Client Alert: Myth Busters: Dispelling Common Misconceptions Of The Department Of Justice's Data Security Program

A month has passed since the Department of Justice (DOJ) National Security Division's (NSD) issued its Final Rule prohibiting certain transactions involving US government data and Americans' bulk sensitive personal data. Designed to prevent foreign adversaries from accessing and exploiting data that could be used to enhance artificial intelligence capabilities, augment intelligence collection and foreign espionage, and enable malicious cyberattacks and malign foreign influence capabilities, the Final Rule sweeps broadly across the private sector.

But misconceptions about the Final Rule—including five common ones below—could lead many to mistakenly believe their activities are outside its scope. Fortunately, on April 11, DOJ issued a delayed enforcement policy allowing 90 days for organizations to come into compliance. Before the grace period expires on July 8, organizations should proactively assess how their data flows interact with the Final Rule's provisions