1: Introduction: Bermuda's PIPA First Year on the Global Privacy Stage

The global privacy landscape is becoming increasingly complex, and Bermuda's Personal Information Protection Act 2016 (PIPA) which became fully enacted into law on January 1, 2025, 

For decades, Bermuda has been a key hub for international business, particularly in the insurance, reinsurance, and financial services sectors. PIPA  stamps its regulatory  data protection standards authority  in line with other global regimes like the GDPR, aiming to protect the rights of individuals while ensuring the free flow of data with "adequate" jurisdictions.

However, many global organisations mistakenly believe PIPA only applies to businesses based in Bermuda. This is a critical and costly error. PIPA has a broad extraterritorial scope that captures many international companies.

This article provides a comprehensive guide for global organisations to understand their obligations under PIPA. Navigating this requires more than just a checklist; it demands a robust, integrated compliance strategy. This is where a trusted partner like Formiti Data International and its enterprise-class platform, Privacy360, become essential for achieving and demonstrating global compliance.

2. Does PIPA Apply to My Organisation? The Extraterritorial Test

This is the most crucial question for any global organisation. The answer is simpler than you might think.

PIPA applies to every organisation that "uses" personal information in Bermuda.

It does not matter where your organisation is headquartered. It does not matter where the individual (the data subject) is located. If your company—whether from New York, London, or Singapore—processes, holds, or even transfers personal data within the jurisdiction of Bermuda, you are subject to PIPA.

The term "use" is defined very broadly under PIPA, including:

  • Collecting
  • Obtaining
  • Recording
  • Holding
  • Storing
  • Organising
  • Transferring
  • Disclosing
  • Retrieving
  • Destroying

Common Scenarios for Global Organisations:

  • A US parent company that uses a Bermuda-based subsidiary for HR or payroll services.
  • A European insurance firm that shares data with reinsurers or captive insurers operating in Bermuda.
  • A global financial services provider that uses data processing centres or servers located in Bermuda.
  • A cloud service provider with infrastructure or clients in Bermuda.

If your organisation falls into any of these categories, you must comply with PIPA.

3. Core Obligations for Global Organisations Under PIPA

PIPA is built on internationally recognised privacy principles. If you are compliant with GDPR, you have a strong head start, but PIPA has unique requirements.

Key Requirements:

  • Designate a Privacy Officer: Every organisation must appoint a Privacy Officer responsible for compliance with PIPA. This individual can be an internal employee or an external consultant.
  • Provide a Clear Privacy Notice: You must provide individuals with a clear and accessible notice before or at the time of collection, outlining:
    • The purposes for which their personal information is being used.
    • The identity of the organisation and its Privacy Officer.
    • The types of individuals or organisations to whom their data might be disclosed.
  • Establish a Lawful Basis (Conditions for Use): You cannot use personal information without a valid condition. The primary condition is consent, which must be knowing and clear. However, PIPA also allows for use if it is:
    • Necessary for the performance of a contract with the individual.
    • Required by law.
    • Necessary to respond to an emergency or protect an individual's vital interests.
  • Adhere to Core Data Principles:
    • Fairness and Lawfulness: Use data fairly and legally.
    • Purpose Limitation: Only use data for the specific purposes stated in your privacy notice.
    • Proportionality (Data Minimisation): Collect only what is adequate, relevant, and not excessive.
    • Integrity (Accuracy): Ensure personal information is accurate and kept up-to-date.
    • Retention: Do not keep data for longer than necessary for the stated purpose.
  • Implement "Appropriate" Security Safeguards: You must protect personal information against risks like loss, unauthorised access, destruction, use, or disclosure. The level of security must be proportional to the sensitivity of the data.
  • Notify Breaches of Security: If a data breach occurs that is "likely to adversely affect an individual," you must notify the Privacy Commissioner (PrivCom) and the affected individuals "as soon as reasonably practicable."

4. The Critical Challenge: International Data Transfers

For global companies, this is a high-risk area. Under PIPA, when you transfer personal information from Bermuda to an overseas third party (e.g., your head office in the US, a vendor in India), your organisation remains responsible for that data.

Before transferring any data, you must assess the level of protection provided by the overseas third party. This protection must be "comparable" to the level of protection required by PIPA.

How can you ensure this?

  • Adequacy Decisions: The Privacy Commissioner may designate certain countries as providing comparable protection.
  • Contractual Mechanisms: Using robust data processing agreements and standard contractual clauses.
  • Binding Corporate Rules (BCRs): For intra-group transfers.

This places a significant due diligence burden on your organisation. You cannot simply "onboard" a new vendor. You must conduct a thorough assessment of their legal framework and security practices.

How Privacy360 Solves This:

This is precisely why the Privacy360 Vendor Assessment module is critical for PIPA compliance. It automates the due diligence process, allowing you to send, manage, and review vendor assessments to ensure and document that their protections are comparable before any data is transferred. This creates a defensible record for regulators.

5. Data Subject Rights and Enforcement

PIPA grants individuals strong rights over their data, including:

  • Right to Access: Individuals can ask what personal information you hold about them.
  • Right to Correction: They can request that you correct any errors or omissions.
  • Right to Erasure/Destruction: They can request their data be erased or destroyed if it is no longer relevant for the purpose it was collected for.
  • Right to Block Use: They can object to certain uses of their data.

Enforcement and Stiff Penalties

PIPA is not a "paper tiger." It is enforced by Bermuda's Office of the Privacy Commissioner (PrivCom), which has significant investigative and enforcement powers.

Failure to comply can result in severe penalties:

  • For Organisations: Fines of up to $250,000.
  • For Individuals (e.g., directors, officers): Fines of up to $25,000 and/or imprisonment for two years.

Furthermore, individuals who suffer loss or distress due to a breach of PIPA can bring a private legal action for compensation.

6. Your PIPA Compliance Journey with Formiti & Privacy360

Achieving PIPA compliance from scratch, especially before the January 1, 2025 deadline, is a daunting task. It requires a holistic strategy that combines expert guidance with powerful technology.

Formiti Data International provides the expert-led services to guide your strategy, while the Privacy360 platform provides the operational engine to execute and manage it.

Here is a practical, step-by-step approach using the Privacy360 platform:

  • Step 1: Map Your Data (Know What You Have) You cannot comply with PIPA if you don't know what personal information you "use" in Bermuda. The Privacy360 ROPA (Record of Processing Activities) module is the foundation. It allows you to map your data flows, identify which assets are in-scope for PIPA, and link them to your vendors and legal bases.
  • Step 2: Manage Third-Party Risk (Secure Your Supply Chain) As noted, data transfers are your biggest risk. The Privacy360 Vendor Assessment module streamlines the complex process of assessing and monitoring your overseas third parties to meet PIPA's "comparable protection" requirement.
  • Step 3: Train Your People (Build a Human Firewall) A compliance program is only as strong as your weakest link. PIPA compliance requires a culture of awareness. The Privacy360 Training LMS (Learning Management System) module delivers targeted, role-based training on PIPA's specific requirements, ensuring your staff are trained and you have the records to prove it.
  • Step 4: Prepare for the Worst (Manage Breaches) When a breach happens, you must act fast. The Privacy360 Breach Registry module provides a clear, compliant workflow to manage incidents, assess the likelihood of "adverse effect" on individuals, and guide you through the notification process to PrivCom.

7. Frequently Asked Questions (FAQ) about PIPA

Q: What is Bermuda PIPA?

A: PIPA (The Personal Information Protection Act 2016) is Bermuda's comprehensive data privacy law. It governs how organisations collect, use, and protect personal information. It comes into full effect on January 1, 2025.

Q: Does PIPA apply to my company if we are not based in Bermuda?

A: Yes, if your organisation "uses" personal information in Bermuda. This extraterritorial scope applies regardless of where your company is headquartered or where the data subject resides.

Q: What is the main penalty for not complying with PIPA?

A: Organisations face fines of up to $250,000 per violation. Individuals (like directors or officers) can face fines of up to $25,000 and/or two years in prison.

Q: Do I need to appoint a Privacy Officer for PIPA?

A: Yes. Every organisation subject to PIPA must designate a Privacy Officer, who acts as the point of contact for compliance and with the Privacy Commissioner.

Q: How is PIPA different from GDPR?

A: While they share many principles (like data minimisation, purpose limitation, and security), there are differences in breach notification thresholds, the specific conditions for use, and data transfer requirements. You cannot assume GDPR compliance automatically equals PIPA compliance.

Q: What are the rules for transferring data from Bermuda overseas?

A: You (the Bermuda-based organisation or the global org using data in Bermuda) remain responsible. You must assess the overseas third party and ensure they provide a "comparable level of protection" to PIPA, typically through contracts or other approved mechanisms.

Conclusion: Turn Compliance into a Competitive Advantage

Bermuda's PIPA is a serious regulation with significant consequences. For global organisations, compliance is not optional. The January 1, 2025 deadline is approaching, and regulators expect you to be ready.

This challenge, however, is also an opportunity—to build trust, streamline data practices, and demonstrate your commitment to data protection.

Formiti Data International and the unified Privacy360 platform provide the complete solution. We combine deep legal expertise with an enterprise-class tool that transforms compliance from a complex burden into a manageable, automated, and auditable business process. Don't wait for the deadline; secure your data, protect your business, and partner with a leader in global compliance. Click here for a free consultation