CELEX: 52016PC0237
Language: en
Date: 2016-04-29
Title: Proposal for a COUNCIL DECISION on the conclusion, on behalf of the European Union, of an Agreement between the United States of America and the European Union on the protection of personal information relating to the prevention, investigation, detection, and prosecution of criminal offenses

EUROPEAN COMMISSION
            Brussels, 29.4.2016
            COM(2016) 237 final
            2016/0126(NLE)
            Proposal for a
            COUNCIL DECISION
            on the conclusion, on behalf of the European Union, of an Agreement between the United States of America and the European Union on the protection of personal information relating to the prevention, investigation, detection, and prosecution of criminal offenses
            
               
         
         
            
               EXPLANATORY MEMORANDUM
            
            
               1.CONTEXT OF THE PROPOSAL
            
            
               •Reasons for and objectives of the proposal
            
            
               
                  A High Level Contact Group ("HLCG"), composed of senior officials from the Commission, the Council Presidency and the U.S. Departments of Justice, Homeland Security and State, was established in November 2006 to explore ways that would enable the EU and the U.S. to work more closely and efficiently together in the exchange of law enforcement information while ensuring that the protection of personal data and privacy are guaranteed. The conclusion reached in the HLCG final report of October 2009
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                   was that an international agreement binding both the EU and the U.S. to apply agreed common data protection principles for transatlantic data transfers in the law enforcement area was the best option: it would offer the advantage of establishing the fundamentals of effective privacy and personal data protection governing any exchange of law enforcement information and would provide the highest level of legal certainty. 
               
               
                  On 3 December 2010, the Council adopted a decision authorising the Commission to open negotiations on an agreement between the European Union and the United States of America on the protection of personal data when transferred and processed for the purpose of preventing, investigating, detecting or prosecuting criminal offences, including terrorism, in the framework of police cooperation and judicial cooperation in criminal matters (hereinafter referred to as "the Umbrella Agreement").
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                  On 28 March 2011, the Commission opened negotiations. On 8 September 2015, the Parties initialled the text.
               
               
                  The Umbrella Agreement establishes (for the first time ever) a comprehensive framework of data protection principles and safeguards when personal information
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                   is transferred for criminal law enforcement purposes between the U.S., on the one hand, and the EU or its Member States on the other. The double objective is to ensure a high level of data protection and, thereby, enhance cooperation between the parties. Whilst not being itself the legal basis for any transfer of personal information to the U.S., the Umbrella Agreement supplements, where necessary, data protection safeguards in existing and future data transfer agreements or national provisions authorising such transfers.
               
               
                  This represents a very substantial improvement compared to the present situation where personal information is transferred across the Atlantic on the basis of legal instruments (international agreements or domestic laws) that generally contain no or only weak data protection provisions.  
               
               
                   •
                        Consistency with existing policy provisions in the policy area
               
               
                  The Umbrella Agreement will enhance the protections afforded to all personal data of EU data subjects when exchanged with the U.S. for criminal law enforcement purposes. By establishing a comprehensive framework of data protection guarantees, the Agreement will complement existing agreements (both bilateral agreements between and Member States and the U.S. and EU-U.S. agreements) on the basis of which personal data is sent to the U.S. for law enforcement purposes, when and to the extent they lack the requisite level of protections and safeguards. 
               
               
                  Moreover, the Agreement will provide a "safety net" for future EU/Member States-U.S. agreements below which the level of protection cannot fall. This is an important guarantee for the future and a major shift from the present situation where safeguards, protections and rights have to be negotiated afresh for each individual new agreement. 
               
               
                  Overall, the Umbrella Agreement will bring significant added value in terms of raising the level of protection of EU data subjects, in line with the requirements of EU primary and secondary law. For the very first time, it will introduce a data protection instrument that covers in a comprehensive and consistent manner all data transfers in a given area (i.e. transatlantic data exchanges in the field of police cooperation and judicial cooperation in criminal matters). Furthermore, the Umbrella Agreement will substantiate in the transatlantic context the general requirements on international data transfers laid down in the future Directive on the protection of individuals with regard to the processing of personal data by competent authorities for the purposes of prevention, investigation, detection or prosecution of criminal offences or the execution of criminal penalties, and the free movement of such data (hereinafter "the Police Directive")
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                   adopted on 14 April 2016. In light of the above, the Umbrella Agreement also sets an important precedent for possible similar agreements with other international partners.
               
            
            
               •Consistency with other Union policies
            
            
               
                  The Umbrella Agreement is expected to have a significant impact on police and law enforcement cooperation with the United States. By establishing a common and comprehensive framework of data protection rules and guarantees, it will enable the EU or its Member States, on the one hand, and U.S. criminal law enforcement authorities on the other hand to cooperate more effectively with each other. Moreover, it will ensure that existing agreements contain all necessary protections. This will enable continuity in law enforcement cooperation while ensuring greater legal certainty when transfers are made. The Agreement will also facilitate the conclusion of future data transfer agreements with the U.S. in the criminal law enforcement sector, as data protection safeguards will have been agreed and will thus not have to be negotiated again and again. Finally, setting common standards in this key but complex area of cooperation is an important achievement that can significantly contribute to restoring trust in transatlantic data flows.
               
            
            
               2.LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY
            
            
               •Legal basis
            
            
               
                  The legal basis for this proposal is Article 16 TFEU, in conjunction with Article 218 (6)(a) TFEU.    
               
            
            
               •Subsidiarity 
            
            
               
                  The Umbrella Agreement falls under the exclusive competence of the EU pursuant to Article 3(2) TFEU. Therefore, the subsidiarity principle does not apply.
               
            
         
         
            
               •Proportionality
            
            
               
                  The Umbrella Agreement provides for the data protection guarantees required under the Negotiating Directives of the Council. They are considered as necessary elements to ensure the requisite level of protection when personal data is transferred to a third country, both under the Charter of Fundamental Rights and under the evolving EU acquis. Neither a substantially smaller catalogue of such guarantees nor an instrument with less binding force could be considered as sufficient to provide such a level of protection. Therefore, the proposal does not go further than what is necessary to achieve the policy objective of establishing a framework for the protection of personal data when transferred between the United States, on the one hand, and the European Union or its Member States, on the other, in the context of law enforcement. 
               
            
            
               •Choice of the instrument
            
            
               
                  The establishment of a binding framework for the protection of personal data, that will complement existing agreements and constitute a baseline for future agreements, can only be ensured through an international agreement concluded between the EU and the United States.
               
               
                  Moreover, as highlighted in the HLCG report of October 2009, an international agreement provides the highest level of legal certainty.
               
            
            
               3.RESULTS OF EX-POST EVALUATIONS, STAKEHOLDER CONSULTATIONS AND IMPACT ASSESSMENTS
            
            
               •Ex-post evaluations/fitness checks of existing legislation
            
            
               
                  Not applicable.
               
            
            
               •Stakeholder consultations
            
            
               
                  The Commission has regularly reported both orally and in writing to the designated special Council committee on the progress of the negotiations. The European Parliament has been regularly informed, through its Committee for Civil Liberties, Justice and Home Affairs (LIBE), both orally and in writing. 
               
            
            
               •Collection and use of expertise
            
            
               
                  The initiative implements the Council negotiation directives of 3 December 2010. 
               
            
            
               •Impact assessment
            
            
               
                  No impact assessment was needed. The proposed agreement is in line with the Council negotiating directives.
               
            
            
               •Regulatory fitness and simplification
            
            
               
                  Not applicable.
               
            
            
               •Fundamental rights
            
            
               
                  The provisions of the Umbrella Agreement aim at the protection of the fundamental right to the protection of personal data and the right to an effective remedy and to a fair trial, as enshrined, respectively, in Article 8 and Article 47 of the Charter of Fundamental Rights of the European Union. 
               
            
            
               4.BUDGETARY IMPLICATIONS
            
            
               
                  The proposed agreement has no budgetary implications.
               
            
         
         
            
               5.OTHER ELEMENTS
            
            
               •Implementation plans and monitoring, evaluation and reporting arrangements
            
            
               
                  Implementation by Member States will be necessary, but no major changes in the laws are to be expected since the substantive provisions of the Umbrella Agreement reflect to a large extent rules that are already applicable to EU and national authorities under EU and/or national law. 
               
            
            
               •Detailed explanation of the specific provisions of the proposal
            
            
               
                  The Umbrella Agreement, in line with the Council negotiating directives, covers five categories of provisions: (i) horizontal provisions; (ii) data protection principles and safeguards; (iii) individual rights; (iv) aspects relating to the application of the Agreement and to oversight; and (v) final provisions.
               
               
                  (i)
                        Horizontal Provisions
               
               
                  (i) Purpose of the Agreement (Article 1)
               
               
                  To attain the purpose of the agreement (i.e. to ensure a high level of protection of personal information and to enhance cooperation in the law enforcement area), the Umbrella Agreement establishes a framework for the protection of personal information when transferred between the U.S., on the one hand, and the EU or its Member States on the other, for the prevention, investigation, detection or prosecution of criminal offences, including terrorism. The reference to the notions of "prevention, detection, investigation and prosecution of criminal offences" (hereinafter collectively referred to as "law enforcement") ensures that this agreement will be compatible with the architecture of the current and future EU data protection acquis (in particular, the delineation between the Regulation on the protection of individuals with regard to the processing of personal data and on the free movement of such data ("General Data Protection Regulation"
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                  ) and the "Police Directive" as regards their respective coverage).
               
               
                  By specifying that the Umbrella Agreement in itself shall not be the legal basis for any transfer of personal information and that a (separate) legal basis shall always be required, Article 1 also makes clear that the Umbrella Agreement is a genuine fundamental right agreement establishing a set of protections and safeguards applying to such transfers. 
               
               
                  (ii) Definitions (Article 2)
               
               
                  The key terms of the Umbrella Agreement are defined in Article 2. The definitions of "personal information", "processing of personal information", "Parties", "Member State" and "Competent Authority" are substantially in line with how these concepts have been defined in other EU-U.S. agreements and/or in the EU data protection acquis.
               
               
                  (iii) Scope of the Agreement (Article 3)
               
               
                  Article 3 of the Umbrella Agreement defines the scope of the Umbrella Agreement. It will ensure that the protections and safeguards provided by the Umbrella Agreement apply to all data exchanges taking place in the context of transatlantic law enforcement co-operation in criminal matters. This includes transfers on the basis of domestic laws, EU-U.S. agreements (e.g. the EU-U.S. Mutual Legal Assistance Treaty), Member States-U.S. agreements (e.g. Mutual Legal Assistance Treaties, Agreements on Enhancing Cooperation in Preventing and Combating Serious Crime, Terrorist Screening Information Agreements or Arrangements), as well as specific agreements providing for the transfer of personal data by private entities for law enforcement purposes (e.g. under the EU-U.S. Passenger Name Records
                     6
                   ("PNR") Agreement and the Terrorist Finance Tracking Program
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                   ("TFTP") Agreement). The scope is formulated on a "data transfer basis", i.e. it covers, in principle, all data transfers for criminal law enforcement purposes between the EU and the U.S. regardless of the nationality or place of residence of the data subject concerned. 
               
            
            
               The Umbrella Agreement will not cover transfers of personal data (or other forms of cooperation) between U.S. and Member States' authorities responsible for safeguarding national security.  
            
            
               
                  (iv) Non-discrimination (Article 4)
               
               
                  Article 4 provides that each Party will implement the Umbrella Agreement without any arbitrary or unjustifiable discrimination between its own nationals and those of the other Party.
               
               
                  This Article complements and strengthens other provisions of the Agreement (in particular, articles providing safeguards to individuals such as access, rectification and administrative redress, see infra), as it ensures that European nationals will benefit, in principle, from equal treatment with U.S. citizens when it comes to the practical implementation of these provisions by U.S. authorities. 
               
               
                  (v) Effect of the Agreement (Article 5)
               
               
                  As regards existing agreements in place between the EU/Member States and the U.S., the Umbrella Agreement will supplement them as appropriate i.e. when and to the extent they lack the necessary data protection safeguards.
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                  The effective implementation of the Umbrella Agreement (and in particular of its articles concerning individual rights) triggers a presumption of compatibility with the applicable international data transfer rules. This is neither an automatic nor a general presumption and, like all presumptions, it can be rebutted. It is not an automatic presumption because its application expressly depends on the effective implementation of the Umbrella Agreement by the U.S. and more specifically – as paragraph 2 of Article 5 expressly clarifies – on the effective implementation of the articles on the rights of individuals (in particular, access, rectification, administrative and judicial redress). It is not a general presumption either: given that the Umbrella Agreement is not a "self-standing" instrument for transfers, such a presumption necessarily operates on a "case by case" basis, i.e. by assessing if the combination of the Umbrella Agreement and the specific legal basis for the transfer provide a level of protection in line with EU data protection rules. . In other words, differently from an adequacy finding, this clause does not provide for an "en bloc" recognition of the level of protection provided in the U.S. as such or a general authorisation for transfers.
               
            
         
         
            
               
                   (ii)
                        Data Protection Principles and Safeguards
               
               
                  The Articles described below cover important principles governing personal data processing as well as key safeguards and limitations.
               
               
                  (i) Purpose and Use Limitations (Article 6)
               
               
                  In line with the EU Charter of Fundamental Rights and the EU acquis, Article 6 applies the purpose limitation principle to all transfers of personal data covered by the Umbrella Agreement, both in case of transfers in relation to specific cases and where the U.S. and the EU/its Member States conclude an agreement that authorises transfers of personal data in bulk. Processing (which includes transfers) can take place only for explicit and legitimate purposes within the scope of the Umbrella Agreement, i.e. the prevention, investigation, detection or prosecution of criminal offences, including terrorism. 
               
               
                  Moreover, further processing of personal information by other (law enforcement, regulatory or administrative) authorities than the first receiving authority of a Party is allowed on condition that it is not incompatible with the purposes for which it was originally transferred and that such other authority complies with all the other provisions of the Umbrella Agreement.
               
               
                  The transferring competent authority may also impose additional conditions (e.g. on the use of the data) in specific cases.
               
               
                  Finally, personal information shall only be processed if "directly relevant to and not excessive or overbroad in relation to the purposes of such processing".
               
               
                  Article 6 is a key provision of the Agreement: it ensures the application of the safeguards to the entire "life cycle" of a given data set from the original transfer from the EU to its processing by a U.S. competent authority and vice-versa, as well as its possible further sharing with/processing by another U.S. authority or, in the case of a data transfer from the U.S. to a competent authority of the EU or (one of ) its Member States, its possible further sharing with/processing by another EU or Member State authority. 
               
               
                   (ii) Onward Transfer (Article 7)
               
               
                  The onward transfer limitations set out in Article 7 entail that in case a U.S. authority intends to further transfer data it has received from the EU or one of its Member States to a third country/international organisation not bound by the agreement, it will first have to obtain the consent from the law enforcement authority in the EU which has originally transferred the data to the United States. This rule equally applies in case an authority of the EU or one of its Member States intends to further transfer data it has received from the U.S. to a third country/international organisation. 
               
               
                  When deciding to grant its consent, the original transferring authority will have to take into due account all relevant factors, including the purpose for which the data was initially transferred and whether the third country or international organisation offers an appropriate level of protection of personal information. It may also subject the transfer to specific conditions.
               
               
                  Furthermore, as for the articles on purpose limitation (see supra Art. 6), retention periods (see infra Art. 12) and sensitive data (see infra Art. 13), this Article expressly takes into account the special sensitivity of the transfer in bulk of data of unsuspected persons (e.g. PNR data of every passenger taking a flight, independently of any specific suspicion), in that it requires that any further transfer of personal information "other than in relation to specific cases" may only take place under specific conditions set forth in the agreement that provide due justification for the onward transfer. 
               
               
                  The specific situation of onward transfers to another State within the EU (e.g. the French police sharing with the German police information received from the U.S. FBI) is also addressed in this Article (par. 4) by providing that if under applicable rules such transfers are subject to prior consent, the authority which has originally sent the information (e.g. the U.S. FBI) will not be able to refuse consent or impose conditions on data protection grounds (as all the authorities involved are bound by the Umbrella Agreement).
               
               
                  (iii) Data Quality and Integrity of Information (Article 8)
               
               
                  The Parties will take reasonable steps to ensure that transferred personal data is maintained with such accuracy, relevance, timeliness and completeness as is necessary and appropriate for lawful processing of the information. Where the receiving or transferring authority becomes aware of significant doubts as to the relevance, timeliness, completeness or accuracy of personal data received or transferred, it shall, where feasible, advise the transferring/receiving authority thereof.
               
               
                  (iv) Information Security (Article 9) and Notification of an information security incident (Article 10)
               
               
                  These articles contribute to ensuring a high level of security of personal data exchanged by the parties to the Umbrella Agreement.
               
               
                  First, pursuant to Article 9, appropriate technical, security and organisational arrangements will be put in place by the Parties for the protection of personal information against accidental or unlawful destruction, accidental loss, and unauthorised disclosure, alteration, access or other processing. These arrangements will also include that access to personal data be granted only to authorised staff. 
               
               
                  Secondly, pursuant to Article 10, in case of a security incident presenting a significant risk of damage, appropriate action shall be promptly taken to mitigate the damage, including notification to the transferring authority and, where appropriate given the circumstances of the incident, the individual concerned. Exceptions to the notification obligation are exhaustively listed in the provision and correspond to reasonable limitations (e.g. national security). 
               
               
                  (v) Maintaining records (Article 11)
               
            
         
         
            
               
                  The Parties shall have in place effective methods (such as logs) for demonstrating the lawfulness of processing and use of personal information.
               
               
                  This requirement represents a significant safeguard for individuals, as it puts the onus on law enforcement authorities to demonstrate that a given data processing operation was carried out in accordance with the law. The obligation to document data processing operations entails, in particular, that there will be a "trace" in case of unlawful processing. This should facilitate the handling of complaints and the introduction of claims regarding the lawfulness of the processing operations.
               
               
                  (vi) Retention period (Article 12)
               
               
                  The processing of data will be subject to specific retention periods in order to ensure that data will not be retained for longer than necessary and appropriate. To determine the duration of these retention periods, a number of elements will have to be taken into account, in particular the purpose of processing or use, the nature of the data and the impact on the rights and interests of the data subjects concerned.
               
               
                  It is also specified that, where the Parties conclude an agreement on the transfer of "bulk data", such agreement must contain a specific provision on the applicable retention period. With this provision, the Parties accept the principle that such bulk transfer agreements shall contain a specific retention period, which therefore will not have to be negotiated again.
               
               
                  The retention periods will be subject to periodic reviews to determine whether changed circumstances require any modification of the applicable period. 
               
               
                  To ensure transparency, retention periods will have to be published or otherwise made publicly available.
               
               
                  (vii)
                        Special categories of data (Article 13)
               
               
                  The processing of personal data revealing racial or ethnic origin, political opinions or religious or other beliefs, trade-union membership or personal information concerning health or sexual life, may only take place when appropriate safeguards are in place in accordance with law (e.g. masking the information after effecting the purpose for which the data was processed or requiring supervisory approval to access the information).
               
               
                  Agreements allowing the "bulk transfer" of personal data will have to further specify the standards and conditions under which special categories of data can be processed.
               
               
                  The provisions on special categories of data are coherent with the requirement that processing shall be directly relevant and not excessive under Article 6 on purpose and use limitations. 
               
               
                  (viii) Automated decision-making (Article 15)
               
               
                  Data processing that may result in decisions having negative consequences on an individual (e.g. in the context of profiling) may not be based solely on the automated processing of personal information, unless authorised by domestic law, and provided that appropriate safeguards are in place, including the possibility to obtain human intervention. 
               
               
                  (ix) Transparency (Article 20)
               
               
                  Individuals are entitled to receive information (through general or individual notices and subject to "reasonable restrictions") regarding the purpose of processing and possible further use of their personal data, the laws or rules under which such processing takes place, the identity of third parties to whom their personal information may be disclosed, as well as the access, rectification and redress mechanisms available. 
               
               
                  To raise the individuals' awareness as to why and by whom their data is processed contributes to the possibility for individuals to exercise their rights to access, rectification or redress (see infra Art. 16-19).
               
               
                  (iii)
                        Individual Rights 
               
               
                  These rights are of particular relevance for the protection of data subjects who will be able, for the first time, to avail themselves of rights of general application for any transatlantic transfer of personal data in the criminal law enforcement sector. 
               
               
                  (i) Access and Rectification (Article 16 and Article 17)
               
               
                  The right to access entitles any individual to seek and obtain access to his or her personal data. The grounds for restricting access are set out exhaustively and correspond to reasonable restrictions (e.g. safeguard national security, avoid prejudicing the investigation or prosecution of criminal offenses, protect the rights and freedoms of others). Excessive expenses may not be imposed as a condition to access one's data. 
               
            
         
         
            
               
                  The right to rectification entitles any individual to request the correction or rectification of his or her personal data in case it is either inaccurate or it has been improperly processed. This may include supplementation, erasure, blocking or other measures or methods for addressing inaccuracies or improper processing.
               
               
                  Where the competent authority of the recipient country concludes, following a request by an individual, a notification by the provider of the personal information or its own investigation, that the information is inaccurate or has been improperly processed, it shall take measures of supplementation, erasure, blocking, or other measures of correction or rectification. 
               
               
                  Where permitted by national law, any individual is entitled to authorise, an oversight authority (i.e. a national data protection authority for an EU data subject) to request access or rectification on his or her behalf. This possibility of the indirect exercise of rights, through an authority and within a legal system they are familiar with, should concretely assist the data subjects when seeking to enforce their rights.
               
               
                  If access or rectification requests are denied or restricted, the requested authority shall provide the individual (or his or her duly authorised representative) with a response setting forth the reasons for the denial or restriction of access or rectification. The obligation to provide the individual with a reasoned reply aims at enabling and facilitating the exercise of his/her right to administrative and judicial redress in case access/rectification is denied or restricted by the concerned law enforcement authority.
               
               
                  (ii) Administrative redress (Article 18)
               
               
                  Should an individual disagree with the outcome of his or her request for access/rectification of personal data, he or she will be entitled to seek administrative redress. As for access and rectification, to facilitate the effective exercise of this right, the data subject concerned is entitled to authorise an oversight authority (i.e. a national data protection authority for an EU data subject) or another representative, where permitted under applicable domestic law.
               
               
                  The authority from which relief is sought will provide the data subject concerned with a written response indicating, where applicable, the ameliorative or corrective actions taken.
               
               
                  (iii) Judicial Redress (Article 19)
               
               
                  The citizens of each Party shall be able to seek judicial redress for the i) denial of access, ii) denial of rectification or iii) unlawful disclosure by the authorities of the other Party. 
               
               
                  On the U.S. side, this has been reflected in the Judicial Redress Act signed by President Obama on 24 February 2016. This Act will extend to the citizens of "covered countries"
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                   these three judicial redress grounds as provided under the 1974 US Privacy Act, but currently reserved to U.S. citizens and permanent residents. The fourth recital of the Umbrella Agreement's Preamble makes clear that this extension will also cover data exchanged under agreements such as PNR and TFTP. In combination with the adoption of the Judicial Redress Act, Article 19 will thus significantly improve the judicial protection of EU citizens.
               
               
                  Although the Judicial Redress Act contains a number of limitations (in particular, it will only apply to the data of citizens from "covered countries" whose data have been transferred by EU law enforcement authorities, in particular, but not only EU citizens ), Article 19 of the Umbrella Agreement addresses a long-sought EU demand. 
               
               
                  The provision corresponds to President Juncker’s political guidelines according to which “The United States must [...] guarantee that all EU citizens have the right to enforce data protection rights in U.S. courts, whether or not they reside on U.S. soil. Removing such a discrimination will be essential for restoring trust in transatlantic relations". Likewise, it responds to the European Parliament Resolution of 12 March 2014 on the U.S. NSA surveillance programme, by which the Parliament asked to immediately resume the negotiations with the U.S. on the "Umbrella Agreement" to "put rights for EU citizens on an equal footing with rights for US citizens (…)" and to provide "effective and enforceable (…) judicial remedies for all EU citizens in the US without any discrimination".
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                  Paragraph 3 of Article 19 clarifies that the extension of the three above-mentioned judicial redress grounds is without prejudice to other judicial redress avenues that are otherwise available with respect to data processing (e.g. under the Administrative Procedure Act, the   Electronics Communication Privacy Act or the Freedom of Information Act). These other legal bases for judicial redress are open to all EU data subjects concerned by the data transfer for law enforcement purposes, regardless of their nationality or place of residence. 
               
               
                  (iv)
                        Aspects relating to the application of the Umbrella Agreement and oversight
               
               
                  (i) Accountability (Article 14)
               
               
                  Measures shall be in place to promote accountability of the authorities processing personal data covered by the Umbrella Agreement. In particular, when personal data is further shared by the receiving authority with other authorities, the latter should be notified of the safeguards applicable under this Agreement as well as possible additional (restrictive) conditions that have been attached to the transfer pursuant to Article 6(3) (on purpose and use limitations). Serious misconduct shall be addressed through appropriate and dissuasive criminal, civil or administrative sanctions.
               
               
               
                  Measures to promote accountability also include, as appropriate, discontinuation of further transfers of personal data to entities of the Parties not covered by the Umbrella Agreement, in case they do not ensure an effective protection of personal information in light of the purpose of the Agreement (and in particular of the purpose limitation and onward transfer provisions). This provision addresses the situation where personal data is sent by an EU authority to a U.S. federal authority (i.e. an authority covered by this Agreement) and then further transferred to a law enforcement authority at State level. Under its constitutional rules, the U.S. is limited in its capacity to bind its federated States at international level.
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                   Yet, to ensure continuity of protection to the data transferred to U.S. federal agencies and then shared with law enforcement agencies at State level, this Article (i) includes in its scope the "other authorities" of the Parties (i.e. the authorities not covered by this Agreement such as U.S. States' authorities); (ii) stipulates that the safeguards provided under the Umbrella Agreement be notified to them; and (iii) provides that, as appropriate, transfers to such authorities be discontinued in case they do not effectively protect personal data in light of the purpose of the Umbrella Agreement and in particular of its articles on purpose limitation and onward transfers. 
               
               
               
                  By aiming at ensuring that the competent law enforcement authorities will be held accountable for compliance with the Umbrella Agreement, this Article is an important building block of an effective system of enforcement and oversight under the Agreement. It will also facilitate the introduction of claims by individuals in cases of misconduct (and consequent liability of public authorities).
               
            
         
         
            
               
               
                  Finally, EU authorities will be able to raise concerns with and receive relevant information from their U.S. counterparts on how they comply with their obligations under Article 14 (including on the measures taken in this respect). Also, in the context of the joint reviews (see infra Art. 23), particular attention will be paid to the effective implementation of this Article.
               
               
               
                  (ii) Effective oversight (Article 21) 
               
               
                  The Parties shall have in place one or more public authorities exercising independent oversight functions and powers, including review, investigation and intervention. These authorities shall have the power to accept and act upon complaints made by individuals relating to the measures implementing the Umbrella Agreement and refer violations of law related to this Agreement for prosecution or disciplinary action. Taking into account the particularities of the U.S. system, a combination of supervisory authorities (including Chief Privacy Officers, Inspector Generals, the Privacy and Civil Liberties Oversight Board etc.) will cumulatively exercise the oversight functions that data protection authorities carry out in the EU.
               
               
                  This article complements the safeguards available on the basis of the access, rectification and administrative redress provisions. In particular, it allows individuals to lodge complaints before independent authorities about how the other Party has implemented the Umbrella Agreement. 
               
               
                   (iii) Cooperation between oversight authorities (Article 22)
               
               
                  Oversight authorities will cooperate with a view to ensuring effective implementation of the Agreement and in particular as regards the system of indirect exercise of individual rights to access, rectification and administrative redress (see supra Art. 16-18). 
               
               
                  Moreover, national contact points shall be established to assist with the identification of the oversight authority to be addressed in a particular case. Given in particular the existence of a number of different oversight authorities in the U.S., the creation of a central “entry point” for requests of assistance and cooperation is designed to contribute to an efficient handling of these requests. 
               
               
                  (iv) Joint Review (Article 23)
               
               
                  The Parties will conduct periodic joint reviews of the implementation and effectiveness of the Umbrella Agreement, placing particular attention on the effective implementation of the articles concerning individual rights (access, rectification, administrative and judicial redress), as well as the issue of transfers to territorial entities not covered by the Agreement (i.e. U.S. States). The first joint review will be conducted no later than three years from the entry into force of the Agreement and thereafter on a regular basis.
               
               
                  The composition of the respective delegations shall include representatives of both data protection authorities and law enforcement/justice authorities, the findings of the joint reviews will be made public.
               
               
                  (v)
                        Final Provisions 
               
               
                  The Umbrella Agreement contains a number of final clauses regarding:
               
            
            
               the notification to the other Party of any acts that materially affect the implementation of the Agreement. The U.S. will specifically notify the EU of any measure relating to the application of the provisions of the Judicial Redress Act (Article 24); 
            
            
               consultations in case there are disputes regarding the way the Agreement is interpreted or applied (Article 25);
            
            
               the possibility to suspend the Agreement by one Party in case of material breach of the Agreement by the other Party (Article 26);
            
            
               the territorial application of the Agreement in order to take into account the specific situation of the United Kingdom, Ireland and Denmark (Article 27);
            
            
               the unlimited duration of the Agreement (which is justified by the nature of the Agreement as a framework providing for protections and safeguards, as well as in the light of the possibility to suspend and terminate the agreement) (Article 28);
            
            
               the possibility for each Party to terminate the Agreement by notification to the other Party, while it is specified that personal information transferred prior to the termination will continue to be processed in accordance with the rules of the Umbrella Agreement (Article 29, par. 2 and 3);
            
         
         
            
               the entry into force of the Agreement the first day of the month following the date in which the Parties have exchanged notifications indicating completion of their internal approval procedures (Article 29, par. 1);
            
            
               the language clause (immediately preceding the signature line) providing that (i) the Agreement will be signed in English and drawn up by the EU in the other 23 EU official languages; (ii) the possibility after the signature to authenticate the text of the Agreement in any of these other EU official languages by means of an exchange of diplomatic notes with the U.S.; (iii) in case of divergence between different authentic language versions of the Agreement, the English version will prevail. 
            
            
               2016/0126 (NLE)
            
            
               Proposal for a
            
            
               COUNCIL DECISION
            
            
               on the conclusion, on behalf of the European Union, of an Agreement between the United States of America and the European Union on the protection of personal information relating to the prevention, investigation, detection, and prosecution of criminal offenses
            
            
               THE COUNCIL OF THE EUROPEAN UNION,
            
            
               Having regard to the Treaty on the Functioning of the European Union, and in particular Article 16 in conjunction with Article 218 (6)(a) thereof,
            
            
               Having regard to the proposal from the European Commission,
            
            
               Having regard to the consent of the European Parliament,
                  12
               
            
            
               After consultation of the European Data Protection Supervisor, 
            
            
               Whereas:
            
            
               (1)In accordance with Council Decision […] of […]
                  13
                the Agreement between the United States of America and the European Union on the protection of personal information relating to the prevention, investigation, detection, and prosecution of criminal offenses (the "Agreement") was signed on XX XXXX 2016, subject to its conclusion at a later date.
            
            
               (2)The Agreement aims at establishing a comprehensive framework of data protection principles and safeguards when personal information is transferred for criminal law enforcement purposes between the U.S., on the one hand, and the EU or its Member States on the other. The objective is to ensure a high level of data protection and, thereby, enhance cooperation between the parties. Whilst not being itself the legal basis for any transfer of personal information to the U.S., the Umbrella Agreement supplements, where necessary, data protection safeguards in existing and future data transfer agreements or national provisions authorising such transfers.
            
            
               (3)The Union has competence covering all the provisions of the Agreement. In particular, the Union has adopted Directive 2016/XXX/EU
                  14
                on the protection of individuals with regard to the processing of personal data by competent authorities for the purposes of prevention, investigation, detection or prosecution of criminal offences or the execution of criminal penalties, and the free movement of such data. 
            
            
               (4)The European Union has exclusive competence to the extent that the Agreement may affect common Union rules or alter their scope.
            
            
               (5)In accordance with Article 6a of the Protocol No 21 on the position of the United Kingdom and Ireland in respect of the area of freedom, security and justice, as annexed to the TEU and to the TFEU, the United Kingdom and Ireland are not bound by the rules laid down in the Agreement which relate to the processing of personal data when carrying out activities which fall within the scope of Chapter 4 (Judicial cooperation in criminal matters) or Chapter 5 (Police cooperation) of Title V of Part Three of the TFEU where the United Kingdom and Ireland are not bound by the rules which require compliance with the Agreement.  
            
            
               (6)In accordance with Articles 1 and 2 of Protocol 22 on the Position of Denmark annexed to the Treaty on European Union and the Treaty on the Functioning of the European Union, Denmark is not taking part in the adoption of this Decision and is not bound by the Agreement or subject to its application. 
            
            
               (7)The Agreement should be approved on behalf of the Union,
            
            
         
         
            
               HAS ADOPTED THIS DECISION: 
            
            
               Article 1
            
            
               The Agreement between the United States of America and the European Union on the protection of personal information relating to the prevention, investigation, detection, and prosecution of criminal offenses is hereby approved on behalf of the European Union. 
            
            
               The text of the Agreement is attached to this Decision. 
            
            
            
               Article 2
            
            
            
               The President of the Council shall designate the person empowered to proceed, on behalf of the Union, to give the notification provided for in Article 29(1) of the Agreement, in order to express the consent of the European Union to be bound by the Agreement.  
            
            
            
               Article 3
            
            
               This Decision shall enter into force on the day of its publication in the Official Journal of the European Union.
                  15
               
            
            
            
               Done at Brussels,
            
            
               
                     
                        
                        
                        For the Council
               
               
                     
                        
                        
                        The President
               
            
         
         
            
                  
                     (1)
                  Reports by the High Level Contact Group (HLCG) on information sharing and privacy and personal data protection, Brussels, 23 November 2009, 15851/09, JAI 822 DATAPROTECT 74 USA 102.
               
               
                  
                     (2)
                  Together with the adoption of the EU data protection reform and the new "EU-U.S. Privacy Shield" concerning data transfers in the commercial area, the conclusion of a meaningful and comprehensive Umbrella Agreement is a core element of the strategy set out in the Commission's Communication on Rebuilding Trust in EU-U.S. Data Flows (COM(20123) 846) of 27 November 2013, available at 
                  
                     http://ec.europa.eu/justice/data-protection/files/com_2013_846_en.pdf
                  
                  , as also reaffirmed in President Juncker's Political Guidelines, and in the Communication from the Commission to the European Parliament and the Council "Transatlantic Data Flows: Restoring Trust through Strong Safeguards", COM(2016) 117 final of 29 February 2016, available at: http://ec.europa.eu/justice/data-protection/files/privacy-shield-adequacy-communication_en.pdf. 
               
               
                  
                     (3)
                  The term "personal information" as used in the Umbrella Agreement is synonym to the EU concept pf "personal data". 
               
               
                  
                     (4)
                  Proposal for a Directive of the European Parliament and of the Council on the protection of individuals with regard to the processing of personal data by competent authorities for the purposes of prevention, investigation, detection or prosecution of criminal offences or the execution of criminal penalties, and the free movement of such data, COM/2012/010 final - 2012/0010 (COD), available at: http://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:52012PC0010&from=en
               
               
                  
                     (5)
                  Proposal for a Regulation of the European Parliament and of the Council on the protection of individuals with regard to the processing of personal data and on the free movement of such data (General Data Protection Regulation) COM(2012) 11 final 2012/0011 (COD), available at: http://ec.europa.eu/justice/data-protection/document/review2012/com_2012_11_en.pdf
               
               
                  
                     (6)
                  Agreement between the United States of America and the European Union on the use and transfer of passenger name records to the United States Department of Homeland Security, OJ of 11.8.2012, L 215/5. 
               
               
                  
                     (7)
                  Agreement between the European Union and the United States of America on the processing and transfer of Financial Messaging Data from the European Union to the United States for the purposes of the Terrorist Finance Tracking Program, OJ of 27.7.2010, L 195/5.
               
               
                  
                     (8)
                  The fourth recital in the Preamble indicates that the Umbrella Agreement shall not alter, condition or otherwise derogate from agreements in which it is established that they provide an adequate level of data protection, with the exception of the judicial redress provision in Article 19, which will also apply to them. This concerns the PNR and TFTP agreements.
               
               
                  
                     (9)
                  A "Covered Country" pursuant to the U.S. Judicial Redress Act is a country i) that has concluded with the U.S. an agreement which provides for appropriate privacy protections for information shared for law enforcement purposes (or which has effectively shared information for law enforcement purposes and has appropriate privacy protections for such shared information); ii) that permits the transfer of personal data for commercial purposes through an agreement with the U.S. or otherwise; iii) whose policies regarding the transfer of personal data for commercial purposes do not materially impede the national security interests of the United States. The designation of a country as "covered country" is carried out by the U.S. Attorney General.
               
               
                  
                     (10)
                  See § 57 and point BJ of the Resolution of 12 March 2014 on the US NSA surveillance programme, surveillance bodies in various Member States and their impact on EU citizens’ fundamental rights and on transatlantic cooperation in Justice and Home Affairs, (2013/2188(INI), available at http://www.europarl.europa.eu/sides/getDoc.do?pubRef=-//EP//TEXT+TA+P7-TA-2014-0230+0+DOC+XML+V0//EN
               
               
                  
                     (11)
                  Being a federal republic, there is a division of powers between the federal government and the government of the individual States (see also Article 5 (2) of the Umbrella Agreement in this respect).
               
               
                  
                     (12)
                  Consent of [date], OJ C[…], […], p. […].
               
               
                  
                     (13)
                  OJ …
               
               
                  
                     (14)
                  Directive of the European Parliament and of the Council on the protection of individuals with regard to the processing of personal data by competent authorities for the purposes of prevention, investigation, detection or prosecution of criminal offences or the execution of criminal penalties, and the free movement of such data, repealing Council Framework Decision 2008/977/JHA.  
               
               
                  
                     (15)
                  The date of entry into force of the Agreement for the European Union will be published in the Official Journal of the European Union by the General Secretariat of the Council.
               
            
      
    ---documentbreak--- 
      
         
               EUROPEAN COMMISSION
            Brussels, 29.4.2016
            COM(2016) 237 final
            ANNEX
            AGREEMENT BETWEEN THE UNITED STATES OF AMERICA AND THE EUROPEAN UNION ON THE PROTECTION OF PERSONAL INFORMATION RELATING TO THE PREVENTION, INVESTIGATION, DETECTION, AND PROSECUTION OF CRIMINAL OFFENSES
            accompanying
            Proposal for a Council Decision 
            on the conclusion, on behalf of the European Union, of an Agreement between the United States of America and the European Union on the protection of personal information relating to the prevention, investigation, detection, and prosecution of criminal offenses
            
               
         
         
            
               AGREEMENT BETWEEN THE UNITED STATES OF AMERICA AND 
            
            
               THE EUROPEAN UNION ON THE PROTECTION OF PERSONAL INFORMATION RELATING TO the prevention, Investigation, detection, and prosecution of criminal offenses
            
            
            
               TABLE OF CONTENTS
            
            
                  Preamble
            
            
                  Article 1: 
                     Purpose 
            
            
                  Article 2: 
                     Definitions 
            
            
                  Article 3:
                     Scope
            
            
                  Article
                     4:
                     Non-discrimination
            
            
               Article 5:
                     Effect of the Agreement 
            
            
                  Article 6:
                     Purpose and Use Limitations
            
            
                  Article 7:
                     Onward Transfer 
            
            
               Article 8:
                     Maintaining the Quality and Integrity of Information 
            
            
                  Article 9:
                     Information Security 
            
            
               Article 10:
                     Notification of an Information Security Incident 
            
            
               Article 11:
                     Maintaining Records 
            
            
               Article 12:
                     Retention Period 
            
            
                  Article 13:
                     Special Categories of Personal Information 
            
            
               Article 14: 
                     Accountability 
            
         
         
            
                  Article 15:
                     Automated Decisions 
            
            
                  Article 16:
                     Access 
            
            
               Article 17: 
                     Rectification 
            
            
               Article 18:
                     Administrative Redress 
            
            
               Article 19:
                     Judicial Redress 
            
            
               Article 20:
                     Transparency 
            
            
               Article 21:
                     Effective Oversight 
            
            
               Article 22:
                     Cooperation between Oversight Authorities 
            
            
                  Article 23:
                     Joint Review 
            
            
               Article 24: 
                     Notification
            
            
               Article 25:
                     Consultation
            
            
               Article 26 :
                     Suspension
            
            
               Article 27:
                     Territorial Application
            
            
               Article 28:
                     Duration 
            
            
               Article 29:
                     Entry into force and Termination
            
            
               
            
            
               Mindful that the United States and the European Union are committed to ensuring a high level of protection of personal information exchanged in the context of the prevention, investigation, detection, and prosecution of criminal offenses, including terrorism;
            
            
            
               Intending to establish a lasting legal framework to facilitate the exchange of information, which is critical to prevent, investigate, detect and prosecute criminal offenses, including terrorism, as a means of protecting their respective democratic societies and common values;
            
         
         
            
                
            
            
               Intending, in particular, to provide standards of protection for exchanges of personal information on the basis of both existing and future agreements between the US and the EU and its Member States, in the field of preventing, investigating, detecting, and prosecuting criminal offenses, including terrorism;
            
            
            
               Recognizing that certain existing agreements between the Parties concerning the processing of personal information establish that those agreements provide an adequate level of data protection within the scope of those agreements, the Parties affirm that this Agreement should not be construed to alter, condition, or otherwise derogate from those agreements; noting however, that the obligations established by Article 19 of this Agreement on judicial redress would apply with respect to all transfers that fall within the scope of this Agreement, and that this is without prejudice to any future review or modification of such agreements pursuant to their terms;
            
            
            
               Acknowledging both Parties’ longstanding traditions of respect for individual privacy including as reflected in the Principles on Privacy and Personal Data Protection for Law Enforcement Purposes elaborated by the EU-U.S. High Level Contact Group on Information Sharing and Privacy and Personal Data Protection, the Charter of Fundamental Rights of the European Union and applicable EU laws, the United States Constitution and applicable U.S. laws, and the Fair Information Practice Principles of the Organization for Economic Cooperation and Development; and
            
            
            
               Recognizing the principles of proportionality and necessity, and relevance and reasonableness, as implemented by the Parties in their respective legal frameworks;
            
            
            
               The United States of America and the European Union HAVE AGREED AS FOLLOWS:
            
            
               Article 1: Purpose of the Agreement 
            
            
               1. The purpose of this Agreement is to ensure a high level of protection of personal information and enhance cooperation between the United States and the European Union and its Member States, in relation to the prevention, investigation, detection or prosecution of criminal offenses, including terrorism.
            
            
               2. For this purpose, this Agreement establishes the framework for the protection of personal information when transferred between the United States, on the one hand, and the European Union or its Member States, on the other.
            
            
               3. This Agreement in and of itself shall not be the legal basis for any transfers of personal information.  A legal basis for such transfers shall always be required.
            
            
            
               Article 2: Definitions
            
            
               For purposes of this Agreement:
            
            
            
               1.“Personal information” means information relating to an identified or identifiable natural person.  An identifiable person is a person who can be identified, directly or indirectly, by reference to, in particular, an identification number or to one or more factors specific to his or her physical, physiological, mental, economic, cultural or social identity.
            
            
         
         
            
               2.“Processing of personal information” means any operation or set of operations involving collection, maintenance, use, alteration, organization or structuring, disclosure or dissemination, or disposition.
            
            
            
               3.“Parties” means the European Union and the United States of America. 
            
            
            
               4.“Member State” means a Member State of the European Union.
            
            
            
               5.“Competent Authority” means, for the United States, a U.S. national law enforcement authority responsible for the prevention, investigation, detection or prosecution of criminal offenses, including terrorism and, for the European Union, an authority of the European Union, and an authority of a Member State, responsible for the prevention, investigation, detection or prosecution of criminal offenses, including terrorism.
            
            
            
               Article 3: Scope 
            
            
               1. This Agreement shall apply to personal information transferred between the Competent Authorities of one Party and the Competent Authorities of the other Party, or otherwise transferred in accordance with an agreement concluded between the United States and the European Union or its Member States, for the prevention, detection, investigation and prosecution of criminal offences, including terrorism. 
            
            
               2. This Agreement does not affect, and is without prejudice to, transfers or other forms of cooperation between the authorities of the Member States and of the United States other than those referred to in Article 2(5), responsible for safeguarding national security.
            
            
            
               Article 4:  Non-Discrimination 
            
            
               Each Party shall comply with its obligations under this Agreement for the purpose of protecting personal information of its own nationals and the other Party’s nationals regardless of their nationality, and without arbitrary and unjustifiable discrimination.
            
            
            
            
            
               Article 5:  Effect of the Agreement 
            
            
               1. This Agreement supplements, as appropriate, but does not replace, provisions regarding the protection of personal information in international agreements between the Parties, or the United States and Member States that address matters within the scope of this Agreement.
            
            
               2. The Parties shall take all necessary measures to implement this Agreement, including, in particular, their respective obligations regarding access, rectification and administrative and judicial redress for individuals provided herein. The protections and remedies set forth in this Agreement shall benefit individuals and entities in the manner implemented in the applicable domestic laws of each Party. For the United States, its obligations shall apply in a manner consistent with its fundamental principles of federalism.
            
         
         
            
               3. By giving effect to paragraph 2, the processing of personal information by the United States, or the European Union and its Member States, with respect to matters falling within the scope of this Agreement, shall be deemed to comply with their respective data protection legislation restricting or conditioning international transfers of personal information, and no further authorization under such legislation shall be required.
            
            
            
               Article 6: Purpose and Use Limitations
            
            
               1. The transfer of personal information shall be for specific purposes authorized by the legal basis for the transfer as set forth in Article 1.    
            
            
               2. The further processing of personal information by a Party shall not be incompatible with the purposes for which it was transferred. Compatible processing includes processing pursuant to the terms of existing international agreements and written international frameworks for the prevention, detection, investigation or prosecution of serious crimes. All such processing of personal information by other national law enforcement, regulatory or administrative authorities shall respect the other provisions of this Agreement.
            
            
               3. This Article shall not prejudice the ability of the transferring Competent Authority to impose additional conditions in a specific case to the extent the applicable legal framework for transfer permits it to do so. Such conditions shall not include generic data protection conditions, that is, conditions imposed that are unrelated to the specific facts of the case.  If the information is subject to conditions, the receiving Competent Authority shall comply with them. The Competent Authority providing the information may also require the recipient to give information on the use made of the transferred information.
            
            
            
               4. Where the United States, on the one hand, and the European Union or a Member State on the other, conclude an agreement on the transfer of personal information other than in relation to specific cases, investigations or prosecutions, the specified purposes for which the information is transferred and processed shall be further set forth in that agreement.
            
            
               5. The Parties shall ensure under their respective laws that personal information is processed in a manner that is directly relevant to and not excessive or overbroad in relation to the purposes of such processing.  
            
            
            
               Article 7:  Onward Transfer 
            
            
               1. Where a Competent Authority of one Party has transferred personal information relating to a specific case to a Competent Authority of the other Party, that information may be transferred to a State not bound by the present Agreement or international body only where the prior consent of the Competent Authority originally sending that information has been obtained. 
            
            
               2. When granting its consent to a transfer under paragraph 1, the Competent Authority originally transferring the information shall take due account of all relevant factors, including the seriousness of the offence, the purpose for which the data is initially transferred and whether the State not bound by the present Agreement or international body in question ensures an appropriate level of protection of personal information. It may also subject the transfer to specific conditions. 
            
            
               3. Where the United States, on the one hand, and the European Union or a Member State on the other, conclude an agreement on the transfer of personal information other than in relation to specific cases, investigations or prosecutions, the onward transfer of personal information may only take place in accordance with specific conditions set forth in the agreement that provide due justification for the onward transfer. The agreement shall also provide for appropriate information mechanisms between the Competent Authorities.
            
            
               4. Nothing in this Article shall be construed as affecting any requirement, obligation or practice pursuant to which the prior consent of the Competent Authority originally transferring the information must be obtained before the information is further transferred to a State or body bound by this Agreement, provided that the level of data protection in such State or body shall not be the basis for denying consent for, or imposing conditions on, such transfers.
            
            
            
               Article 8: Maintaining Quality and Integrity of Information  
            
            
               The Parties shall take reasonable steps to ensure that personal information is maintained with such accuracy, relevance, timeliness and completeness as is necessary and appropriate for lawful processing of the information.  For this purpose, the Competent Authorities shall have in place procedures, the object of which is to ensure the quality and integrity of personal information, including the following:
            
            
                  (a)  the measures referred to in Article 17;
            
            
               (b) where the transferring Competent Authority becomes aware of  significant doubts as to the relevance, timeliness, completeness or accuracy of such personal information or an assessment it has transferred, it shall, where feasible, advise the receiving Competent Authority thereof;
            
         
         
            
               (c) where the receiving Competent Authority becomes aware of significant doubts as to the relevance, timeliness, completeness or accuracy of personal information received from a governmental authority, or of an assessment made by the transferring Competent Authority of the accuracy of information or the reliability of a source, it shall, where feasible, advise the transferring Competent Authority thereof.
            
            
            
               Article 9: Information Security 
            
            
               The Parties shall ensure that they have in place appropriate technical, security and organizational arrangements for the protection of personal information against all of the following: 
            
            
                  (a)  accidental or unlawful destruction;
            
            
                  (b)  accidental loss; and 
            
            
                  (c)  unauthorized disclosure, alteration, access, or other processing.
            
            
               Such arrangements shall include appropriate safeguards regarding the authorization required to access personal information.
            
            
            
               Article 10: Notification of an information security incident 
            
            
               1. Upon discovery of an incident involving accidental loss or destruction, or unauthorized access, disclosure, or alteration of personal information, in which there is a significant risk of damage, the receiving Competent Authority shall promptly assess the likelihood and scale of damage to individuals and to the integrity of the transferring Competent Authority’s program, and promptly take appropriate action to mitigate any such damage.  
            
            
               2. Action to mitigate damage shall include notification to the transferring Competent Authority.  However, notification may:
            
            
                  a) include appropriate restrictions as to the further transmission of the notification; 
            
            
                  b) be delayed or omitted when such notification may endanger national security; 
            
            
                  c) be delayed when such notification may endanger public security operations.
            
            
               3. Action to mitigate damage shall also include notification to the individual, where appropriate given the circumstances of the incident, unless such notification may endanger:
            
            
                  a) public or national security;  
            
            
                  b) official inquiries, investigations or proceedings;
            
            
                  c) the prevention, detection, investigation, or prosecution of criminal offenses;
            
            
                  d) rights and freedoms of others, in particular the protection of victims and witnesses.
            
         
         
            
               4. The Competent Authorities involved in the transfer of the personal information may consult concerning the incident and the response thereto.
            
            
            
               Article 11: Maintaining Records 
            
            
               1. The Parties shall have in place effective methods of demonstrating the lawfulness of processing of personal information, which may include the use of logs, as well as other forms of records.
            
            
               2. The Competent Authorities may use such logs or records for maintaining orderly operations of the databases or files concerned, to ensure data integrity and security, and where necessary to follow backup procedures.
            
            
            
               Article 12: Retention Period 
            
            
               1. The Parties shall provide in their applicable legal frameworks specific retention periods for records containing personal information, the object of which is to ensure that personal information is not retained for longer than is necessary and appropriate.  Such retention periods shall take into account the purposes of processing, the nature of the data and the authority processing it, the impact on relevant rights and interests of affected persons, and other applicable legal considerations.
            
            
               2. Where the United States, on the one hand, and the European Union or a Member State on the other, conclude an agreement on the transfer of personal information other than in relation to specific cases, investigations or prosecutions, such agreement will include a specific and mutually agreed upon provision on retention periods.
            
            
               3. The Parties shall provide procedures for periodic review of the retention period with a view to determining whether changed circumstances require further modification of the applicable period.
            
            
               4. The Parties shall publish or otherwise make publicly available such retention periods.
            
            
            
               Article 13: Special Categories of Personal Information  
            
            
               1. Processing of personal information revealing racial or ethnic origin, political opinions or religious or other beliefs, trade union membership or personal information concerning health or sexual life shall only take place under appropriate safeguards in accordance with law. Such appropriate safeguards may include: restricting the purposes for which the information may be processed, such as allowing the processing only on a case by case basis; masking, deleting or blocking the information after effecting the purpose for which it was processed; restricting personnel permitted to access the information; requiring specialized training to personnel who access the information; requiring supervisory approval to access the information; or other protective measures. These safeguards shall duly take into account the nature of the information, particular sensitivities of the information, and the purpose for which the information is processed.
            
            
               2. Where the United States, on the one hand, and the European Union or a Member State on the other, conclude an agreement on the transfer of personal information other than in relation to specific cases, investigations or prosecutions, such agreement will further specify the standards and conditions under which such information can be processed, duly taking into account the nature of the information and the purpose for which it is used.
            
            
            
               Article 14: Accountability 
            
            
               1. The Parties shall have in place measures to promote accountability for processing personal information within the scope of this Agreement by their Competent Authorities, and any other of their authorities to which personal information has been transferred.  Such measures shall include notification of the safeguards applicable to transfers of personal information under this Agreement, and of the conditions that may have been imposed by the transferring Competent Authority pursuant to Article 6(3). Serious misconduct shall be addressed through appropriate and dissuasive criminal, civil or administrative sanctions.
            
            
               2. The measures set out in paragraph 1 shall include, as appropriate, discontinuation of transfer of personal information to authorities of constituent territorial entities of the Parties not covered by this Agreement that have not effectively protected personal information, taking into account the purpose of this Agreement, and in particular the purpose and use limitations and onward transfer provisions of this Agreement.
            
            
               3. In case of allegations of improper implementation of this Article, a Party may request the other Party to provide relevant information, including, where appropriate, regarding the measures taken under this Article.
            
         
         
            
            
               Article 15: Automated Decisions  
            
            
               Decisions producing significant adverse actions concerning the relevant interests of the individual may not be based solely on the automated processing of personal information without human involvement, unless authorized under domestic law, and with appropriate safeguards that include the possibility to obtain human intervention.
            
            
            
               Article 16: Access 
            
            
               1. The Parties shall ensure that any individual is entitled to seek access to his or her personal information and, subject to the restrictions set forth in paragraph 2, to obtain it.  Such access shall be sought and obtained from a Competent Authority in accordance with the applicable legal framework of the State in which relief is sought.
            
            
               2. The obtaining of such information in a particular case may be subject to reasonable restrictions provided under domestic law, taking into account legitimate interests of the individual concerned, so as to:
            
            
                  a) protect the rights and freedoms of others, including their privacy;
            
            
                  b) safeguard public and national security;
            
            
                  c) protect law enforcement sensitive information;
            
            
                  d) avoid obstructing official or legal inquiries, investigations or proceedings;
            
            
               e) avoid prejudicing the prevention, detection, investigation or prosecution of criminal offenses or the execution of criminal penalties;
            
            
               f) otherwise protect interests provided for in legislation regarding freedom of information and public access to documents.
            
            
               3. Excessive expenses shall not be imposed on the individual as a condition to access his or her personal information. 
            
            
               4. An individual is entitled to authorize, where permitted under applicable domestic law, an oversight authority or other representative to request access on his or her behalf.  
            
            
               5. If access is denied or restricted, the requested Competent Authority will, without undue delay, provide to the individual, or to his or her duly authorized representative as set forth in paragraph 4, the reasons for the denial or restriction of access.
            
            
            
               Article 17: Rectification 
            
            
               1. The Parties shall ensure that any individual is entitled to seek correction or rectification of his or her personal information that he or she asserts is either inaccurate or has been improperly processed. Correction or rectification may include supplementation, erasure, blocking or other measures or methods for addressing inaccuracies or improper processing.  Such correction or rectification shall be sought and obtained from a Competent Authority in accordance with the applicable legal framework of the State in which relief is sought.
            
            
               2. Where the receiving Competent Authority concludes following:
            
         
         
            
                  a) a request under paragraph 1;
            
            
                  b) notification by the provider; or
            
            
                  c) its own investigations or inquiries;
            
            
               that information it has received under this Agreement is inaccurate or has been improperly processed, it shall take measures of supplementation, erasure, blocking or other methods of correction or rectification, as appropriate. 
            
            
               3. An individual is entitled to authorize, where permitted under applicable domestic law, an oversight authority or other representative to seek correction or rectification on his or her behalf.  
            
            
               4. If correction or rectification is denied or restricted, the requested Competent Authority will, without undue delay, provide to the individual, or to his or to her duly authorized representative as set forth in paragraph 3, a response setting forth the basis for the denial or restriction of correction or rectification.
            
            
            
               Article 18: Administrative Redress 
            
            
               1. The Parties shall ensure that any individual is entitled to seek administrative redress where he or she believes that his or her request for access pursuant to Article 16 or rectification of inaccurate information or improper processing pursuant to Article 17 has been improperly denied.  Such redress shall be sought and obtained from a Competent Authority in accordance with the applicable legal framework of the State in which relief is sought.
            
            
               2. An individual is entitled to authorize, where permitted under applicable domestic law, an oversight authority or other representative to seek administrative redress on his or her behalf.  
            
            
               3. The Competent Authority from which relief is sought shall carry out the appropriate inquiries and verifications and without undue delay shall respond in written form, including through electronic means, with the result, including the ameliorative or corrective action taken where applicable.  Notice of the procedure for seeking any further administrative redress shall be as provided for in Article 20.
            
            
            
               Article 19: Judicial Redress 
            
            
                1. The Parties shall provide in their applicable legal frameworks that, subject to any requirements that administrative redress first be exhausted, any citizen of a Party is entitled to seek judicial review with regard to:
            
            
               a) denial by a Competent Authority of access to records containing his or her personal information; 
            
            
               b) denial by a Competent Authority of amendment of records containing his or her personal information; and 
            
            
               c) unlawful disclosure of such information that has been willfully or intentionally made, which shall include the possibility of compensatory damages.
            
            
               2. Such judicial review shall be sought and obtained in accordance with the applicable legal framework of the State in which relief is sought.
            
            
               3. Paragraphs 1 and 2 are without prejudice to any other judicial review available with respect to the processing of an individual’s personal information under the law of the State in which relief is requested.
            
            
               4. In the event of the suspension or termination of the Agreement, articles 26(2) or 29(3) shall not create a basis for judicial redress that is no longer available under the law of the Party concerned.
            
         
         
            
            
               Article 20: Transparency 
            
            
               1. The Parties shall provide notice to an individual, as to his or her personal information, which notice may be effected by the Competent Authorities through publication of general notices or through actual notice, in a form and at a time provided for by the law applicable to the authority providing notice, with regard to the:
            
            
                     (a) purposes of processing of such information by that authority;
            
            
                    (b) purposes for which the information may be shared with other authorities; 
            
            
                    (c) laws or rules under which such processing takes place;
            
            
                    (d) third parties to whom such information is disclosed; and
            
            
                    (e) access, correction or rectification, and redress available.
            
            
               2. Such notice requirement is subject to the reasonable restrictions under domestic law with respect to the matters set forth in Article 16(2) (a) through (f).
            
            
            
            
               Article 21: Effective Oversight 
            
            
               1. The Parties shall have in place one or more public oversight authorities that:
            
            
               (a) exercise independent oversight functions and powers, including review, investigation and intervention, where appropriate on their own initiative;
            
            
               (b) have the power to accept and act upon complaints made by individuals relating to the measures implementing this Agreement; and
            
            
               (c) have the power to refer violations of law related to this Agreement for prosecution or disciplinary action when appropriate.
            
            
               2. The European Union shall provide for oversight under this Article through its data protection authorities and those of the Member States.  
            
            
               3. The United States shall provide for oversight under this Article cumulatively through more than one authority, which may include, inter alia, inspectors general, chief privacy officers, government accountability offices, privacy and civil liberties oversight boards, and other applicable executive and legislative privacy or civil liberties review bodies.
            
            
            
               Article 22: Cooperation between oversight authorities 
            
         
         
            
               1. Consultations between authorities conducting oversight under Article 21 shall take place as appropriate with respect to carrying out the functions in relation to this Agreement, with a view towards ensuring effective implementation of the provisions of Articles 16, 17, and 18.
            
            
               2. The Parties shall establish national contact points that will assist with the identification of the oversight authority to be addressed in a particular case.
            
            
            
               Article 23: Joint Review 
            
            
               1. The Parties shall conduct periodic joint reviews of the policies and procedures that implement this Agreement and of their effectiveness.  Particular attention in the joint reviews shall be paid to the effective implementation of the protections under Article 14 on accountability, Article 16 on access, Article 17 on rectification, Article 18 on administrative redress, and Article 19 on judicial redress.
            
            
               2. The first joint review shall be conducted no later than three years from the date of entry into force of this Agreement and thereafter on a regular basis.  The Parties shall jointly determine in advance the modalities and terms thereof and shall communicate to each other the composition of their respective delegations, which shall include representatives of the public oversight authorities referred to in Article 21 on effective oversight, and of law enforcement and justice authorities.  The findings of the joint review will be made public.
            
            
               3. Where the Parties or the United States and a Member State have concluded another agreement, the subject matter of which is also within the scope of this Agreement, which provides for joint reviews, such joint reviews shall not be duplicated and, to the extent relevant, their findings shall be made part of the findings of the joint review of this Agreement.
            
            
               Article 24: Notification 
            
            
               1. The United States shall notify the European Union of any designation made by U.S. authorities in relation to Article 19, and any modifications thereto.
            
            
               2. The Parties shall make reasonable efforts to notify each other regarding the enactment of any laws or the adoption of regulations that materially affect the implementation of this Agreement, where feasible before they become effective.
            
            
            
               Article 25:   Consultation
            
            
               Any dispute arising from the interpretation or application of this Agreement shall give rise to consultations between the Parties with a view to reaching a mutually agreeable resolution.
            
            
            
               Article 26:  Suspension
            
            
               1. In the event of a material breach of this Agreement, either Party may suspend this Agreement in whole or in part by written notification to the other Party through diplomatic channels.  Such written notification shall not be made until after the Parties have engaged in a reasonable period of consultation without reaching a resolution and suspension shall take effect twenty days from the date of receipt of such notification. Such suspension may be lifted by the suspending Party upon written notification to the other Party. The suspension shall be lifted immediately upon receipt of such notification. 
            
            
               2. Notwithstanding any suspension of this Agreement, personal data falling within the scope of this Agreement and transferred prior to its suspension shall continue to be processed in accordance with this Agreement.
            
            
            
               Article 27:  Territorial application
            
            
         
         
            
                     
                        1. This Agreement shall only apply to Denmark, the United Kingdom, or Ireland if the European Commission notifies the United States in writing that Denmark, the United Kingdom, or Ireland has decided that this Agreement applies to its State.
                     
                     
                     
                        2. If the European Commission notifies the United States before the entry into force of this Agreement that this Agreement will apply to Denmark, the United Kingdom, or Ireland, this Agreement shall apply to such States from the date of entry into force of this Agreement.
                     
                     
                     
                        3. If the European Commission notifies the United States after the entry into force of this Agreement that it applies to Denmark, the United Kingdom, or Ireland, this Agreement shall apply to such State on the first day of the month following receipt of the notification by the United States.
                     
                  
               
            
               Article 28:  Duration of the Agreement
            
            
               This Agreement is concluded for an unlimited duration.
            
            
            
               Article 29: Entry into force and Termination 
            
            
               1. This Agreement shall enter into force on the first day of the month following the date on which the Parties have exchanged notifications indicating that they have completed their internal procedures for entry into force.
            
            
               2. Either Party may terminate this Agreement by written notification to the other Party through diplomatic channels.  Such termination shall take effect thirty days from the date of receipt of such notification.
            
            
               3. Notwithstanding any termination of this Agreement, personal information falling within the scope of this Agreement and transferred prior to its termination shall continue to be processed in accordance with this Agreement.
            
            
               IN WITNESS WHEREOF, the undersigned Plenipotentiaries have signed this Agreement.
            
            
               Done at _ this _ day of _ 201_, in two originals, in the English language. Pursuant to EU law, this Agreement shall also be drawn up by the EU in the Bulgarian, Croatian, Czech, Danish, Dutch, Estonian, Finnish, French, German, Greek, Hungarian, Italian, Irish, Latvian, Lithuanian, Maltese, Polish, Portuguese, Romanian, Slovak, Slovenian, Spanish and Swedish languages. These additional language versions can be authenticated by an exchange of diplomatic notes between the United States and the European Union. In the case of divergence between authentic language versions, the English language shall prevail.