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DOJ Seeks to Restrict Data Transfers to Countries of Concern Orrick Herrington Sutcliffe LLP

The proposed rule would require U.S. companies to obtain explicit consent from affected individuals before transferring their data to foreign companies.

The Proposed Rule: A New Era in Data Protection

The Department of Justice has proposed a significant restriction on cross-border transfers of sensitive personal data, aiming to address national security risks. This move is part of a broader effort to strengthen data protection and ensure the security of sensitive U.S.

The Need for a Cybersecurity Rule

The proposed rule aims to implement Executive Order 14117, which was issued in 2001 to address the threat of foreign influence in the United States. The order requires the Secretary of Commerce to take all necessary steps to prevent the unauthorized disclosure of sensitive information to foreign governments. The concern is that the increasing availability of data from the internet and social media platforms has created new opportunities for foreign governments to engage in malicious cyber-enabled or malign foreign influence activities.

The Proposed Rule

The proposed rule would implement Executive Order 14117 by requiring the Secretary of Commerce to take all necessary steps to prevent the unauthorized disclosure of sensitive information to foreign governments. The rule would require the Secretary of Commerce to: + Take all necessary steps to prevent the unauthorized disclosure of sensitive information to foreign governments. + Take all necessary steps to prevent the unauthorized disclosure of sensitive information to foreign governments.

The Impact on the Internet and Social Media Platforms

The proposed rule would have a significant impact on the internet and social media platforms.

The Proposed Rule: Protecting Sensitive Data from AI Development

The U.S. government has proposed a new rule aimed at protecting sensitive personal data and U.S. government data from being used to develop artificial intelligence (AI) systems. The proposed rule, which is part of the Federal Trade Commission’s (FTC) efforts to regulate the use of personal data, would restrict transactions involving bulk sensitive personal data and U.S. government data.

What is Bulk Sensitive Personal Data?

The Proposed Rule: A Shift in Regulatory Approach

The proposed rule, which aims to regulate cryptocurrency transactions, marks a significant shift in the regulatory approach. Instead of focusing on individual transactions, the rule would establish broad prohibitions and restrictions, setting the stage for a more comprehensive regulatory framework.

A Move Away from Case-by-Case Assessments

The proposed rule would abandon the current case-by-case assessment approach, where each transaction is evaluated separately. This new approach would impose blanket restrictions on certain types of transactions, rather than considering the specific circumstances of each case. Key aspects of the proposed rule: + Establishing broad prohibitions and restrictions + No new restrictions to take effect immediately + Unclear timing for a final rule or effective date

Implications for the Industry

The proposed rule would have far-reaching implications for the cryptocurrency industry.

The proposed rule also includes provisions for covered persons to report and disclose information about restricted transactions. The new rule aims to enhance the effectiveness of the existing sanctions regime by providing more detailed guidance on how to implement the sanctions.

Article Title: Enhancing Sanctions Compliance: A New Rule for Covered Persons

Overview of the Proposed Rule

The Office of Foreign Assets Control (OFAC) has proposed a new rule aimed at enhancing the effectiveness of the existing sanctions regime. The rule, which is expected to take effect in the near future, will significantly impact companies and entities operating in countries of concern. In this article, we will delve into the key aspects of the proposed rule, including the definition of “covered persons,” the requirements for risk-based compliance programs, and the provisions for reporting and disclosing restricted transactions.

Definition of Covered Persons

The proposed rule defines “covered persons” to include entities that are organized in a country of concern. This means that companies and organizations operating in countries subject to sanctions will be required to comply with the new regulations. The definition of a country of concern is not explicitly stated in the proposed rule, but it is expected to be based on the list of countries subject to sanctions maintained by OFAC. Countries subject to sanctions may include countries such as North Korea, Iran, and Syria, among others. The definition of a country of concern may also include entities that are under the control of a country of concern, such as a subsidiary or affiliate.*

Risk-Based Compliance Programs

The proposed rule requires companies engaging in restricted transactions to develop and implement risk-based compliance programs. These programs will be designed to identify and mitigate potential risks associated with sanctions compliance. The requirements for risk-based compliance programs are as follows:

  • Companies must conduct a risk assessment to identify potential risks associated with sanctions compliance.

    The rule also authorizes the DOJ to designate persons who are acting on behalf of a covered person or country of concern.

    The rule also establishes a process for the implementation of the covered person designation.

    Understanding the Covered Person Designation Rule

    The proposed rule, issued by the U.S. Department of Justice (DOJ), aims to clarify the process for identifying and designating covered persons under the Bank Secrecy Act (BSA). The rule sets out a list of identifiers that U.S.

    The Importance of Precise Geolocation Data

    In today’s digital age, precise geolocation data has become an essential component of various industries, including law enforcement, healthcare, and finance. This data is used to track individuals, monitor activities, and make informed decisions.

    Protecting sensitive health information is crucial for maintaining patient trust and ensuring compliance with regulations.

    This includes any information related to their health status, including diagnoses, treatments, and medications. *Examples of personal health data include:**

  • A patient’s medical history, including any past illnesses or injuries. A person’s genetic information, including genetic testing results. A patient’s medical records, including test results and treatment plans. A person’s mental health records, including therapy notes and medication lists. A patient’s fitness and wellness data, including fitness tracking information and nutrition plans. A person’s health-related social determinants, including socioeconomic status and access to healthcare. The proposed rule would also expand the definition of ‘covered entity’ to include: Examples of covered entities include:**
  • Healthcare providers, such as doctors, nurses, and hospitals. Healthcare payers, such as insurance companies and government programs. Healthcare clearinghouses, such as billing companies and medical record providers. Healthcare business associates, such as consultants and contractors. Healthcare-related entities, such as pharmaceutical companies and medical device manufacturers. The proposed rule would also establish a new set of standards for the protection of personal health data.

    Bulk Data Thresholds

    The proposed rule would establish specific thresholds for bulk data, which would be used to determine whether data is considered “bulk” for the purposes of the rule. These thresholds would be based on the average annual expenditure of a consumer, which would be calculated using data from the Consumer Financial Protection Bureau (CFPB) and other sources.

    Credit Card and Bank Account Data

  • The proposed rule would require credit card and bank account data to be considered “bulk” if the average annual expenditure exceeds $10, This threshold would be based on the average annual expenditure of a consumer, as calculated by the CFPB. The rule would also require that the data be aggregated by consumer, rather than by individual account.

    The proposal would also require the implementation of a new system for tracking and reporting of data breaches, and the creation of a new position, the Chief Information Security Officer (CISO), to oversee the implementation of the new system and to ensure that the data breach response plan is effective.

    The Proposed Legislation: A Comprehensive Approach to Data Protection

    The proposed legislation aims to address the growing concern of sensitive personal data being misused by transacting parties. The bill, which has been introduced in the U.S. Congress, seeks to provide a comprehensive framework for the protection of sensitive personal data.

    Key Provisions of the Proposed Legislation

  • Reporting Requirements: The proposal would require U.S. persons to report violations of the new data protection regulations. This would include reporting any instances of sensitive personal data being misused or mishandled. Data Breach Tracking and Reporting: The proposal would also require the implementation of a new system for tracking and reporting of data breaches. This system would be designed to ensure that any data breaches are quickly identified and addressed. Chief Information Security Officer (CISO): The proposal would also require the creation of a new position, the Chief Information Security Officer (CISO), to oversee the implementation of the new system and to ensure that the data breach response plan is effective. ### The Importance of Data Protection**

    • The Importance of Data Protection

    Sensitive personal data is a valuable asset that must be protected from misuse.

    NIH’s Proposed Rule Restricts Sensitive Data Transactions in Human Genomics Research.

    The Proposed Rule: Restrictions on Covered Data Transactions

    The proposed rule, which aims to restrict certain covered data transactions, has sparked significant debate among stakeholders in the research community. The rule, which is part of the National Institutes of Health’s (NIH) Human Genome Organization (HGO) policy, seeks to ensure that sensitive information is protected while still allowing for the advancement of scientific research.

    Background

    The NIH’s HGO policy was established in 2001 to promote international collaboration in the field of human genomics. The policy allows researchers to share data and biospecimens with international partners, but it also includes provisions to protect sensitive information. The proposed rule is an update to this policy, and it seeks to clarify the types of transactions that are subject to restrictions.

    Key Provisions

    The proposed rule would restrict the following types of transactions:

  • Transactions that provide a country of concern or covered person access to bulk human genomic data or human biospecimens. Transactions that involve the sharing of sensitive information, such as genetic data or personal identifiable information. Transactions that are not subject to prior review or approval by the NIH. ### Implications*

    • Implications

    The proposed rule has significant implications for researchers and institutions involved in human genomics research.

  • Examples of exempted data transactions include:
              • • A person sending an email to a friend in another country. A company exporting software to a foreign partner.

                Regulatory Approval Data: The Key to Unlocking Global Markets

                Regulatory approval data is a critical component in the process of obtaining or maintaining regulatory approval to market a drug, biological product, device, or a combination product in a country of concern. This data is essential for demonstrating the safety and efficacy of a product, and it plays a vital role in the regulatory approval process.

                What is Regulatory Approval Data? Regulatory approval data refers to the collection of information and data that is submitted to regulatory authorities in support of a product’s regulatory application.

                The Proposed Rule: A Comprehensive Overview

                The proposed rule, which aims to strengthen the enforcement of the Bank Secrecy Act (BSA), sets a new standard for civil and criminal penalties for violations of the law. The rule, which is currently under consideration by the Financial Crimes Enforcement Network (FinCEN), seeks to deter and detect financial crimes, such as money laundering and terrorist financing.

                Key Provisions of the Proposed Rule

              • The proposed rule sets the maximum civil penalty for violations at $368,136 or twice the amount of the violating transaction, whichever is larger. Criminal violations could trigger fines of up to $1 million and imprisonment. The rule also establishes a new penalty structure for repeat offenders, with increased fines and imprisonment for subsequent violations. ### The Impact of the Proposed Rule*

                • The Impact of the Proposed Rule

                The proposed rule is expected to have a significant impact on the financial industry, as it seeks to strengthen the enforcement of the BSA and deter financial crimes. The increased penalties for violations are expected to discourage individuals and organizations from engaging in illicit activities, such as money laundering and terrorist financing.

                The Benefits of the Proposed Rule

                The proposed rule offers several benefits, including:

              • Increased deterrence: The increased penalties for violations are expected to deter individuals and organizations from engaging in illicit activities. Improved detection: The rule’s new penalty structure for repeat offenders is expected to improve the detection of financial crimes.

                companies would be required to store data of U.S. citizens within the United States, effectively limiting the ability of U.S. companies to transfer data to foreign servers.

                The Proposed Rule: A Significant Restriction on Cross-Border Data Transfers

                The proposed rule, which has been met with significant criticism from industry stakeholders, aims to restrict the transfer of personal data of U.S. citizens to foreign servers. This move would have far-reaching implications for U.S. companies that rely on international data transfers to operate their businesses effectively.

                The Impact on U.S. Companies

              • The proposed rule would require U.S. companies to store data of U.S.

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