DOJ Clarifies Enforcement and Compliance Expectations Under Foreign Adversary Data Rule

DOJ Clarifies Enforcement and Compliance Expectations Under Foreign Adversary Data Rule

According to an article by the Davis Wright Tremaine firm, the Department of Justice (DOJ) has released comprehensive guidance on its recently effective Foreign Adversary Data Rule. Aimed at preventing foreign adversaries from exploiting US government and personal data through commercial means, the Final Rule went into effect on April 8, 2025. 

Accompanying documents published on April 11, including a Compliance Guide, FAQs, and an Implementation and Enforcement Policy, offer critical insight into compliance expectations and enforcement priorities. These materials help organizations understand how to structure their Data Security Programs (DSPs) and navigate the rule’s complexities as they assess their exposure to covered transactions.

During the first 90 days of enforcement, the DOJ’s National Security Division (NSD) will focus on facilitating compliance rather than aggressively pursuing civil enforcement, provided companies make good-faith efforts to comply. After July 8, 2025, DOJ expects full adherence to the rule’s restrictions, including due diligence, contractual safeguards, audit trails, and risk-based compliance procedures. The guidance also reinforces the importance of senior management engagement and recommends appointing a compliance lead with authority and resources.

For risk management professionals, the DOJ expects organizations to know their data types, volumes, and how it flows across vendors and jurisdictions. Ignorance of data scope or exposure will not be a defense. The Foreign Adversary Data Rule guidance underscores the need for robust, documented compliance programs, especially for companies involved in cross-border transactions.

As the rule proceeds under the Trump Administration, with no signs of reversal, firms must act swiftly to align their data governance practices and contracts with the DOJ’s expectations or risk costly enforcement outcomes.