US Justice Department proposes stricter rules on data sharing with foreign countries

The US Justice Department’s new rules could affect companies like TikTok, which may face penalties if they transfer sensitive data to foreign parent companies.

Department of Justice

The United States Justice Department introduced new rules on Monday to safeguard federal and personal data from foreign adversaries such as China, Russia, and Iran. The regulations aim to limit certain business transactions that could transfer sensitive American data to these countries.

The proposal implements an executive order from President Biden and seeks to prevent the misuse of American financial, health, and genomic data by foreign governments for purposes like espionage and cyber attacks. Countries such as Venezuela, Cuba, and North Korea are also included in the list of nations targeted by the rule.

Among the data types restricted from transfer are human genomic data on more than 100 individuals, and financial or health data on over 10,000 people. Geolocation data on more than 1,000 US devices will also be restricted under the new rule.

The Justice Department plans to enforce compliance through both civil and criminal penalties. Apps like TikTok could potentially violate the new regulations if they transfer sensitive data to their Chinese parent companies.