Financial Crime World

Evolving Landscape of Data Protection and Privacy Regulations in the United States

The landscape of data protection and privacy regulations in the United States is constantly changing. As companies navigate this complex environment, it’s essential to understand the key aspects of compliance, consent, data transfer requirements, and operationalizing privacy regulations.

Understanding Compliance

To ensure compliance with relevant regulations, companies must grasp the differences between being a data controller or processor. A data controller determines the purposes for which personal data is processed, while a data processor processes personal data on behalf of a data controller. Companies must understand their role and responsibilities to comply with regulations.

Key Considerations

  • Understand your company’s role as either a data controller or processor.
  • Familiarize yourself with relevant regulations and guidelines.
  • Develop a compliance strategy to ensure adherence to regulations.

Consent is a critical aspect of data protection and privacy regulations. Companies must obtain freely given consent from individuals, which should not be considered an obligation. Additional layers of consent may be required based on relationships between companies and individuals.

Key Considerations

  • Obtain freely given consent from individuals.
  • Ensure that consent is not considered an obligation.
  • Develop a process for obtaining additional layers of consent as needed.

Data Transfer Requirements

Companies must navigate complex rules regarding data transfer across jurisdictions. This involves ensuring compliance with regulations such as the General Data Protection Regulation (GDPR) and the Personal Information Protection and Electronic Documents Act (PIPEDA).

Key Considerations

  • Understand the requirements for data transfer across jurisdictions.
  • Ensure compliance with relevant regulations, such as GDPR and PIPEDA.
  • Develop a process for managing data transfers.

Operationalizing Privacy Regulations

Companies can proactively build a compliance strategy by taking steps such as:

Key Considerations

  • Make privacy a strategic goal within the organization.
  • Develop policies and procedures to support compliance.
  • Establish board-level oversight to ensure accountability.
  • Build understanding and buy-in across the organization.
  • Implement flexible and scalable programs to manage data protection and privacy.

Biden Administration Implications

The new administration may prioritize finalizing the new Privacy Shield, take an aggressive regulatory approach, and increase enforcement actions related to data privacy. Companies must stay informed about changes in regulations and adjust their compliance strategies accordingly.

Key Considerations

  • Stay up-to-date on changes in regulations.
  • Adjust compliance strategies as needed.
  • Prioritize building strong relationships with customers.
  • Focus on adapting to evolving regulations.