Review of changes in legislation on protecting personal data:September 2014

Change of the effective date of the Federal Law, which prohibits storage of personal data of Russian citizens outside the Russian Federation

We would like remind you that on July 21, 2014 Federal Law No. 242-FZ “On amending certain legislative acts of the Russian Federation in relation to the procedure for processing of personal data in information and telecommunication networks” (hereinafter the “Federal Law”) was adopted by the State Duma of the Russian Federation.

According to the Federal Law, any operator of personal data is required to ensure that recording, systematization, accumulation, storage, clarification and retrieval of personal data of Russian citizens is done exclusively using databases located in the Russian Federation. Access to the web sites that violate the Federal Law will be blocked in the Russian Federation.

The Federal Law was thought to enter into force on September 01, 2016.

However, on September 24, 2014 the State Duma of the Russian Federation adopted in the second reading Draft Federal Law No. 596277-6 (hereinafter the “Draft Law”), which amends the Federal Law changing its effective date from September 01, 2016 to January 01, 2015. Therefore, the requirement  to use databases located in Russia for the purpose of personal data collection can become effective from January 01, 2015.

Taking into account that the Draft Law is currently being fast-tracked on national security-related grounds, most likely it will be finally adopted by the State Duma soon and approved by the Federation Council after, which may require businesses to consider how this Draft Law may affect them.