Amidst fears Russia’s personal data storage law ready to spring into effect

Amidst fears Russia's personal data storage law ready to spring into effect There is a lot of buzz throughout Russia centering the personal data law about to spring into effect on September 1st. It may turn out to be a headache and confusion with several companies. In the previous year, 526-FZ, a federal law was established to counter data leakage and state-wise security issues. Some entrepreneurs have criticized this move along with the justifications given in favor. As per the new personal data law, all the personal details and information registered by citizens on websites during online purchase or forwarding electronic messages is regarded as personal data. It needs to be stored within Russia.

Roskomnadzor, the communication watchdog of Russia will blacklist the companies violating law terms. Official website access may be blocked and it will also entail fines. This new personal data law is all set to impact a large majority of firms operating throughout Russia. As per Roskomnadzor’s estimation, 2.6 million companies are processing the personal data all over the country.

Some of the foreign companies were discouraged to enter the Russian market. For instance, the Sweden based music service firm Spotify was planning to release itself during the first six months of 2015. However, the plans were cancelled blaming it upon challenging financial condition and data storage laws. However, the companies already in marketplace find no substitute move but complying with law. It may lead to facing stiff economic and systematic challenges.

Many company heads and leaders are still unable to interpret this new personal data law. According to a Stack Group senior employee, there is belief that complying with this may be sufficient to transfer the personal data collection to Russia. The data collected finally can be later also stored abroad. According to ACCR supremo, this broadly drafted law is subjected to several possible interpretations. There would be more clarity with the passage of time and with the onset of legal precedents.

Majority of overseas companies functioning within Russia have given their nod to operate in accordance with law. One of the companies had their spokesperson throwing light on this issue. The spokesperson talked about their company’s effort in complying with regulation and applicable laws. According to a survey findings published by a Russian organization, merely 54% companies are well prepared for this law springing into effect. The study reveals that almost 27% companies aren’t ready to transfer the personal data at this country. Similarly, about 19% are fully unprepared to follow the suit. While one third find financial obstacles as much as 24% are only worried regarding the technical ability for transferring data.

Some stiff challenges may surface when a company aims to alter their infrastructural set up. Similarly, some issues may also arise over the recovery of disaster and their preparedness for transferring data. During the month of June, some European entrepreneurs requested President Putin to postpone the validation of law to 1st September. As per Roskomnadzor, by 1st January 2016 the personal data law may be inspected over 300 firms to ensure they’re complying with new law.

Image source: Russavia

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