Commercial Books and International Data Transfers

The Public Registry of Commerce (the “PRC”) requested the opinion of the Data Protection Authority (the “DPA”) in connection with the necessity of the DPA’s intervention in international transfers of personal data contained in the commercial books of legal entities subject to the PRC’s control.

Previously, the PRC had issued a report stating that despite the practical convenience of requesting a mirror server in Argentina to allow for better control, there was no legal impediment for legal entities to store commercial books in servers located abroad.

The DPA analyzed the matter within the framework of an international data transfer with the purpose of providing a service through the internet.

In this connection, the DPA referred to the principles of Argentine Data Protection Law No. 25,326 (“DPL”), which forbids transferring data internationally to countries without proper legislation, unless it is conducted: a) with the consent of data owner; b) with a self-regulated system; or c) within an international data transfer agreement.

Thereupon, the DPA stated that Rule No. 60/2016 (the “Rule”) approved model agreements for international data transfers which do not require prior approval or control, adding that if the parties choose to employ other agreements which do not include the principles and guarantees provided by the DPL, these must be filed with the DPA for their revision and approval.

Consequently, the DPA states that its intervention would be necessary exclusively in those cases which involve international personal data transfers to countries without proper legislation, and in which the international transfer agreements in place do not include the recommended terms approved by the Rule or, as was previously indicated, do not contain the principles, guarantees and contents of said terms.

Therefore, the prior report issued by the PRC and DPA’s opinion authorize legal entities subject to the PRC’s control -with the restrictions and obligations set out by the DPA- to store their commercial books in servers located abroad.