Financial Crime World

Puerto Rico Legislature Set to Overhaul Data Privacy Laws in Financial Services

The Puerto Rico Senate has approved House Bill No. 1548, “The Consumer Data and Personal Information Protection Act”, aiming to strengthen data privacy regulations in financial services.

Key Provisions of the Proposed Law

  • Transparency and Accountability: Requiring data controllers to maintain a visible privacy policy that is reviewed and updated every six months, ensuring transparency and accountability.
  • Clear Language: Mandating that privacy policies be written in a clear and understandable language, accessible to consumers in their “maternal tongue” (at least Spanish and English), and prominently displayed on websites or mobile applications.
  • Consumer Rights: Requiring data controllers to disclose how consumers can exercise their rights to:
    • Delete personal data
    • Correct inaccuracies
    • Request copies of their information for transfer to other services
  • Data Retention Limitation: Placing a 24-month limit on retaining consumer data, with exceptions provided in the bill.
  • Prohibition of Data Mining: Prohibiting data mining practices.
  • Active Consent: Requiring active consumer consent before:
    • Personalizing ads
    • Collecting sensitive information
  • Reasonable Technological Safeguards: Mandating reasonable technological safeguards to protect stored consumer data.

Challenges and Compliance

The proposed law is expected to present significant legal and technological challenges for companies operating in Puerto Rico, particularly if it takes effect immediately. The Puerto Rico Department of Consumer Affairs will be responsible for receiving and adjudicating consumer complaints.

Companies doing business in Puerto Rico should begin preparing for compliance costs and technology adjustments now to ensure a smooth transition.

Support from Ferraiuoli

At Ferraiuoli, we are committed to supporting companies subject to the proposed law, ensuring prompt and seamless compliance if it becomes law. We can help you navigate the challenges of this new legislation and ensure your organization is well-equipped to handle the changes.