Latham & Watkins has modified its data access policies for its Hong Kong office in response to heightened data security concerns following China’s implementation of stricter data protection regulations. The firm now requires its Hong Kong-based lawyers to obtain permission before accessing the global database, which includes China-related files. This change is intended to comply with recent regulatory developments and reduce the potential exposure of sensitive information during law enforcement raids, as the databases accessible in Hong Kong would be limited to local and China-based data.
This decision comes after China introduced new data restrictions in 2022, which have prompted businesses to reassess how they handle confidential information. These regulations are part of broader measures by the Chinese government to assert greater control over data, particularly in light of increasing geopolitical tensions with Western countries.
In a report from the Financial Times, a source familiar with the matter explained that the revised access protocols would ensure that during a government raid, only Hong Kong and China-specific databases would be accessible, thus limiting exposure to external data systems.
The change in policy follows actions taken by other firms operating in China. For example, Dentons, a major global law firm, announced last year that it was restructuring its operations in China to comply with the updated data regulations. Dentons did not specify whether it had taken similar measures to Latham & Watkins in terms of restricting access to global databases.
Caroline Cheung, Dentons’ clients and markets manager in Hong Kong, emphasized the firm’s commitment to ensuring the confidentiality of client data while maintaining its collaborative relationships with colleagues across the firm’s global offices. Other law firms, including Mayer Brown and Morgan Lewis, declined to comment on whether they had implemented similar changes to their data access policies.
Latham & Watkins’ adjustment reflects broader concerns within the legal sector about maintaining compliance with local regulations while safeguarding sensitive client information. Law firms are increasingly cautious about managing their data infrastructure, given the risks associated with mishandling or leaking information.
Industry experts such as Robert C. Bata, principal at WarwickPlace Legal, noted that Latham’s move aligns with what many businesses in Hong Kong had already been doing informally in response to tightening regulations. However, some experts believe that China may eventually amend its rules to facilitate smoother access to global data for firms operating in Hong Kong, a move that could help strengthen the city’s position as a regional legal and financial hub.
As the situation evolves, international law firms in Hong Kong continue to monitor changes to local and mainland Chinese laws that could impact their operations. With security protocols becoming more stringent in both Hong Kong and mainland China, businesses are adapting to ensure compliance while protecting client data.
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