Financial institutions in the country have made significant progress in preparing for the upcoming data localization deadline, according to recent reports. A survey conducted by a leading financial regulatory body found that 57% of financial institutions are fully prepared to meet the requirements set by the government. The deadline, originally scheduled for the end of the year, has prompted increased efforts across the sector to ensure compliance with the new regulations.
The data localization law requires financial institutions to store customer data within the country’s borders, aiming to enhance data security and regulatory oversight. The survey, which included responses from over 200 financial institutions, revealed that the majority of respondents had implemented necessary infrastructure upgrades and updated their data management protocols. Some institutions, however, still face challenges in meeting the deadline, particularly smaller banks and fintech companies with limited resources.
This regulatory shift follows a broader trend of increasing data sovereignty measures globally. Governments worldwide have been enacting laws to control the flow of data within their jurisdictions, citing national security and economic benefits. In this context, the data localization law represents a key step in strengthening the country’s digital governance framework. The regulatory body has also announced plans to provide additional support to institutions that are still in the process of compliance.
