PIPL
China's comprehensive law for personal information protection
ISO 37001
International standard for anti-bribery management systems
Quick Verdict
PIPL mandates privacy protections for Chinese data with hefty fines, while ISO 37001 offers voluntary anti-bribery certification. Companies adopt PIPL for legal compliance in China; ISO 37001 for global risk mitigation and market trust.
PIPL
Personal Information Protection Law (PIPL)
Key Features
- Extraterritorial scope for foreign processors targeting China
- Consent-first basis without legitimate interests alternative
- Volume-threshold cross-border transfer mechanisms and reviews
- Explicit separate consent for sensitive personal information
- Penalties up to 5% annual revenue or RMB 50M
ISO 37001
ISO 37001 Anti-Bribery Management Systems
Key Features
- Risk-based bribery risk assessment and controls
- Third-party due diligence and monitoring
- Leadership commitment and compliance function
- Financial and non-financial anti-bribery controls
- Internal audits and continual PDCA improvement
Detailed Analysis
A comprehensive look at the specific requirements, scope, and impact of each standard.
PIPL Details
What It Is
PIPL (Personal Information Protection Law), enacted November 1, 2021, is China's comprehensive national regulation governing personal information processing. It protects natural persons' rights, applies domestically and extraterritorially to foreign entities targeting China, using a risk-based approach with strict consent and minimization principles.
Key Components
- 74 articles across 8 chapters covering processing rules, cross-border transfers, individual rights.
- Core principles: lawfulness, necessity, minimization, transparency, accountability.
- Sensitive PI (biometrics, health) requires explicit consent; 7 legal bases, no legitimate interests.
- Compliance via PIPIAs, DPO appointment, CAC security reviews for transfers.
Why Organizations Use It
- Mandatory for China-exposed firms; fines up to 5% revenue.
- Enables market access, builds trust, reduces breach risks.
- Strategic for MNCs in e-commerce, fintech; enhances resilience.
Implementation Overview
Phased: gap analysis, data mapping, policies, controls, audits (6-12 months). Applies universally; high complexity for globals needing localization, representatives.
ISO 37001 Details
What It Is
ISO 37001 is the international certifiable standard for Anti-Bribery Management Systems (ABMS). It specifies requirements to prevent, detect, and respond to bribery risks, covering direct/indirect bribery by/for organizations and associates. Adopting a risk-based, proportionate approach via PDCA cycle (Clauses 4-10), it applies universally across sectors/sizes.
Key Components
- Leadership commitment, anti-bribery policy, compliance function
- Bribery risk assessment, due diligence, financial/non-financial controls
- Training, awareness, reporting/investigations, audits
- Built on ISO Harmonized Structure; ~8 core control areas; 3-year certification cycles
Why Organizations Use It
- Mitigates prosecution risks (e.g., FCPA, UK Bribery Act)
- Builds trust, reduces costs (up to 15%), enhances ESG/reputation
- Demonstrates 'reasonable steps' in investigations
- Enables market access, tender wins
Implementation Overview
- Phased: gap analysis, risk assessment, controls/training, audits/certification
- Scalable for SMEs/multinationals; integrates with ISO 9001/27001
- Certification optional; 2025 transition by Feb 2027 (180 words)
Key Differences
| Aspect | PIPL | ISO 37001 |
|---|---|---|
| Scope | Personal information processing, privacy rights | Anti-bribery management, corruption prevention |
| Industry | All handling Chinese personal data, extraterritorial | All sectors worldwide, any organization size |
| Nature | Mandatory Chinese law, CAC enforcement | Voluntary certifiable management standard |
| Testing | DPIAs, security reviews, CAC audits | Internal audits, certification body assessments |
| Penalties | Fines to 5% revenue, business suspension | Loss of certification, no legal penalties |
Scope
Industry
Nature
Testing
Penalties
Frequently Asked Questions
Common questions about PIPL and ISO 37001
PIPL FAQ
ISO 37001 FAQ
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