers are compliant with the UK GDPR rules.  Failing to comply with data transfer rules can lead to financial penalties, regulatory investigations, and reputational damage. 

If you need help understanding if your business carries out restricted transfers, our experienced data, privacy and IT lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers who can answer your questions and draft and review your documents. Call us today at 0808 196 8584 or visit our membership page.

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