The CLOUD Act: what does it mean for Global Businesses

What is CLOUD Act?

A United States federal law enforced in 2018 by passing an executive agreement on access to data by foreign governments is known as Clarifying Lawful Overseas Use of Data (CLOUD Act) Act.
The CLOUD Act allows the federal law organizations to ask for data stored via subpoena or warrant to tech-based companies in US irrespective of where the data is stored.

This Act works as an amendment to the previous Stored Communications Act (SCA). Federal Bureau Investigation (FBI) faced difficulties in acquiring the data with the SCA, and this act came into action to simplify the process of acquiring the data.

What are the provisions of CLOUD Act?

The CLOUD Act gives the following rights:
  • It can authorize the police to eavesdrop on the communications from the US Companies without obtaining a warrant.
  • It allows the US President to sign an MLAT (Mutual Legal Assistance Treaty) with foreign countries to demand the data stored by their CSPs (Cloud Service providers)

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