Singapore, US to support financial data cross-border transfer

It will be allowed as long as financial regulators have access to data.

Singapore and the United States have agreed to support cross-border data transfer by financial services firms without data localisation as long as regulators have access to the data.

In a joint statement, the Monetary Authority of Singapore (MAS) and the US Department of Treasury (USDT) recognised that data mobility boosts economic growth, financial services, benefit risk management and compliance programs, thus enabling easier detection of cross-border money laundering, terrorist financing, and cyberattacks.

Data localisation requirements can strengthen cybersecurity, prevent risk management and compliance, and inhibit financial regulatory and supervisory access to information.

The two countries seek to ensure that financial service suppliers can transfer data across borders for business, oppose measures that restrict where data can be stored and processed, and guarantee that financial services suppliers can remediate lack of data access before being required to use or locate computing facilities locally.

They also aim to share information on developments related to these issues and encourage other countries to adopt similar policies.

The statement is not legally binding under any local or international law and was issued without prejudice to obligations under the World Trade Organization (WTO) and to the exceptions in the General Agreement on Trade in Services (GATS).