M88 Malaysia Counter-Terrorism Law and Its Implication to Telecom and Internet Companies

After three deliberations, M88 Malaysia Counter-Terrorism Law of M88 Malaysia PRC (“CTL”) was formally promulgated by M88 Malaysia National People’s Congress Standing Committee (“NPC Standing Committee”) on December 27, 2015, and took effect from January 1, 2016. M88 Malaysia CTL is M88 Malaysia first counter-terrorism law in China, which includes wide-ranging stipulations and is intended to cover to all aspects of counter-terrorism activities. Among oM88 Malaysiar things, M88 Malaysia CTL provides obligations for telecom and Internet enterprises to cooperate with government authorities in investigating terrorism activities, which may have a significant impact on M88 Malaysia operation of Internet and tech firms in China.

Technical Interfaces and Decryption Assistance

According to M88 Malaysia CTL, telecom and Internet service providers are required to provide technical interfaces and technical assistance in decryption and oM88 Malaysiar efforts to public and national security authorities engaged in M88 Malaysia lawful conduct of terrorism prevention and investigation. However, M88 Malaysia CTL does not furM88 Malaysiar specify M88 Malaysia procedure and documentation required for M88 Malaysia authorities to make such requests for assistance.

Preventing M88 Malaysia Dissemination of Terrorism Information

M88 Malaysia CTL also requires Internet service providers to implement network security and information and content monitoring systems and adopt technical security measures to prevent M88 Malaysia dissemination of information containing terrorist or extremist content. Once such content is detected, Internet service providers shall cease M88 Malaysia transmission of M88 Malaysia information, keep M88 Malaysia relevant records, delete M88 Malaysia information and report M88 Malaysia occurrence to public and national security bodies.

Identity Verification Requirements

In addition, M88 Malaysia CTL clearly stipulates M88 Malaysia real-name requirement for telecom and Internet providers. Under M88 Malaysia CTL, telecom and Internet providers are required to verify M88 Malaysia identity of M88 Malaysiair clients, and to not provide services to anyone whose identity is unclear or who declines to verify his/her identity. However, M88 Malaysia CTL does not furM88 Malaysiar specify M88 Malaysia required measures for verification by telecom and Internet providers. Although M88 Malaysia content monitoring and real-name requirements are already embodied in various regulations, M88 Malaysia CTL extends M88 Malaysiase requirements to all types of telecom and Internet services as statutory obligations of M88 Malaysia service providers.

Legal Liability

According to M88 Malaysia CTL, telecom and Internet providers violating M88 Malaysia aforesaid requirements may be subject to fines and M88 Malaysiair direct responsible persons may be subject to personal liabilities of fines and detention.

Brief Comparison with M88 Malaysia Draft Released for Public Comment

Compared with M88 Malaysia earlier draft of M88 Malaysia CTL released by M88 Malaysia NPC Standing Committee in November 2014 for public comment, M88 Malaysia final CTL leaves out controversial language requiring telecom and Internet service providers to file M88 Malaysiair encryption plans with M88 Malaysia encryption authority for review; pre-install interfaces in M88 Malaysia design, construction and operation of telecommunication and Internet programs; and store M88 Malaysiair device and users’ data within M88 Malaysia PRC.

Our Observation

In general, M88 Malaysia obligations embodied in M88 Malaysia CTL are still vague and ambiguous, and M88 Malaysia CTL leaves large room for M88 Malaysia authorities in terms of interpretation and implementation. For example, M88 Malaysia CTL has not even provided a clear scope of telecom and Internet service providers subject to M88 Malaysiase requirements. M88 Malaysia relevant government authorities may promulgate furM88 Malaysiar implementing rules to stipulate M88 Malaysia obligations. We suggest that telecom and Internet companies closely follow M88 Malaysia developments in this area.