Binding Corporate Rules (BCRs)

Definition

Internal data protection policies adopted by multinational companies and approved by European data protection authorities that permit transfers of personal data among corporate group entities worldwide. BCRs provide an approved transfer mechanism under GDPR, allowing companies with complex international structures to transfer data efficiently while maintaining strong privacy protections. The BCR approval process is demanding, requiring evidence that all group entities will comply with the rules, that data subjects have enforceable rights, and that effective compliance mechanisms exist. BCRs must cover all relevant data protection principles, specify data subject rights, describe transfer conditions, establish liability mechanisms, and ensure cooperation with supervisory authorities. Once approved by one lead authority and recognized by others through the consistency mechanism, BCRs enable seamless global data flows within the corporate group. However, BCRs require significant investment to develop and maintain.

Applicable Laws & Regulations

  1. 1GDPR Article 47 - Binding corporate rules provisions
  2. 2GDPR Article 46(2)(b) - BCRs as approved transfer mechanism
  3. 3GDPR Article 4(20) - Definition of binding corporate rules

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