Financial Crime World

South Africa’s Businesses Face Compliance Challenges as POPIA Takes Effect

As South Africa’s Protection of Personal Information Act (POPIA) officially came into effect on July 1, 2021, many local businesses are still grappling with the practical implications of the regulatory requirements.

Key Challenges Ahead for Organisations

According to compliance and governance experts, several key challenges lie ahead for organisations seeking to adapt to POPIA in action. Some of these challenges include:

  • Data Subject Access Requests: Companies may receive a high volume of data subject access requests from the public, which can be labour-intensive and require adequate resources and training to handle without hindering business operations.
  • Uncertainty around Interpretation of Legislation: There is limited guidance on certain aspects of POPIA legislation, such as what constitutes personal information in the context of juristic persons. This lack of clarity may lead to more organisations seeking clarification from the Regulator.
  • Convergence of Law and Technology: The convergence of law and technology has become a major concern for businesses. As most personal information and data are created, shared, and stored electronically, technology plays a vital role in compliance. However, this requires legal and IT teams to collaborate closely, often for the first time.
  • Data Retention Policies: Historically, companies have tended to retain paper-based documents indefinitely, but with digital storage becoming more prevalent, it’s essential to implement compliant disposition policies to ensure the deletion of personal information that has outlived its purpose.
  • Compliance Skills Shortage: A compliance skills shortage is emerging as technology evolves and regulations adapt. Without experts with the right combination of legal knowledge, technical understanding, and business acumen, organisations will struggle to stay on top of their compliance obligations.

Overcoming Challenges

To overcome these challenges, businesses must develop effective strategies for managing compliance. This includes:

  • Developing In-House Expertise: Organisations should invest in developing in-house expertise or seek support from partners like Cloud Essentials.
  • Collaboration between Legal and IT Teams: Effective communication channels are crucial to ensure that legal and IT teams work together seamlessly to manage compliance.
  • Implementing Compliant Disposition Policies: Companies must implement policies for deleting personal information that has outlived its purpose.
  • Seeking Expert Guidance: Organisations should seek expert guidance from compliance and governance experts to ensure successful implementation and avoidance of potential penalties.

By understanding the key challenges ahead and seeking expert guidance, organisations can ensure they remain compliant and mitigate risks in a rapidly evolving regulatory landscape.