Financial Crime World

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Egypt’s New Data Protection Law: A Solid Foundation for Digital Transformation

The Egyptian government has published a new data protection law that aims to strengthen residents’ rights of privacy and create a solid legal foundation for Egypt’s digital transformation. This landmark legislation introduces key provisions that will impact companies operating in the country.

Key Provisions

Data Protection Officer (DPO)

Companies must appoint a Data Protection Officer, who will serve as the primary point of contact for dealings with the Regulator.

  • The DPO will be responsible for ensuring compliance with the Law and implementing data protection policies within the organization.
  • This provision aims to promote transparency and accountability in data handling practices.

Cross-border Transfers

To transfer personal data out of Egypt, companies must obtain a license from the Regulator. The license will only be granted if the recipient country provides similar protection to personal data as Egypt under the Law.

  • This provision ensures that personal data is not compromised when transferred across borders.
  • Companies must carefully assess their international data transfer practices to ensure compliance with this requirement.

Notification Requirements

Companies are obligated to report security breaches to the Regulator within 72 hours. Failure to comply may result in severe consequences, including onerous criminal and financial penalties.

  • This provision aims to facilitate swift response to data breaches and minimize their impact.
  • Companies must establish robust incident response plans to ensure compliance with this requirement.

Data Subject Rights

Data subjects have rights such as revoking consent, objecting to processing, and having their data rectified. However, exercise of these rights may be subject to a fee up to 20,000 EGP (USD 1,250).

  • This provision aims to empower individuals with control over their personal data.
  • Companies must balance the need for data protection with the legitimate interests of data subjects.

Regulator and Sanctions

The Personal Data Protection Centre will enforce the Law. Failure to comply may result in onerous criminal and financial penalties, including imprisonment for directors and managers.

  • This provision emphasizes the importance of compliance with the Law.
  • Companies must prioritize data protection practices and establish robust internal controls to avoid non-compliance.

Conclusion

The new Egyptian Data Protection Law creates a transparent and solid legal foundation for Egypt’s digital transformation while strengthening residents’ rights of privacy. Domestic companies should begin preparing now to achieve compliance, as the work required can be time-consuming despite the generous grace period. By prioritizing data protection practices and establishing robust internal controls, companies can ensure compliance with the Law and minimize potential risks associated with non-compliance.