What it asks for. The confidentiality and/or integrity of information must be protected while it is being transmitted.
In practice. This means TLS for web, API and email traffic using current protocol versions and strong cipher suites, encrypted VPNs or private links for site-to-site traffic, and encrypted management protocols such as SSH instead of Telnet. Auditors look for configuration standards, TLS scan results, certificate inventories and evidence that unencrypted protocols are disabled. ISO/IEC 27001 cryptography controls and GDPR security requirements point the same way. Certificates should be inventoried and renewed automatically to avoid outages.
Common gaps. Internal traffic is often left unencrypted on the assumption that the network is trusted. Legacy protocols and outdated TLS versions survive on older systems and appliances. Email between organisations may still travel without enforced encryption.