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Contract Intelligence Blog
Feb 11, 2022
The Schrems II Deadline Is Approaching. Do You Have a Plan for Your Contracts?
What is Schrems II and why does it matter?
Many companies are currently utilising Standard Contractual Clauses (SCCs) in both existing contractual agreements, and in the creation of new contracts. SCCs are included to ensure international data transfers of personal data from Europe and the UK to recipients outside the European Union and the UK are compliant. Following a decision from the Court of Justice of the European Union in 2020 in respect to Schrems II, businesses are now required to undertake due diligence in the form of Country Assessments when relying on SCCs as an appropriate safeguard before any international data transfer takes place to third countries not deemed ‘adequate’.
What is at risk?
Companies need to act soon to prevent any potential fines for non-compliance, which can be as much as €20 million, or 4% of their annual global turnover. All
remediation must be carried out before 27 December 2022. SCCs have been required to be in place in any new contracts relying on SCCs since September 2021.
What can I do?
Through a combination of the market-leading Icertis Contract Intelligence (ICI) platform and advisory services from our partner, PWC, we can work with our clients to ensure companies remediate contracts so that they are compliant with the new requirements by the deadline in December 2022. Advisory teams will ensure Schrems II compliance by identifying any existing contracts that are impacted, with recommendations for remediation actions before the deadline. The specialist advisory team can also ensure that updated SCCs have been introduced into new contracts, where applicable, in accordance with the required guidelines.
Remediation activities can be carried out on identified contracts through Bulk Actions in Icertis. The new SCCs are also introduced dynamically to any new contracts being created where required, plus used in amending existing contract language.
Whether your needs are to identify the potential impact, remediate affected contracts, ensure compliance in the future, or all the above, Icertis and PWC can support you. Through a combination of advisory services and the advanced capabilities of the Icertis Contract Intelligence platform, we can ensure your company’s compliance ahead of the deadline and therefore avoid any penalties.
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Icertis has again been recognized as a Leader in the Forrester Wave: Contract Lifecycle Management For All Contracts Q1 2021 report. This is the second consecutive Wave report to recognize Icertis as a Leader. Read the report and learn more about the impact of CLM and why Icertis has been named a Leader.