Public Sector

On January 18, 2023, the European Data Protection Board (“EDPB”) published a report on the outcome of its investigation into the use of cloud-based services by the public sector.

The EDPB prepared the report as part of its first coordinated enforcement action under the Coordinated Enforcement Framework (“Framework”), a key part of the EDPB’s 2021-2023 strategy. The Framework facilitates coordinated actions between the EDPB and national data protection authorities to (i) share information and best practices on a topic related to data privacy, and (ii) provide recommendations to better support compliance with data protection laws. Through the Framework, the EDPB and national authorities investigate compliance with a specific data protection topic each year; in 2023, the EDPB will investigate the designation and role of data protection officers (“DPOs”).

This blog summarizes the main takeaways of the 2022 Coordinated Enforcement Action, and highlights its most relevant data privacy concerns.Continue Reading EDPB Releases Outcome of its Investigation into the Use of Cloud-Based Services by the Public Sector

On September 21, 2021, the U.S. Department of the Treasury’s Office of Foreign Assets Control (“OFAC”) issued an “Updated Advisory on Potential Sanctions Risks for Facilitating Ransomware Payments” (the “Updated Advisory”).  The Updated Advisory updates and supersedes an earlier OFAC Advisory released on October 1, 2020, and is directed toward not only organizations victimized by ransomware attacks, but also financial institutions, cyber insurance firms, and forensic and incident-response firms that assist organizations victimized by ransomware attacks.

The Updated Advisory is largely consistent with the previous version released in October 2020, restating the U.S. government’s opposition to ransomware victims making payments to cyber threat actors and making clear OFAC’s commitment to bringing enforcement actions in connection with such payments when they constitute U.S. sanctions violations.  However, the Updated Advisory adds important new guidance on “the proactive steps companies can take to mitigate [sanctions enforcement] risks,” including implementing strong cybersecurity practices before an attack; and promptly reporting a ransomware attack to, and engaging in timely and ongoing cooperation with, law enforcement or other relevant agencies.  Taking these steps would constitute “mitigating factors” in any OFAC enforcement action resulting from sanctions violations in connection with ransomware payments.

In conjunction with the new Advisory, OFAC for the first time designated for sanctions a Russian cryptocurrency exchange, SUEX OTC, that OFAC alleges has been involved in facilitating numerous ransomware payments for malicious cyber actors.  As a result of this designation, U.S. persons (that is, all individual U.S. citizens and permanent residents, U.S.-incorporated entities and their branch offices, and anyone physically within the United States) are now prohibited from engaging in or facilitating virtually all transactions with or involving SUEX OTC.Continue Reading OFAC Issues Updated Guidance on Ransomware Payments

On February 10, 2020, the UK Government’s Committee on Standards in Public Life* (the “Committee”) published its Report on Artificial Intelligence and Public Standards (the “Report”). The Report examines potential opportunities and hurdles in the deployment of AI in the public sector, including how such deployment may implicate the “Seven Principles of Public Life” applicable to holders of public office, also known as the “Nolan Principles” (available here). It also sets out practical recommendations for use of AI in public services, which will be of interest to companies supplying AI technologies to the public sector (including the UK National Health Service (“NHS”)), or offering public services directly to UK citizens on behalf of the UK Government. The Report elaborates on the UK Government’s June 2019 Guide to using AI in the public sector (see our previous blog here).
Continue Reading UK Government’s Advisory Committee Publishes Report on Public Sector Use of AI

On June 10, 2019, the UK Government’s Digital Service and the Office for Artificial Intelligence released guidance on using artificial intelligence in the public sector (the “Guidance”).  The Guidance aims to provide practical guidance for public sector organizations when they implement artificial intelligence (AI) solutions.

The Guidance will be of interest to companies that provide AI solutions to UK public sector organizations, as it will influence what kinds of AI projects public sector organizations will be interested in pursuing, and the processes that they will go through to implement AI systems.  Because the UK’s National Health Service (NHS) is a public sector organization, this Guidance is also likely to be relevant to digital health service providers that are seeking to provide AI technologies to NHS organizations.

The Guidance consists of three sections: (1) understanding AI; (2) assessing, planning and managing AI; (3) using AI ethically and safely, as summarized below. The guidance also has links to summaries of examples where AI systems have been used in the public sector and elsewhere.Continue Reading UK Government’s Guide to Using AI in the Public Sector