The U.S. Department of Justice (DoJ) has implemented a final rule in line with Executive Order 14117, which prohibits the mass transfer of citizens’ personal data to countries deemed adversarial, including China (along with Hong Kong and Macau), Cuba, Iran, North Korea, Russia, and Venezuela. Assistant Attorney General Matthew G. Olsen has emphasized that this measure is crucial for mitigating the national security threats posed by these countries accessing sensitive personal data of Americans.

The enforcement of this rule aims to ensure that personal data of Americans is not sold or made available to hostile foreign entities through various means, including purchases or other commercial arrangements. This action follows President Biden’s executive order from February 2024, which sought to counter the national risks associated with unauthorized access to sensitive personal and government data that could facilitate espionage, influence operations, or cyber attacks.

The order points out that adversarial nations could use this bulk data to enhance their advanced technologies, such as artificial intelligence, or to purchase information from commercial data brokers. The DoJ highlighted that such data could also be employed to surveil or intimidate activists, journalists, political opponents, and marginalized communities, leading to potential violations of civil liberties.

This new rule is set to take effect in 90 days and outlines specific classes of transactions that are prohibited, restricted, or exempt. It establishes thresholds for bulk data transfers that would trigger these prohibitions and includes enforcement mechanisms like civil and criminal penalties. The types of data covered by the rule include personal identifiers, precise geolocation data, biometric data, genome-related data, personal health information, and financial data.

Significantly, the rule does not impose data localization requirements nor does it restrict U.S. citizens from engaging in legitimate research activities in the mentioned adversarial countries. It also does not broadly prevent the exchange of financial data or other commercial transactions with these nations.

In summary, this regulatory action reflects a significant step toward protecting American citizens’ privacy and security by safeguarding their personal data from foreign adversaries.

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