1/158
Looks like no tags are added yet.
Name | Mastery | Learn | Test | Matching | Spaced |
---|
No study sessions yet.
Commission
Shall refer to the National Privacy Commission created by virtue of this Act.
Consent of the Data Subject
Refers to any freely given, specific, informed indication of will, whereby the data subject agrees to the collection and processing of personal information about and/or relating to him or her. Consent shall be evidenced by written, electronic or recorded means. It may also be given on behalf of the data subject by an agent specifically authorized by the data subject to do so.
True
(True or False) Consent shall be evidenced by written, electronic or recorded means. It may also be given on behalf of the data subject by an agent specifically authorized by the data subject to do so.
Data Subject
Refers to an individual whose personal information is processed.
Direct Marketing
Refers to communication by whatever means of any advertising or marketing material which is directed to particular individuals.
Filing System
Refers to any act of information relating to natural or juridical persons to the extent that, although the information is not processed by equipment operating automatically in response to instructions given for that purpose, the set is structured, either by reference to individuals or by reference to criteria relating to individuals, in such a way that specific information relating to a particular person is readily accessible.
Information and Communications System
Refers to a system for generating, sending, receiving, storing or otherwise processing electronic data messages or electronic documents and includes the computer system or other similar device by or which data is recorded, transmitted or stored and any procedure related to the recording, transmission or storage of electronic data, electronic message, or electronic document.
Personal Information Controller
Refers to a person or organization who controls the collection, holding, processing or use of personal information, including a person or organization who instructs another person or organization to collect, hold, process, use, transfer or disclose personal information on his or her behalf.
Personal Information Controller
The term excludes:
1. A person or organization who performs such functions as instructed by another person or organization; and
2. An individual who collects, holds, processes or uses personal information in connection with the individual's personal, family or household affairs.
Personal Information Processor
Refers refers to any natural or juridical person qualified to act as such under this Act to whom a personal information controller may outsource the processing of personal data pertaining to a data subject.
Applicability of the Data Privacy Act
The Act shall be applicable to:
a. The processing of all types of personal information.
b. To any natural and juridical person involved in personal information processing including those personal information controllers and processors who, although not found or established in the Philippines, use equipment that are located in the Philippines, or those who maintain an office, branch or agency in the Philippines subject to the immediately succeeding paragraph.
True
(True or False) The Data Privacy Act shall also apply to any natural or juridical person person involved in personal information processing including those personal information controllers and processors who, although not found or established in the Philippines, use equipment that are located in the Philippines, or those who maintain an office, branch or agency in the Philippines subject to the immediately succeeding paragraph.
Inapplicability of the Data Privacy Act
The Act does not apply to:
1. Information about any individual who is or was an officer or employee of a government institution that relates to the position or functions of the individual, including:
a. The fact that the individual is or was an officer or employee of the government institution;
b. The title, business address and office telephone number of the individual;
c. The classification, salary range and responsibilities of the position held by the individual; and
d. The name of the individual on a document prepared by the individual in the course of employment with the government;
Inapplicability of the Data Privacy Act
The Act does not apply to:
2. Information about an individual who is or was performing service under contract for a government institution that relates to the services performed, including the terms of the contract, and the name of the individual given in the course of the performance of those services;
Inapplicability of the Data Privacy Act
The Act does not apply to:
3. Information relating to any discretionary benefit of a financial nature such as the granting of a license or permit given by the government to an individual, including the name of the individual and the exact nature of the benefit;
Inapplicability of the Data Privacy Act
The Act does not apply to:
4. Personal information processed for journalistic, artistic, literary or research purposes;
Inapplicability of the Data Privacy Act
The Act does not apply to:
5. Information necessary in order to carry out the functions of public authority which includes the processing of personal data for the performance by the independent, central monetary authority and law enforcement and regulatory agencies of their constitutionally and statutorily mandated functions. No amendments or repeal to the following laws:
a. Republic Act No. 1405, otherwise known as the Secrecy of Bank Deposits Act;
b. Republic Act No. 6426, otherwise known as the Foreign Currency Deposit Act; and
c. Republic Act No. 9510, otherwise known as the Credit Information System Act (CISA);
Inapplicability of the Data Privacy Act
The Act does not apply to:
6. Information necessary for banks and other financial institutions under the jurisdiction of the independent, central monetary authority or Bangko Sentral ng Pilipinas to comply with the CISA and Republic Act No. 9160, as amended, otherwise known as the Anti-Money Laundering Act and other applicable laws;
Inapplicability of the Data Privacy Act
The Act does not apply to:
7. Personal information originally collected from residents of foreign jurisdictions in accordance with the laws of those foreign jurisdictions, including any applicable data privacy laws, which is being processed in the Philippines.
Protection Afforded to Journalists and Their Sources
Aims to afford publishers, editors or duly accredited reporters of any newspaper, magazine or periodical of general circulation protection from being compelled to reveal the source of any news report or information appearing in said publication which was related in any confidence to such publisher, editor, or reporter.
Extraterritorial Application
The Data Privacy Act applies to an act done or practice engaged in and outside of the Philippines by an entity if:
1. The act, practice or processing relates to personal information about a Philippine citizen or a resident;
Extraterritorial Application
The Data Privacy Act applies to an act done or practice engaged in and outside of the Philippines by an entity if:
2. The entity has a link with the Philippines, and the entity is processing personal information in the Philippines or even if the processing is outside the Philippines as long as it is about Philippine citizens or residents such as, but not limited to, the following:
a. A contract is entered in the Philippines;
b. A juridical entity unincorporated in the Philippines but has central management and control in the country; and
c. An entity that has a branch, agency, office or subsidiary in the Philippines and the parent or affiliate of the Philippine entity has access to personal information;
Extraterritorial Application
The Data Privacy Act applies to an act done or practice engaged in and outside of the Philippines by an entity if:
3. The entity has other links in the Philippines such as, but not limited to:
a. The entity carries on business in the Philippines; and
b. The personal information was collected or held by an entity in the Philippines.
National Privacy Commission or Data Privacy Commission
This commission was created to administer and implement the provisions of the Data Privacy Act and to monitor and ensure compliance of the country with international standards set for data protection.
National Privacy Commission or Data Privacy Commission
Its functions include:
1. Ensure compliance of personal information controllers with the provisions of this Act;
2 Receive complaints, institute investigations, facilitate or enable settlement of complaints through the use of alternative dispute resolution processes, adjudicate, award indemnity on matters affecting any personal information, prepare reports on disposition of complaints and resolution of any investigation it initiates, and, in cases it deems appropriate, publicize any such report: Provided, That in resolving any complaint or investigation (except where amicable settlement is reached by the parties), the Commission shall act as a collegial body. For this purpose, the Commission may be given access to personal information that is subject of any complaint and to collect the information necessary to perform its functions under this Act;
3. Issue cease and desist orders, impose a temporary or permanent ban on the processing of personal information, upon finding that the processing will be detrimental to national security and public interest;
National Privacy Commission or Data Privacy Commission
Its functions include:
4. Compel or petition any entity, government agency or instrumentality to abide by its orders or take action on a matter affecting data privacy;
5. Monitor the compliance of other government agencies instrumentalities on their security and technical measures and recommend the necessary action in order to meet minimum standards for protection of personal information pursuant to this Act;
6. Coordinate with other government agencies and the private sector on efforts to formulate and implement plans and policies to strengthen the protection of personal information in the country;
7. Publish on a regular basis a guide to all laws relating to data protection;
8. Publish a compilation of agency system of records and notices, including index and other finding aids;
National Privacy Commission or Data Privacy Commission
Its functions include:
9. Recommend to the Department of Justice (DOJ) the imposition of penalties provided under the Act;
prosecution voluntarily adhered to by personal information and controllers.
10. Review, approve, reject or require modification of privacy codes Provided, That the privacy codes shall adhere to the underlying data privacy principles embodied in this Act: Provided, further, That such privacy codes may include private dispute resolution mechanisms for complaints against any participating personal information controller. For this purpose, the Commission shall consult with relevant regulatory agencies in the formulation and administration of privacy codes applying the standards set out in this Act, with respect to the persons, entities business activities and business sectors that said regulatory bodies are authorized to principally regulate pursuant to the law: Provided finally. That the Commission may review such privacy codes and require changes thereto for purposes of complying with the Data Privacy Act.
11. Provide assistance on matters relating to privacy or data protection at the request of a national or local agency, a private entity or any person;
National Privacy Commission or Data Privacy Commission
Its functions include:
12. Comment on the implication on data privacy of proposed national or local statutes, regulations or procedures, issue advisory opinions and interpret the provisions of this Act and other data privacy laws;
13. Propose legislation, amendments or modifications to Philippine laws on privacy or data protection as may be necessary;
14. Ensure proper and effective coordination with data privacy regulators in other countries and private accountability agents, participate in international and regional initiatives for data privacy protection;
15. Negotiate and contract with other data privacy authorities of other countries for cross-border application and implementation of respective privacy laws;
16. Assist Philippine companies doing business abroad to respond to foreign privacy or data protection laws and regulations; and
17. Generally perform such acts as may be necessary to facilitate cross-border enforcement of data privacy protection.
Confidentiality
The Commission shall ensure at all times the confidentiality of any personal information that comes to its knowledge and possession.
Organizational Structure of the Commission
The Commissioner shall be attached to the Department of Information and Communications Technology (DICT) and shall be headed by a Privacy Commissioner, who shall also act as Chairman of the Commission
Privacy Commissioner
He shall be the Chairman of the National Privacy Commission.
Privacy Commissioner
Shall enjoy the benefits, privileges and emoluments equivalent to rank of Secretary.
Privacy Commissioner
Shall be assisted by two (2) Deputy Privacy Commissioners:
a. One for Data Processing Systems
b. One for Policies and Planning
Deputy Privacy Commissioners for Data Processing and Policies and Planning
These persons shall enjoy the benefits, privileges, and emoluments equivalent to the rank of Undersecretary.
President of the Philippines
Shall be responsible for appointment of the Privacy Commissioner and the two (2) Deputy Commissioners.
Three (3) Years and May be Reappointed for Another Term of Three (3) Years
The terms of the Privacy Commissioner and the two (2) Deputy Commissioners.
Qualifications of the Privacy Commissioner
Such qualifications include:
a. At least thirty-five (35) years of age.
b. Of good moral character, unquestionable integrity and known probity.
c. A recognized expert in the field of information technology and data privacy.
True
(True or False) The Privacy Commissioner and the two Deputy Commissioners, or any person acting on their behalf or under their direction, shall not be civilly liable for acts done in good faith in the performance of their duties. However, he or she shall be liable for willful or negligent acts done by him or her which are contrary to law, morals, public policy and good customs even if he or she acted under orders or instructions of superiors.
True
(True or False) In case a lawsuit is filled against such official on the subject of the performance of his or her duties, where such performance is lawful, he or she shall be reimbursed by the Commission for reasonable costs of litigation.
Secretariat
Majority of the members must have served for at least five (5) years in any agency of the government that is involved in the processing of personal information including, but not limited to:
* SSS
* LTO
* BIR
*PHIC
*COMELEC
*DFA
*DOJ
*Philpost
At least Five (5) Years
The number of years the members of the Secretariat must serve in any agency of the government.
Principle of Proportionality
The principle that states that the Processing of Personal data shall be adequate, relevant, suitable, necessary, and not excessive in relation to a declared and specified purpose. Personal Data shall be processed by the Company only if the purpose of the Processing could not reasonably be fulfilled by other means.
Principle of Legitimate Purpose
The principle that states that the Processing of Personal Data by the Company shall be compatible with a declared and specified purpose which must not be contrary to law, morals, or public policy.
Principle of Transparency
The principle that states that the Data Subject must be aware of the nature, purpose, and extent of the Processing of his or her Personal Data by the Company, including the risks and safeguards involved, the identity of persons and entities involved in processing his or her Personal Data, his or her rights as a Data Subject, and how these can be exercised. Any information and communication relating to the Processing of Personal Data should be easy to access and understand, using clear and plain language.
Processing
Refers to any operation or any set of operations performed upon personal information including, but not limited to:
1. Collection,
2. Recording,
3. Organization,
4. Storage,
5. Updating Or Modification,
6. Retrieval,
7. Consultation,
8. Use,
9. Consolidation,
10. Blocking,
11. Erasure Or
12. Destruction of data.
Personal Information
Whether recorded in a material form or not, are those from which the identity of an individual:
a. Is apparent.
b. Can be reasonably and directly ascertained by the entity holding the information.
c. When put together with other information would directly and certainly identify an individual.
Examples: include the Data Owner's Name, Home address and Phone number
Personal Information
Must be:
1. Collected for specified and legitimate purposes determined and declared before, or as soon as reasonably practicable after collection, and later processed in a way compatible with such declared, specified and legitimate purposes only;
2. Processed fairly and lawfully;
3. Accurate, relevant and, where necessary for purposes for which it is to be used the processing of personal information, kept up to date; inaccurate or incomplete data must be rectified, supplemented, destroyed or their further processing restricted;
Personal Information
Must be:
4. Adequate and not excessive in relation to the purposes for which they are collected and processed;
5. Retained only for as long as necessary for the fulfillment of the purposes for which the data was obtained or for the establishment, exercise or defense of legal claims, or for legitimate business purposes, or as provided by law; and
6. Kept in a form which permits identification of data subjects for no longer than is necessary for the purposes for which the data were collected and processed: Provided, That personal information collected for other purposes may lie processed for historical, statistical or scientific purposes, and in cases laid down in law may be stored for longer periods: Provided, further, That adequate safeguards are guaranteed by said laws authorizing their processing.
Criteria for Lawful Processing of Personal Information
The processing of personal information shall be permitted only if not otherwise prohibited by law, and when at least one of the following conditions exists:
1. The data subject has given his or her consent;
2. The processing of personal information is necessary and is related to the fulfillment of a contract with the data subject or in order to take steps at the request of the data subject prior to entering into a contract;
3. The processing is necessary for compliance with a legal obligation to which the personal information controller is subject;
Criteria for Lawful Processing of Personal Information
The processing of personal information shall be permitted only if not otherwise prohibited by law, and when at least one of the following conditions exists:
4. The processing is necessary to protect vitally important interests of the data subject, including life and health;
5. The processing is necessary in order to respond to national emergency, to comply with the requirements of public order and safety, or to fulfill functions of public authority which necessarily includes the processing of personal data for the fulfillment of its mandate; or
6. The processing is necessary for the purposes of the legitimate interests pursued by the personal information controller or by a third party or parties to whom the data is disclosed, except where such interests are overridden by fundamental rights and freedoms of the data subject which require protection under the Philippine Constitution.
Privileged Information
Refers to any and all forms of data which under the Rules of Court and other pertinent laws constitute privileged communication.
Privileged Information
Examples include:
1. Attorney-client privileged information
2. Doctor-patient privileged information
3. Marital privilege communication
4. Priest-confessor privileged information
Sensitive Personal Information
Refers to personal information:
1. About an individual's race, ethnic origin, marital status, age, color, and religious, philosophical or political affiliations;
Sensitive Personal Information
Refers to personal information:
2. About an individual's health, education, genetic or sexual life of a person, or to any proceeding for any offense committed or alleged to have been committed by such person, the disposal of such proceedings, or the sentence of any court in such proceedings;
Sensitive Personal Information
Refers to personal information:
3. Issued by government agencies peculiar to an individual which includes, but not limited to, social security numbers, previous or current health records, licenses or its denials, suspension or revocation, and tax returns; and
Sensitive Personal Information
Refers to personal information:
4. Specifically established by an executive order or an act of Congress to be kept classified.
Exceptions to the Prohibition of Processing of Sensitive Personal Information and Privileged Information
These are the following cases:
1. The data subject has given his or her consent, specific to the purpose prior to the processing, or in the case of privileged information, all parties to the exchange have given their consent prior to processing;
2. The processing of the same is provided for by existing laws and regulations, provided:
a. Such regulatory enactments guarantee the protection of the sensitive personal information and the privileged information; and
b. The consent of the data subjects are not required by law or regulation permitting the processing of the sensitive personal information or the privileged information;
Exceptions to the Prohibition of Processing of Sensitive Personal Information and Privileged Information
These are the following cases:
3. The processing is necessary to protect the life and health of the data subject or another person, and the data subject is not legally or physically able to express his or her consent prior to the processing;
4. The processing is necessary to achieve the lawful and noncommercial objectives of public organizations and their associations: provided:
a. That such processing is only confined and related to the bona fide members of these organizations or their associations;
b. That the sensitive personal information are not transferred to third parties; and
c. That consent of the data subject was obtained prior to processing;
Exceptions to the Prohibition of Processing of Sensitive Personal Information and Privileged Information
These are the following cases:
5. The processing is necessary for purposes of medical treatment, is carried out by a medical practitioner or a medical treatment institution, and an adequate level of protection of personal information is ensured; or
6. The processing concerns such personal information as is necessary for the protection of lawful rights and interests of natural or legal persons in court proceedings, or the establishment, exercise or defense of legal claims, or when provided to government or public authority.
Subcontract of Personal Information
The act of a personal information controller in subcontracting the processing of personal information.
Personal Information Controller
Shall be responsible for ensuring that proper safeguards are in place to ensure:
1. The confidentiality of the personal information processed,
2. Prevent its use for unauthorized purposes, and generally,
3. Comply with the requirements of the Data Privacy Act and other laws for processing of personal information.
True
(True or False) Personal information controllers may invoke the principle of privileged communication over privileged information that they lawfully control or process. Subject to existing laws and regulations, any evidence gathered on privileged information is inadmissible.
Gender
Sensitive Personal Information
School Graduated From and Date Graduated
Sensitive Personal Information
E-Mail Address
Personal Information
Laptop's IP Address
Personal Information
Bank Account Number
Sensitive Personal Information
Home Address
Personal Information
Income Tax Return
Sensitive Personal Information
Location Tracked Using an App
Personal Information
Court Cases Filed Against the Individual
Sensitive Personal Information
Disclosures Made to An Auditor
Privileged Information
Right of the Data Subject
Rights include:
a. Right to Informed Consent
b. Right to Object
c. Right to Withhold Consent
d. Right to Access
e. Right to Correction
f. Right to Erasure
g. Right to Damages
h. Right to Data Portability
Right to Informed Consent
The right of the data subject to be informed whether personal information pertaining to him or her shall be, are being or have been processed;
Right to Informed Consent
The following information must be provided before the entry of the personal information into the processing system, or at the next practical opportunity:
a. Description of the personal information to be entered into the system;
b. Purposes for which they are being or are to be processed;
c. Scope and method of the personal information processing;
d. The recipients or classes of recipients to whom they are or may be disclosed;
Right to Informed Consent
The following information must be provided before the entry of the personal information into the processing system, or at the next practical opportunity:
e. Methods utilized for automated access, if the same is allowed by the data subject, and the extent to which such access is authorized;
f. The identity and contact details of the personal information controller or its representative;
g. The period for which the information will be stored; and
h. The existence of their rights, i.e., to access, correction, as well as the right to lodge a complaint before the Commission.
Right to Object
The right of the data subject to object to the processing of his or her personal data, including processing for direct marketing, automated processing or profiling.
Right to Withhold Consent
The right of the data subject to be notified and given an opportunity to withhold consent to the processing in case of changes or any amendment to the information supplied or declared to the data subject in the preceding paragraph
Amendment of Information
Shall be allowed if prior notification to the data subject was made.
True
(True or False) The notification shall not apply should the personal information be needed pursuant to a subpoena or when the collection and processing are for obvious purposes, including when it is necessary for the performance of or in relation to a contract or service or when necessary or desirable in the context of an employer-employee relationship, between the collector and the data subject, or when the information is being collected and processed as a result of legal obligation.
Right to Access
The right of the data subject to access to, upon demand, on the following:
a. Contents of his or her personal information that were processed;
b. Sources from which personal information were obtained;
c. Names and addresses of recipients of the personal information;
d. Manner by which such data were processed;
Right to Access
The right of the data subject to access to, upon demand, on the following:
e. Reasons for the disclosure of the personal information to recipients;
f. Information on automated processes where the data will or likely to be made as the sole basis for any decision significantly affecting or will affect the data subject;
g. Date when his or her personal information concerning the data subject were last accessed and modified; and
h. The designation, or name or identity and address of the personal information controller.
Right to Correction
The right of the data subject to dispute the inaccuracy or error in the personal information and have the personal information controller correct it immediately and accordingly, unless the request is vexatious or otherwise unreasonable.
True
(True or False) If the personal information have been corrected, the personal information controller shall ensure the accessibility of both the new and the retracted information and the simultaneous receipt of the new and the retracted information by recipients thereof: Provided, That the third parties who have previously received such processed personal information shall he informed of its inaccuracy and its rectification upon reasonable request of the data subject;
Right to Erasure
The right of the data subject to suspend, withdraw or order the blocking, removal or destruction of his or her personal information from the personal information controller's filing system upon discovery and substantial proof that the personal information are incomplete, outdated, false, unlawfully obtained, used for unauthorized purposes or are no longer necessary for the purposes for which they were collected. In this case, the personal information controller may notify third parties who have previously received such processed personal information;
Right to Damages
The right of the data subject to be indemnified for any damages sustained due to such inaccurate, incomplete, outdated, false, unlawfully obtained or unauthorized use of personal information.
Right to Data Portability
The right of the data subject to obtain from the personal information controller a copy of data, where personal information is processed:
a. by electronic means and
b. in a structured and commonly used format. The Commission may specify the electronic format referred to above, as well as the technical standards, modalities and procedures for their transfer.
Transmissibility of Rights of the Data Subject
The privilege of the lawful heirs and assigns of the data subject for which he or she is an heir or assignee at any time after the death of the data subject or when the data subject is incapacitated or incapable of exercising the rights as enumerated above.
Non-Applicability of Rights
The rights of data subject are not applicable:
1. If the processed personal information are used only for the needs of scientific and statistical research and, on the basis of such, no activities are carried out and no decisions are taken regarding the data subject: Provided, That the personal information shall be held under strict confidentiality and shall be used only for the declared purpose; and
2. To processing of personal information gathered for the purpose of investigations in relation to any criminal, administrative or tax liabilities of a data subject.
Security of Personal Information
The personal information controller must implement reasonable and appropriate organizational, physical and technical measures intended for the protection of personal information against any accidental or unlawful destruction, alteration and disclosure, as well as against any other unlawful processing.
Security of Personal Information
The personal information controller shall implement reasonable and appropriate measures to protect personal information against natural dangers such as accidental loss or destruction, and human dangers such as unlawful access, fraudulent misuse, unlawful destruction, alteration and contamination.
Security of Personal Information
The determination of the appropriate level of security must take into account:
(1) the nature of the personal information to be protected,
(2) the risks represented by the processing,
(3) the size of the organization and complexity of its operations,
(4) current data privacy best practices and
(5) the cost of security implementation.
Security of Personal Information
The personal information controller must further ensure that third parties processing personal information on its behalf shall implement the security measures required by this provision.
Security of Personal Information
The employees, agents or representatives of a personal information controller who are involved in the processing of personal information shall operate and hold personal information under strict confidentiality if the personal information are not intended for public disclosure. This obligation shall continue even after leaving the public service, transfer to another position or upon termination of employment or contractual relations.
True
(True or False) The obligation of the employees, agents, or representatives of a personal information controller in terms of strict confidentiality shall continue even after leaving the public service, transfer to another position or upon termination of employment or contractual relations.
Security of Personal Information
The personal information controller shall promptly notify the Commission and affected data subjects when sensitive personal information or other information that may, under the circumstances, be used to enable identity fraud are reasonably believed to have been acquired by an unauthorized person, and the personal information controller or the Commission believes that such unauthorized acquisition is likely to give rise to a real risk of serious harm to any affected data subject.
National Privacy Commission/Data Privacy Commission
It is the party to whom the personal information controller shall notify and affect data subjects when sensitive information that may, under the circumstances, be used to enable identity fraud are reasonably believed to have been acquired by an unauthorized person, and the personal information controller or the Commission believes that such unauthorized acquisition is likely to give rise to a real risk of serious harm to any affected data subject.
Notification to the Commission
The notification shall at least describe the nature of the breach, the sensitive personal information possibly involved, and the measures taken by the entity to address the breach. Notification may be delayed only to the extent necessary to determine the scope of the breach, to prevent further disclosures, or to restore reasonable integrity to the information and communications system.
a. In evaluating if notification is unwarranted, the Commission may take into account compliance by the personal information controller with this provision and existence of good faith in the acquisition of personal information.
b. The Commission may exempt a personal information controller from notification where, in its reasonable judgment, such notification would not be in the public interest or in the interests of the affected data subjects.
c. The Commission may authorize postponement of notification where it may hinder the progress of a criminal investigation related to a serious breach.
Within 72 Hours
The period to report, made by the personal information controller, to the Commission, if there is likelihood of risk to individuals.
Principle of Accountability
The principle that states that each personal information controller is responsible for personal information under its control or custody, including information that has been transferred to a third party for processing, whether domestically or internationally, subject to cross-border arrangement and operation.