APPI
Japan's regulation for protecting personal information privacy
APRA CPS 234
Australian prudential standard for information security resilience
Quick Verdict
APPI governs personal data protection for Japan businesses with consent and rights focus, while APRA CPS 234 mandates cyber resilience for Australian financial firms via board oversight and testing. Organizations adopt APPI for market access, CPS 234 for regulatory compliance.
APPI
Act on the Protection of Personal Information
Key Features
- Extraterritorial reach to foreign businesses targeting Japan
- Pseudonymously processed data enables consent-free purpose changes
- Explicit prior consent required for sensitive data transfers
- PPC enforcement with up to ¥100M administrative fines
- Pseudonymous information treated distinctly from anonymized data
APRA CPS 234
APRA Prudential Standard CPS 234 Information Security
Key Features
- Board ultimate responsibility for information security
- 72-hour APRA notification for material incidents
- Third-party managed assets fully in scope
- Systematic risk-based control testing required
- Asset classification by criticality and sensitivity
Detailed Analysis
A comprehensive look at the specific requirements, scope, and impact of each standard.
APPI Details
What It Is
Act on the Protection of Personal Information (APPI) is Japan's primary national regulation enacted in 2003 with major amendments in 2022. It governs handling of personal data by businesses, balancing privacy rights with economic data use. Scope covers all organizations processing Japanese residents' data, with extraterritorial effect for foreign entities targeting Japan. Employs risk-based, principle-driven approach emphasizing consent, security, and data subject rights.
Key Components
- Core principles: purpose limitation, data minimization, transparency, security safeguards.
- Handles personal, sensitive, and pseudonymously processed information.
- **Data subject rightsaccess, correction, deletion, objection within strict timelines.
- Enforcement by Personal Information Protection Commission (PPC); compliance via guidelines, no mandatory certification but P Mark voluntary.
Why Organizations Use It
Mandatory for data handlers to avoid ¥100M fines, breach notifications, reputational damage. Drives trust (78% consumers prefer compliant brands), enables cross-border transfers, efficiency gains (15-25% cost reduction), market access in Japan's economy.
Implementation Overview
Phased 5-stage framework (12-24 months): gap analysis, policy design, technical controls, testing, monitoring. Applies to all sizes/industries (tech, finance, e-commerce); SMEs lighter touch. Focuses data mapping, DPO appointment, vendor DPAs; PPC audits enforce.
APRA CPS 234 Details
What It Is
APRA Prudential Standard CPS 234 (Information Security) is a binding prudential regulation issued by the Australian Prudential Regulation Authority. Effective from 1 July 2019, it mandates APRA-regulated entities to maintain information security capabilities commensurate with threats and vulnerabilities. Its risk-based approach focuses on governance, controls, testing, and rapid notification to ensure resilience against cyber incidents impacting confidentiality, integrity, or availability of information assets, including those managed by third parties.
Key Components
- 11 core requirements spanning board accountability, role definitions, policy frameworks, asset classification, lifecycle controls, incident response, systematic testing, internal audit assurance, and APRA notifications (72 hours for material incidents, 10 business days for control weaknesses).
- Built on CIA triad principles with commensurability to risks.
- No certification; compliance via evidence-driven assurance and supervisory review.
Why Organizations Use It
- Mandatory for APRA-regulated financial institutions (banks, insurers, super funds) to avoid enforcement, penalties, and heightened scrutiny.
- Enhances cyber resilience, third-party oversight, stakeholder trust, and operational continuity.
Implementation Overview
- Phased: gap analysis, asset inventory, control design, testing programs, TPRM integration.
- Applies to all sizes in Australian financial sector; requires board oversight, independent audits.
Key Differences
| Aspect | APPI | APRA CPS 234 |
|---|---|---|
| Scope | Personal data protection, consent, rights | Information security, cyber resilience |
| Industry | All industries, Japan-focused | Financial services, Australia-regulated |
| Nature | Mandatory privacy law | Mandatory prudential standard |
| Testing | Self-assessments, audits | Systematic independent testing, annual reviews |
| Penalties | ¥100M fines, imprisonment | Supervisory actions, remediation orders |
Scope
Industry
Nature
Testing
Penalties
Frequently Asked Questions
Common questions about APPI and APRA CPS 234
APPI FAQ
APRA CPS 234 FAQ
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