The US Department of Justice (DOJ) has introduced a new data security program aimed at curbing the transfer of sensitive American data to foreign adversaries, including China and Russia. The initiative requires companies to implement measures that prevent large-scale data transfers to these nations.
Loyaan Egal, a partner who spoke with Law360, emphasized the importance of compliance. Although the DOJ’s National Security Division will not immediately enforce these rules strictly, companies are encouraged to make “good faith” efforts in aligning with the new requirements.
Egal highlighted the significance of assessing current systems: “It’s an area for everyone to take seriously and make sure they’re at least doing an assessment of their systems.” He also advised companies to seek permission for data transfers proactively rather than seeking forgiveness after potential violations: “This has definitely been set up in a way where companies need to ask for permission [for data transfers] on the front end and don’t want to be asking for forgiveness later.”
