Question

A multinational financial services company is expanding operations into the European Union and must comply with GDPR requirements for customer data. The company currently stores all customer records in a centralized database hosted in their US-based data center. Which approach BEST addresses data sovereignty concerns while maintaining operational efficiency?

Accepted Answer

Implement data tokenization to replace EU customer data with tokens stored in the US while keeping actual data in EU-based storage

Answer

Deploy encryption for all customer records using AES-256 and store encrypted EU customer data in the US data center

Answer

Configure data masking to hide sensitive EU customer information when accessed by US-based administrators

Answer

Enable database replication to mirror all customer records across multiple geographic regions for redundancy