Lawyers
National Security Practice Group Chair John Carlin spoke with Lexology Pro about what the U.S. Department of Justice’s new data security rule means for corporations. The rule, which took effect on April 8, restricts certain foreign entities’ access to Americans’ sensitive personal data and government-related data. In “Seller beware: navigating third-party corporate ownership under new US data restrictions,” published on May 5, John says that the practical guidance for companies under this new regime calls for continued diligence. “You need to figure out, ‘Hey if I’m doing business with a party, how much risk do I have in this transaction?’” he says.
John adds that when working with new business partners, companies should take care to do basic diligence to determine either internally or through a sanctions compliance vendor on the business counterparty’s ownership structure and what laws that business is subject to.
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