Data Localization. Data Localization
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1 Data Localization Society of Corporate Compliance & Ethics Compliance & Ethics Institute 2016 Presenter: Web Hull Data Localization - Web.Hull@icloud.com 1 Data Localization It s All about Protecting the Crown Jewels (However Defined & By Whomever Defined) Data Localization - Web.Hull@icloud.com 2 1
2 What are these devices? Data Localization - Web.Hull@icloud.com 3 What Are These Places? Data Localization - Web.Hull@icloud.com 4 2
3 Who Are These Men? Data Localization - Web.Hull@icloud.com 5 What Did They Do? There Go the Crown Jewels 1. They Memorized (Stole) the Plans of Machinery that was Prohibited for Export from England 2. One Immigrated to the Colonies Rhode Island 3. The Other Returned Home to the US - Massachusetts 4. They Established the Textile Industry in the US Data Localization - Web.Hull@icloud.com 6 3
4 What is Data Localization? 1) A requirement (however created) tostore, route, process, or otherwise use data only within a politically defined area 2) A requirement (however created) to retaindata within a politically defined area 3) A requirement (however created) to notstore, route, process, or otherwise send or allow access to data In a Politically Defined Area By a Defined Entity or Person Data Localization - Web.Hull@icloud.com 7 Some Examples of Data Localization Regional EU Country Russia State / Province Ohio B.C. Bill 73 Sector US Financial US Health Care Other ITAR Export Controls OFAC Data Localization - Web.Hull@icloud.com 8 4
5 Why Do Political Entities Create Data Localization Restrictions? Economic Advantage Protectionism / Isolationism Jobs Anti-Globalization Political Control National Security Cultural Others? Data Localization - Web.Hull@icloud.com 9 Why Do Companies Create Data Localization Restrictions? High Level of Protection Ease of Management Marketing Customer Requests / Preferences Reach of Law Required by Law / Regulation Others Data Localization - Web.Hull@icloud.com 10 5
6 Is There Only One Kind of Data Localization? Laws, Regulations, Guidance, Treaties Customer Requirements Customer Preferences Company Preferences Others? Data Localization - Web.Hull@icloud.com 11 Countries With Some Data Localization Requirements Argentina Australia Belarus Brazil Canada China Colombia EU France Germany India Indonesia Kazakhstan Malaysia New Zealand Nigeria Peru Russia South Korea Taiwan Turkey Uruguay United States Venezuela Vietnam Data Localization - Web.Hull@icloud.com 12 6
7 Strong Localization Laws & Regulations Russia -242-FZ law -September 1, 2015 Requires personal data operators to Collect, store, and process any data about Russian users in databases inside Russia Inform Regulators of the location of their data centers Gives Regulators Enhanced access to information and Power to impose harsh penalties for non-compliance Data Localization - Web.Hull@icloud.com 13 Strong Localization Laws & Regulations Indonesia Electronic System Operator for the public service Is obligated to put the data centerand disaster recovery center in Indonesian territory For the purpose of o law enforcement, o protection, and o enforcement of national sovereignty to the data of its citizens. Data Localization - Web.Hull@icloud.com 14 7
8 Strong Localization Laws & Regulations U.S. International Traffic in Arms Regulations ( ITAR ) ITAR Arms are Identified on the United States Munitions List ( USML ). Dual Use Export Restrictions Sending or taking any ITAR items or information out of the US. Transferring ITAR items or information within the US to anyone not a U.S. citizen or lawful permanent resident Data Localization - Web.Hull@icloud.com 15 Moderate Localization Laws & Regulations Canada - Local Restrictions Bill 73 -British Columbia 1996 Freedom of Information and Protection of Privacy A public body must ensure that personal information in its custody or under its control is stored only in Canada and accessed only in Canada. Nova Scotia -24 Bill No. 19 the Nova Scotia Personal Information International Disclosure Protection Act, 2006 Public bodiesensure that personal information in its custody or under its control is stored only in Canada and accessed only in Canada. Data Localization - Web.Hull@icloud.com 16 8
9 What Are the First Things To Do? Identify Who in Your Organization Should Identify the Restrictions? Owns the Data? Data Localization - Web.Hull@icloud.com 17 It s a Complex Compliance Challenge Identify Your Own Configuration e.g. Outlook Exchange Servers, Data Centers, Cloud Providers Including SAAS Vendors Vendors Subcontractors And So On Data Localization - Web.Hull@icloud.com 18 9
10 WhatAre the First Things To Do? Map & Document The Data Flows! If You Don t Know What Kind of Data You Have, Which Borders It Crosses, & Who Receives It, You Can t Determine the Restrictions Have a Set of Tools 1. Data Mapping 2. GRC 3. Data Localization - Web.Hull@icloud.com 19 WhatAre the First Things To Do? Start with Customer s Data What Kind of Data? Collected Where? Follow the Data to Its Final Destination Update Data Map Regularly Data Localization - Web.Hull@icloud.com 20 10
11 There Is No Such Thing As an Army of One Figuring Out How to be in Compliance is a Team Sport Company Members Both In-Country & at the HQ Outside Experts Global, In-Country, at the HQ Both Subject Matter Experts & Local Country Experts Data Localization - Web.Hull@icloud.com 21 There Is No Such Thing As an Army of One Who should be on the team? Both in Country & at HQ SubjectMatter Experts 1 for Each Requirement Compliance Privacy Legal Contracts / Other Marketing IT HR Background Investigations Business Units Data Owners Someone to Dothe Mapping Project Support Others? Data Localization - Web.Hull@icloud.com 22 11
12 Some Common Work-Arounds Consents Enabling Regulations -e.g. Privacy Shield, Model Contracts Waivers Data Center Locations Get Creative But Be Compliant Others? Sometimes There Aren t Any at All! Data Localization - Web.Hull@icloud.com 23 There Might Be A Light at the End of the Tunnel Trans Pacific Partnership Article No Party shall require a covered person to use or locate computing facilities in that Party s territory as a condition for conducting business in that territory. Exceptions Government services are excluded BC Bill 73 & Nova Scotia - 24 Bill No. 19 Financial Services are excluded Or is the Light Just a Train from New Jersey? Data Localization - Web.Hull@icloud.com 24 12
13 Some Final Thoughts 1) I Don t Know of Any One Place to Find Everything You Need to Know 2) It s Always Changing Work Hard to Keep Up-to-date 3) Sometimes You Have to Go Along to Get Along 4) Not Entering or Exiting a Restrictive Jurisdiction is Always an Alternative 5) It Will Probably Get Worse Before It Gets Better Brexit? Data Localization - Web.Hull@icloud.com 25 Thank You! & Questions? Data Localization - Web.Hull@icloud.com 26 13
14 Contact Information Web Hull Privacy, Data Protection, & Compliance Advisor Global Privacy & Compliance Group Telephone & Text: LinkedIn: Data Localization - Web.Hull@icloud.com 27 14
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