The Monetary Authority of Singapore and the U.S. Treasury expressed support in a joint statement for data transfer by financial firms without the need for data localization.
As long as financial watchdogs have access to data for regulatory and supervisory purposes there may be little need for local data storage. In fact, the statement noted that localization of data – or physical storage within borders – can increase cybersecurity and other operational risks; hinder risk management and compliance; and inhibit financial regulatory and supervisory access to information.
«Data mobility in financial services supports economic growth and the development of innovative financial services and benefits risk management and compliance programs, including by making it easier to detect cross-border money laundering and terrorist financing patterns, defend against cyberattacks, and manage and assess risk on a global basis,» the joint statement added.
Three Goals
Although not legally binding, the two countries intend to promote and implement various policies with three goals in mind: ensure the ability of cross-border electronic data transferrals; oppose restrictions against where data can be stored and processed assuming regulators have access; and the chance to remedy lack of data access before being required to use local facilities.
The U.S. and Singapore also intend to share information on related developments to third countries and, where appropriate, encourage them to adopt policies consistent with this joint statement.
«The statement of intent between the Monetary Authority of Singapore (MAS) and the U.S. Treasury reflects a strong commitment to safeguard cross-border data connectivity for financial institutions so that the financial system is safer and more efficient,» said Jacqueline Loh, deputy managing director at MAS.
