As IT pros evaluate cloud computing services, they must be aware of federal regulations that restrict where certain data gets stored, or potentially face serious penalties.
Companies evaluating cloud computing must consider the regulatory compliance implications of this new approach to computing. One area of concern is whether any of your company’s data is controlled under U.S. export control rules, including whether use of cloud services could lead to the disclosure of controlled technical data without the required export authorization.
It is important to consider export control implications of IT decisions early in the process because U.S. export control rules have a strict liability standard, meaning that a violation occurs whether the unauthorized disclosure was accidental, negligent, or intentional. Individuals, as well as companies, may be held responsible for export violations. The penalties for non-compliance are severe, ranging from $250,000 to $1,000,000 per violation. Individuals could face up to 20 years imprisonment.
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Source: Information Week
By: Marsha McIntyre
Friday, November 19, 2010
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