Database

Since 2011, the Danish Data Protection authority has ruled in several cases against processing of local authorities' data in third countries without using standard contractual clauses. This is the result of a strict interpretation of the European Directive 95/46/EC. Therefore, services such as Dropbox, Google Apps and Microsoft's Office 365 cannot be used by local authorities unless they have signed an agreement with the processor based on standard contractual clauses.

The basis for the Audit Act (section 45) is that financial records for governamental institutions must be stored in Denmark. This applies to both physical appendixes and digital data. This regulation means that financial records may be stored on a server abroad provided that an exact copy of the records is made on a monthly basis at a minimum. Such copy must be placed on a server in Denmark or in paper.

The basis of the Bookkeeping Act (section 12) is that financial records must be stored in Denmark or in the Nordic countries. This applies to both physical appendixes and digital data. Hence, if financial records are stored on a server physically placed outside Denmark a complete copy must be kept in Denmark.