The European Commission says it will start work on allowing police and financial data to continue to flow from the EU to the UK for the next four years.
It comes after the commission said the UK’s data protection laws were in line with Europe’s, despite the changes brought about by Brexit.
After the UK left the bloc last year it was no longer bound by EU data protection laws.
But the government has already incorporated the EU regulations into its own laws and the EU will now check again in four years to see if the crossover remains adequate.
Commission vice president for values and transparency Vera Jourova said: “Ensuring free and safe flow of personal data is crucial for businesses and citizens on both sides of the Channel.
“At the same time, we should ensure that our decision will stand the test of time.
“This is why we included clear and strict mechanisms in terms of both monitoring and review, suspension or withdrawal of such decisions, to address any problematic development of the UK system after the adequacy would be granted.”
Oliver Dowden, Secretary of State for Digital, Culture, Media and Sport, said: “I welcome the publication of these draft decisions which rightly reflect the UK’s commitment to high data protection standards and pave the way for their formal approval.
“Although the EU’s progress in this area has been slower than we would have wished, I am glad we have now reached this significant milestone.”
The EU still needs to consult its European Data Protection Board to get the approval from a committee composed of EU government representatives.
This is expected to be completed by the end of June.