You are currently viewing Data  Deals  and Diplomacy  Part III : DOJ Issues National Security Final Rule with New Data Compliance Obligations for Transactions Involving Countries of Concern  Sheppard Mullin Richter  Hampton LLP
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Data Deals and Diplomacy Part III : DOJ Issues National Security Final Rule with New Data Compliance Obligations for Transactions Involving Countries of Concern Sheppard Mullin Richter Hampton LLP

The rule applies to all U.S. persons, including U.S. companies, non-profit organizations, and government agencies.

Understanding the Prohibited and Restricted Data Transactions Rule

The FIRS rule is a critical component of the U.S. government’s efforts to protect sensitive personal data. The rule aims to prevent unauthorized disclosure of sensitive personal data to foreign nationals or entities.

Key Provisions of the Rule

  • The rule prohibits the transfer of bulk sensitive personal data to foreign nationals or entities, unless the data is de-identified or anonymized. The rule restricts the transfer of sensitive personal data to foreign nationals or entities, unless the data is de-identified or anonymized, or the foreign national or entity is a U.S.

    Impact on Companies with Operations in Countries of Concern

    The final rule, which was published on December 22, 2022, marks a significant milestone in the implementation of the US government’s efforts to combat human trafficking. The rule, which was proposed in 2020, aimed to strengthen the US government’s efforts to combat human trafficking by requiring companies to report on their efforts to prevent human trafficking in their supply chains.

    Key Developments

  • The final rule includes several minor clarifications and conforming edits, which were made to address comments received from stakeholders.

    The New Rule: A Comprehensive Overview

    The new rule, which was recently finalized, sets a new standard for the collection, use, and sharing of government-related location data. This rule is a significant development in the field of data protection and privacy, and it has far-reaching implications for organizations that handle sensitive information.

    Key Components of the Rule

    The rule has several key components that are worth noting. These include:

  • Effective Date: The rule sets an effective date of April 8, 2025, for every component of the rule except for specified compliance obligations. These obligations do not require implementation until October 6, Government-Related Location Data List: The rule substantially expands the Government-Related Location Data List from the 8 locations in the proposed rule to 736 locations. This list includes various types of government-related locations, such as government buildings, public transportation hubs, and other sensitive areas. Compliance Obligations: The rule requires organizations to implement certain compliance obligations, such as obtaining explicit consent from individuals before collecting and sharing their location data. ### Implications of the Rule**
  • Implications of the Rule

    The new rule has significant implications for organizations that handle sensitive information. Some of the key implications include:

  • Increased Data Protection: The rule requires organizations to implement robust data protection measures to ensure the secure collection, use, and sharing of government-related location data. New Compliance Requirements: The rule introduces new compliance requirements for organizations, including the need to obtain explicit consent from individuals before collecting and sharing their location data.

    New Definition Expands Scope of Human Genomic Data, Impacts Clinical and Predictive Research.

    The Impact of the Final Rule on Human Genomic Data

    The final rule, which was published in the National Institutes of Health (NIH) Federal Register on January 3, 2023, has significant implications for the field of human genomic data. The rule creates a new sub-definition of “human genomic data” that includes human epigenomic data, expanding the scope of what is considered “human genomic data.”

    Understanding the New Definition

    The new definition of “human genomic data” is as follows:

  • Human genomic data includes:
      • Human genomic sequences
      • Human genomic variations
      • Human genomic annotations
      • Human genomic data derived from human genomic sequences
      • Human epigenomic data
      • The inclusion of human epigenomic data in the definition of “human genomic data” is a significant development, as epigenetic modifications play a crucial role in regulating gene expression and have been implicated in various diseases.

        Implications for Clinical and Predictive Research

        The new definition of “human genomic data” will have a profound impact on clinical and predictive research, particularly those implementing AI within their research. Some of the key implications include:

  • Enhanced predictive capabilities: The inclusion of human epigenomic data will enable researchers to better predict disease risk and develop more effective treatments. Improved personalized medicine: The use of human genomic data will allow for more personalized medicine, where treatments are tailored to an individual’s specific genetic and epigenetic profile.

    The Department of Justice (DOJ) has recently introduced a new regulation aimed at increasing transparency and accountability in the national security review process. The regulation, which went into effect on January 1, 2023, is designed to provide greater clarity and consistency in the review process, and to reduce the risk of national security risks associated with foreign investment.

    The New Regulation: A Shift in Approach

    The new regulation, officially known as the “Foreign Investment Review Modernization Act” (FIRMA), is a significant departure from the previous approach to national security reviews.

    The regulation aims to protect the rights of individuals by ensuring that their personal information is not exploited for commercial gain.

    The Need for Data Protection Regulations

    In today’s digital age, the collection and use of personal data have become increasingly prevalent. With the rise of social media, online shopping, and other digital services, individuals are generating vast amounts of personal data. However, this data is often not adequately protected, leaving individuals vulnerable to exploitation. Key concerns include: + Data breaches: Unauthorized access to sensitive information + Data misuse: Using personal data for purposes other than those consented to + Data exploitation: Selling or sharing personal data for commercial gain

    The Impact of Data Exploitation

    The exploitation of personal data can have severe consequences for individuals and society as a whole. Some of the potential impacts include:

  • Financial loss: Identity theft, credit card fraud, and other financial crimes
  • Emotional distress: Invasion of privacy, loss of trust, and feelings of vulnerability
  • Social and economic inequality: Discrimination based on personal data, limiting access to opportunities and resources
  • The Proposed Regulation

    The proposed regulation aims to address the concerns surrounding data exploitation by establishing clear guidelines for the sale and accessibility of personal data.

    CISA Sets New Cybersecurity Standards for Companies Participating in Restricted Transactions.

    The CISA Security Requirements: A Roadmap to Compliance

    The Cybersecurity and Infrastructure Security Agency (CISA) has issued a set of security requirements for companies to follow in order to participate in restricted transactions. These requirements are designed to protect the nation’s critical infrastructure from cyber threats. In this article, we will explore the CISA security requirements, the implications for companies, and provide a roadmap to compliance.

    Understanding the CISA Security Requirements

    The CISA security requirements are a set of standards that companies must meet in order to participate in restricted transactions. The requirements are based on the NIST Cybersecurity Framework, which provides a comprehensive approach to managing and reducing cybersecurity risk. The requirements cover a range of areas, including: + Asset management + Identity and access management + Network security + Incident response + Supply chain risk management

    Implications for Companies

    Companies that participate in restricted transactions must implement the CISA security requirements by April 8. Failure to do so may result in being excluded from participating in these transactions.

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