Data Protection in Israel

Transfer in Israel

The transfer of Personal Data abroad is subject to the Privacy Protection Regulations (Transfer of Data to Databases Abroad), 5761-2001 ("Transfer Regs"), pursuant to which Personal Data may be transferred abroad only to the extent that:

  • the laws of the country to which the data is transferred ensure a level of protection, no lesser than the level of protection of data provided for by Israeli Law; or
  • one of the following conditions is met:
    • the data subject has consented to the transfer;
    • the consent of the data subject cannot be obtained and the transfer is vital to the protection of his or her health or physical wellbeing;
    • the data is transferred to a corporation under the control of the owner of the database from which the data is transferred, provided that such corporation has guaranteed the protection of privacy after the transfer;
    • the data is transferred to an entity bound by an agreement with the database owner, to comply with the conditions governing the use of the data as applicable under Israeli Laws, mutatis mutandis;
    • data was made available to the public or was opened for public inspection by legal authority;
    • transfer of data is vital to public safety or security;
    • the transfer of data is required by Israeli Law; or
    • data is transferred to a database in a country:
      • which is a party to the European Convention for the Protection of Individuals with Regard to Automatic Processing of Sensitive Data; or
      • which receives data from Member States of the European Community, under the same terms of acceptance1; or
      • in relation to which the Registrar of Databases announced, in an announcement published in the Official Gazette (Reshumot), that it has an authority for the protection of privacy, after reaching an arrangement for cooperation with that authority.

When transferring personal data abroad, the database owner is required to enter into a data transfer agreement with the data recipient, pursuant to which the recipient undertakes to apply adequate measures to ensure the privacy of the data subjects and guarantees that the data shall not be further transferred to any third party.

The foregoing data transfer agreement must also comply with additional restrictions, to the extent that the recipient provides outsourcing services, as set forth in the Outsourcing Guidelines.

On January 31, 2011, the European Commission, on the basis of Article 25(6) of directive 95/46/EC, determined that the State of Israel ensures an adequate level of protection with regard to automated processing of personal data.

On 15 January 2024 the EU Commission has issued a “Report from the Commission to the European Parliament and the Council on the First Review of the Functioning of the Adequacy Decisions Adopted Pursuant to Article 25(6) Of Directive 95/46/EC”, in which it was announced that Israel’s adequacy status from January 31, 2011, had been renewed.

Additionally, the transfer of databases is subject to the IPA Draft Guidelines No. 3/2017, which under certain circumstances, such as database recipient having a conflict of interest, might require opt-in consents of data subjects as a condition to transferring databases.


On January 4, 2022, the IPA published a Draft Guideline: Interpretation of Section 3 of Transfer Regs, clarifying the prohibition on onward transfer of Personal Data by a data recipient stipulating that where the following applies, such onward transfer may be permitted: (i) written consent of the database owner; (ii) the transfer of the information to a third party is performed lawfully, that is, based on the consent of the data subjects or is required by law; and (iii) If the information was transferred directly from Israel to such third party, such transfer itself would comply with the conditions set forth above.

On November 29, 2022, the Ministry of Justice published for public comments draft regulations on data transferred from the EEA to Israel which include additional data subject rights such as: right to be forgotten and restrictions on data retention, as part of Israel's deference to maintain its adequacy level of protection received from the EU. Timing of the regulations entering into force is dependent on the new government being formed.

On May 7, 2023, the Israeli Ministry of Justice published Privacy Protection Regulations (Instructions for Data that was Transferred to Israel from the European Economic Area), 5783-2023, which establish obligations (such as: obligation to delete Personal Data, limit the retention of Personal Data that is not necessary, accuracy and notification obligations) that will apply to Personal Data transferred to Israel from the European Economic Area (EU, Iceland, Norway and Liechtenstein). Furthermore, information regarding a person's origin and information regarding membership in a labor organization will be considered Sensitive Data.

On September 14, 2023, the IPA published Manual: Contracting with Outsourcing Providers – Section 15 to the Data Security Regs, which clarifies the manner in which companies shall contract with their outsourcing providers. The manual specifies issues to be included in the binding agreement between the company and the outsourcing provider, and it includes two appendices for use by the parties: an auxiliary questionnaire for checking the information security aspects of the outsourcing provider, and a proposed questionnaire to determine the method of performing the periodic control of the outsourcing provider.

Footnotes

1. Following the decision of the ECJ in Case C362/14 Maximillian Schrems v Data Protection Commissioner, IPA issued a statement on October 15, 2015, according to which US safe harbour certified entities would not fall under the foregoing condition, without derogating from all other conditions. Similarly following the decision of the CJEH in the Case C-311/18 Data Protection Commissioner v Facebook Ireland Limited and Maximillian Schrems, IPA issued a statement on September 29, 2020, according to which US privacy shield certified entities would not fall under the foregoing condition, without derogating from all other conditions.

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