I don't believe that the law can require that the images be kept onsite. The solution is to keep images offsite, say, Argentina, or Russia. If they so demand the images, invite them to inspect where they are kept. Furthermore, have a service that prevents remote access to those images, in the name of security.
While I don't work for IBM and never have, I can tell you of two things that IBM has done, that has and has and will literally change the world. First, the IBM PC. While you may say that it was "just another microcomputer" in its day, it brought the microcomputer to the corporate desktop, and things have not been the same since. Second, recently, Watson. This is software/hardware that will change the world. Do you remember the Jeopardy shows a couple of years ago? The potential for this product is limitless, and perhaps a little scary (think "SkyNet", "Colossus", etc.) I do believe that your eye-glass prescription need adjustment to remove the shortsightedness that you have seemed to adopt.