Sure.
That's the root of the contention between the EU and the U.S.—that you must have a sufficiency realm that the data is going to that maintains the European threshold or else they don't allow the data to be transferred. That's been the tremendous contention of the Europeans in standing up for European citizens.
If you have these rules here but they can move to another jurisdiction that has lower standards, then all of those protections are stripped. If it's boomeranging across, going from coast to coast in Canada, but it boomerangs through a node in the U.S., it's all stripped.