Which Countries Have Data Localization Laws

Full Location Laws: Covers all categories of personal data and a copy of the data must be stored in the country. Cross-border credit transfers are allowed in certain exceptions. Data location or residency law requires that data about citizens or residents of a country be collected, processed and/or stored in the country, often before being transferred internationally. This data is usually only transferred after compliance with local data protection laws, for example when you inform the user of how the information will be used and obtain their consent. [1] Instead, data protection rules are currently divided between different legal acts and guidance documents. These include the Civil Code (2015), the Electronic Transactions Act (2005), the Information Technology Act (2006), the Consumer Protection Act (2010), the Cybersecurity Act (2015), the Cybersecurity Act (2018). In these circumstances, it is sometimes difficult for companies to see if data protection laws are applicable to the situation. In the past, companies have often managed these regulatory changes as if they were isolated and one-off challenges. However, as data localization requirements become more frequent and geographically fragmented, organizations need a process to consistently address them. With this in mind, we have created a cross-industry handbook that includes clear steps: Support for M&A valuations. Another great advantage of good data regulation management is in the area of mergers and acquisitions. An acquirer needs to know whether a target company`s data capabilities are an asset or a liability. If the goal has a clean record on data security and privacy compliance with a potential candidate, they will deserve and receive a higher grade.

Data localization regulations can have a significant impact on the global economy, especially at a time when the Internet is driving economic growth and is critical to commerce in many global sectors. With additional restrictions on how and where data is stored or transmitted, data localization poses a fundamental threat to the free flow of information across borders and the maintenance of global supply chains. These regulations affect email communications, personal records and social media services, and restrict access to information on which manufacturing and service industries depend. It is important to ensure that the level of best practices and data compliance controls implemented can provide an adequate level of protection for regulated data. Companies now need to look at how they collect, store and use data redrulated in the UAE and how they can comply with local laws. This may include the use of specialized data residency platforms as a service such as InCountry. More concrete examples of data protection legislation can be found in the Cybercrime Act of 2007 (Royal Decree No. M/17) and the new E-Commerce Law of 2019. In addition, industry regulations include data protection obligations for organizations operating in the telecommunications, IT/cloud services, healthcare, and financial services industries. Difficulties in defending against cyber threats. Localization requirements are reversing the trend toward centralized security models.

The most decentralized models divide management`s attention and resource allocation. The resulting vulnerabilities include data exfiltration and issues with infrastructure, encryption, and source code integrity. One of the first steps towards data localization took place in 2005, when the government of Kazakhstan passed a law requiring all “.kz” domains to operate nationally (with later exceptions for Google). [2] However, pressure for data localization increased sharply after Edward Snowden`s revelations about US counterterrorism surveillance programs in 2013. [3] [4] Since then, various governments in Europe and around the world have expressed a desire to be able to control the flow of resident data through technology. Some governments are blamed and others openly admit to using data localisation laws to monitor their own populations or boost local economic activity. [3] [5] [6] Data residency support sends two signals to customers. First, a company that supports data residency respects privacy.

Second, a company that supports data residency can meet regional data protection requirements. The European Union (“EU”) General Data Protection Regulation, together with (a) the United Kingdom`s Data Protection Act 2018 and related post-Brexit implementing laws and (b) the implementing laws of EU member states (collectively, the “GDPR”), allow the transfer of personal data outside the European Economic Area (“EEA”) that has not been deemed “adequate” for personal data, only in certain circumstances. Below you will find an overview of the main mechanisms by which personal data can be lawfully transferred. Can personal data be shared with third parties inside and/or outside the UAE? According to the Criminal Code (Article 379), this may be the case if the person concerned has consented in writing to such disclosure. The most important expectation is the consent of the person concerned. Information is considered personal data if it identifies a specific person. Location rules only apply to companies if they intentionally perform certain actions: collecting, recording, systematizing, collecting, storing, clarifying (updating and modifying) and extracting personal data. What is data residency? This is the location of regulated data such as personal information in a specific region or country. This could include only data storage, but it could also include processing. When such data is processed in accordance with the laws of that specific region. In this context, InCountry is the first Data Residency-as-a-Service provider to enable you to grow globally as it securely manages your regulated data in 90+ countries. When the European Union adopted the revolutionary General Data Protection Regulation (GDPR) in 2018, it was difficult for CISOs in many companies to align with the requirements of the law.

More than 500 lawsuits have been filed against non-compliant companies, resulting in fines of 260 million euros ($300 million) so far. At the same time, the cost of GDPR compliance for Fortune 500 companies is expected to be around $8 billion annually. *Data localisation laws are inherently difficult to categorize accurately and are constantly changing. This map is ASG`s best assessment of the regulations in force at the time of publication. Creating a privacy policy and ensuring that it is easily accessible to data subjects (for example, on the website); Brazil restricts the transfer of personal data outside the country, unless prior consent has been obtained or another exception applies. Regulators aren`t the only ones taking data protection regulations seriously. Consumers also have increasingly high expectations about the use and transmission of their data. Digital trust is a serious concern for them.

But while the benefits of risk reduction are real, it`s a defensive game. More convincing are the advantages of correct location. Companies facing these issues have a significant competitive advantage in several key areas: Operating models. To ensure compliance with location requirements, more investment (including hiring local experts) is needed in different regions. It also requires clearly defined responsibilities and good coordination between many different entities, including privacy, data, technology, business units, and regulatory affairs. This can be difficult to achieve, as they may have conflicting priorities. When introducing data protection laws in Vietnam, it makes sense to consider the following factors: Many countries such as Germany, France, and Russia have laws that require citizens` data to be stored on physical servers within the country`s physical borders. There are also countries where regulations only apply to certain industries that promote the same local flow of data, such as government agencies and military contractors. Around the world, we are seeing a plethora of new data localisation regulations. While they have a variety of justifications, the challenges of the IT and data landscape are often very similar. Companies that are agile enough to handle this regulatory change could gain significant competitive advantages. More than 100 countries now require their citizens` data to be stored on servers physically located within their borders.

These laws present significant new technical challenges for Chief Information Security Officers (CISOs). As our world grows bigger every day, regional differences are emerging: what might be considered acceptable use of personal information in Egypt could be controversial in China. A service like InCountry, which supports data residency, makes it possible to adapt processing to regional expectations through internal processing decisions. These manipulations are also considered data transfers (because the data is moved to another country), so in an ideal world, you need to make sure that only EU citizens and EU machines interact with the data. Storage in the EEA and processing in the EEA as well as access from outside the EEA are considered transfers. This has a significant impact on your processing architecture. For example, if you have a U.S. and international customer base, you need to store and process data separately and in multiple countries.

One of the fundamental problems for companies that comply with data localization laws is the difficulty of determining which categories of data should be stored locally and which can be moved overseas. As cross-border trade increasingly shifts towards e-commerce and relies on the use of internet technologies such as cloud computing and big data, data localization measures pose a major threat to the economy and companies` bottom line.