Ready Or Not...Another New Rule for Electronic Documents

They're coming fast and furious. The latest federal compliance rule went into effect last Friday, December 1st.

The new rules are related to electronic discovery of documents in civil cases. The rules specify requirements for submitting electronic documents - likely to include e-mail and possibly even instant messaging logs, depending on future case law - as evidence in civil litigation.

According to an article in Computer World, the rules require companies involved in civil litigation to meet within 30 days to decide how to handle electronic data - including what must be shared and in what media format.

Failure to preserve electronic information could prove incredibly costly. In May 2005, Morgan Stanley was fined $1.5 billion when a judge ruled they'd failed to preserve electronic information adequately. Yes, that really was billion, not million!

This new rule just adds to the growing nightmare for IT departments. Now, you're being asked to store everyone's communications for an undetermined amount of time or face huge fines, while knowing full well that these communications are going to be loaded with personal information that you're required to protect by some other regulatory compliance.

In our litigious-happy society, you're going to want to pay attention to this one.

Comments

[Abdul Aziz]

I think thats very necessary. Prevention is the only tool with the help of which we can stop money laundering. I think the regulators should be more strict so that every financial organisation implement KYC AML solution at their end. We are living in a very dangerous world. We have to be very careful.