DAC8 Privacy Impact Assessment: A Template for CASPs

A Data Protection Impact Assessment (DPIA) helps CASPs identify and mitigate privacy risks associated with DAC8 data processing. This article provides a practical template for conducting a DAC8-specific DPIA.

When a DPIA Is Required

A DPIA is mandatory under Article 35 of GDPR when processing is likely to result in a high risk to the rights and freedoms of individuals. For DAC8, a DPIA is recommended for all CASPs and is likely mandatory for CASPs with large user bases processing significant volumes of financial and identification data.

DPIA Template

Section 1: Processing Description. Describe the nature of DAC8 data processing, including what data is collected, from whom, how it is processed, where it is stored, to whom it is transmitted, and how long it is retained.

Section 2: Necessity and Proportionality Assessment. Explain why the processing is necessary (legal obligation under DAC8), confirm that only required data is collected (data minimization), verify that data is not used for purposes beyond DAC8 compliance, and confirm that retention periods align with legal requirements.

Section 3: Risk Assessment. Identify risks including unauthorized access to sensitive financial and identification data, data breaches during transmission to tax authorities, inaccurate data leading to incorrect tax assessments for users, excessive data collection beyond what DAC8 requires, and data retention beyond the legally required period.

Section 4: Mitigation Measures. Document the measures implemented to address identified risks, such as encryption of data at rest and in transit, access controls limiting DAC8 data access to authorized personnel, secure transmission protocols for report submission, data quality checks and validation procedures, automated retention management and deletion schedules, and staff training on data protection obligations.

Section 5: DPO Consultation. Document the Data Protection Officer's review and opinion on the DPIA findings and recommended measures.

Conclusion

A thorough DPIA demonstrates a CASP's commitment to privacy compliance and helps identify risks before they materialize. The template above provides a structured approach that CASPs can adapt to their specific circumstances.