Financial Crime World

Consent Requirements for Cybersecurity Measures: A New Era for Japanese Businesses

In a bid to strengthen cybersecurity measures, Japan has introduced new regulations that require businesses to obtain consent from customers before collecting and using personal information. The new rules, which come into effect in 2024, aim to prevent cyberattacks by ensuring that companies handle sensitive data responsibly.

The APPI’s Role in Cybersecurity

Under the Act on the Protection of Personal Information (APPI), business operators must report incidents related to personal data breaches or leaks to the Personal Information Protection Commission (PPC) and notify affected individuals. The APPI also requires companies to take measures to prevent such incidents from occurring.

Key Requirements

  • Report incidents to PPC
  • Notify affected individuals
  • Take measures to prevent incidents

New Security Clearance Legislation

A new security clearance legislation is expected to be enacted in 2024, requiring private companies and employees with access to sensitive information to undergo security screening. This move aims to enhance national security by preventing unauthorized access to critical infrastructure and data.

Key Requirements

  • Private companies must undergo security screening
  • Employees with access to sensitive information must undergo security screening
  • Security screening aims to prevent unauthorized access to critical infrastructure and data

Critical Infrastructure Operators

Operators of critical infrastructure, such as financial institutions and telecommunications providers, are required to take measures to deepen their understanding of cybersecurity risks and implement voluntary and proactive measures to ensure the stability of their services.

Key Requirements

  • Deepen understanding of cybersecurity risks
  • Implement voluntary and proactive measures to ensure service stability
  • Ensure stability of critical infrastructure

Cybersecurity Management Guidelines

The Ministry of Economy, Trade and Industry (METI) and the Information-technology Promotion Agency (IPA) have jointly issued guidelines for cybersecurity management. These guidelines recommend that companies:

Key Recommendations

  • Recognize cybersecurity risks
  • Develop company-wide measures
  • Secure resources to execute cybersecurity measures

In light of these new regulations, businesses operating in Japan must obtain consent from customers before collecting and using personal information. The APPI requires that companies provide clear explanations of how they will use the information and obtain explicit consent from individuals before processing their data.

Key Requirements

  • Obtain consent from customers before collecting and using personal information
  • Provide clear explanations of how information will be used
  • Obtain explicit consent from individuals before processing data

Conclusion

The introduction of consent requirements for cybersecurity measures marks a significant shift in Japan’s approach to data protection. Businesses operating in the country must now take steps to ensure that they are handling personal information responsibly, or risk facing severe penalties. As the new regulations come into effect, companies will need to adapt to these changes and prioritize data privacy and security.