Importance of POPI Act Compliance in South Africa for iXBRL Preparation
Security and protection of personal information are the most critical operational concerns for a business owner. For this purpose, the South African Parliament passes the Protection of Personal Information (POPI) Act or POPIA. The POPI Act outlines what businesses must do to safeguard the personal data of employees, customers, and suppliers. From 1st July 2021, all companies operating in South Africa were mandated to be POPIA compliant.
The importance of POPI Act compliance in South Africa is also relevant in iXBRL Preparation, as it requires a massive amount of personal data regarding the financial history of their clients and business. Continue reading the blog below to know more about the importance of POPIA in iXBRL reporting and how companies can achieve the same.
What is POPI ACT?
The Protection of Personal Information (POPI) Act intends to protect personal information processed by public and private entities in South Africa. As per the act, personal information is limited to a natural person (a human being) and includes a juristic person (such as a company). Furthermore, the act enforces an individual’s right to privacy and offers guidelines on notifying regulators and data subjects in case of a breach.
POPI Act Compliance and iXBRL Preparation
The rise in consumption of digital technology has led to an increase in cybercrimes and identity theft worldwide. The Presidency’s announcement of the POPI Act has ushered South Africa to be globally competitive in data privacy and information protection in alignment with global standards.
Since companies use a massive amount of personal information while preparing their annual iXBRL reports, it is essential to follow the POPI Act while preparing and filing reports with CIPC. Failure to comply with the act can have severe consequences for you and your company.
As per the POPI Act, the accountant of a firm in South Africa must interact with customers and clients by adhering to the requisite privacy laws. Furthermore, collecting, storing, and processing employee information must align with the act’s provisions. Or, if you outsource your CIPC iXBRL tagging requirements to a third-party service provider, you should ensure that the company’s information handling practices comply with the POPI Act.
The Bottom Line
The POPI Act allows public and private entities operating in South Africa to protect their personal information from thefts and crimes. The law strictly mandates collecting, storing, modifying, and destroying personal information. To become POPIA compliant, your organisation must have a 360-degree view of how data enters and leaves your possession.
If you want to outsource your iXBRL format requirements to a third-party vendor, DataTracks can be your ideal choice. The company has 18+ years of experience compiling error-free reports and continually reviews its data handling practices to comply with the POPI Act. The company is committed to providing you with the following rights under the POPI Act:-
- Right to be informed
- Right of access
- Right to rectification
- Right to erasure
- Right to restriction of processing
- Right to object
- Right to be notified
- Right to lodge a complaint
Right to institute civil proceedings
So what are you waiting for? Contact DataTracks expert TODAY @ email at enquiry@datatracks.co.za.
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