With the Data Security Program of the US Justice Department officially becoming fully enforced on October 6, 2025, it would be a highly important milestone in the lives of businesses that process sensitive American information. The US individuals, as well as organizations involved in covered data transactions, now have to meet extensive due diligence, audit, record-keeping, and reporting practices, which are aimed at ensuring the absence of access by foreign enemies to bulk sensitive personal data and information related to the government.
Comprehensive compliance framework targets foreign adversary access
The Data Security Program provides an export control-like form of restrictions that bar any access to the US government-related data and bulk sensitive personal data by its enemies foreign to it, such as China, Russia, and Iran. The program creates a difference between restricted transactions and prohibited transactions; the former are those transactions that are highly restricted and need to be provided with strong compliance tools, and within the context of cybersecurity controls.
The data concerning the US government is associated with accurate geolocation information on sensitive sites on the public list of the DOJ, including military bases, and sensitive personal data connected with current and former government employees. The program applies to the data that is already anonymized, de-identified, or encrypted, and certain substantial volume standards decide to cover the scope of particular kinds of sensitive personal information.
There are rigid restrictions on transactions covered persons
The companies are required to list covered persons, like non-US companies located in countries of concern, companies that are 50 percent or own entities that are located in countries of concern, and individuals who live in or work in countries of concern or covered entities/entities. The DOJ has a complete list, known as the Covered Persons List, of individuals, be they foreign or US-based, found to have satisfied specific criteria to be restricted.
Compulsory compliance programs cause operational problems
Beginning on October 6, US individuals participating in limited transactions are required to establish written data compliance programs that require risk-based procedures to verify the data flows, participants of transactions, and end-use sensitive data. The programs mandate officers in the company to be certified annually, and all the processes involved in handling the data are to be well documented within the organization.
Independent auditing is made mandatory for firms involved in data transactions covered annually, where qualified auditors have to review compliance programs, security requirements, and limited transactions. The audit reports should be done within 60 days and contain extensive analysis of the vulnerabilities, security weaknesses, and recommendations for better compliance with the federal requirements.
The company should keep a full account of restricted transactions of not less than a 10-year auditable report in any format, such as data types, data volumes, transfer format, transaction details, and the method of transfer that could be availed to the DOJ when requested. All these recordkeeping needs place businesses under the need to develop advanced data management systems that would have the capability of thorough tracking and storage.
Extreme punishments highlight the areas of focus
The Data Security Program includes the violation, the consequences of which are maximum civil penalties up to 368,134 or twice the amount of the transaction, whichever is greater. The maximum imprisonment and 1 million fines as criminal penalties will cause willful breaches to prove the serious attitude of the government to the implementation of these pro-national security actions.
The Data Security Program conducted by the Justice Department is as close as it gets to signifying a change in the way companies should handle the international exchange of data, especially with entities that are related to other foreign enemies. The October 6 deadline is an indicator that the government is resolute to ensure that sensitive American data is not compromised due to threats to national security.