gramm leach bliley act text

The Gramm-Leach-Bliley Act (GLBA) generally requires that financial institutions send annual privacy notices to customers. Subparagraph (A) shall not apply with respect to service by any individual which is otherwise prohibited under such subparagraph if the appropriate Federal banking agency determines, by regulation with respect to a limited number of cases, that service by such individual as an officer, director, employee, or other institution-affiliated party of any insured depository institution would not unduly influence the investment policies of the depository institution or the advice the institution provides to customers. The regulations at 16 C.F.R. In Dear CPA LetterCPA-19-01, the Office of Inspector General (OIG) explained the audit procedures for auditors to determine whether institutions were complying with GLBA. It is usually found in the Note section attached to a relevant section of the Code, usually under a paragraph identified as the "Short Title". 1828a) and section 115 (12 U.S.C. The objectives of the GLBA standards for safeguarding information are to . The FTC enforces these provisions with regard to entities not specifically assigned by the provision to the Federal banking agencies or other regulators. Use our visualizations to explore scam and fraud trends in your state based on reports from consumers like you. The FTC also provides a great deal of general data security guidance on its website. 1828) is amended by adding at the end the following new subsection: Prohibition on affiliation between insured depository institutions and investment banks or securities firms. Amendment by Pub. endobj L. No. !/'r&[!Lg9jW@p "KL )DlT{8:5Dm(HzmKr{xYy=XGtU]1wNS$ZDv[DcU$SO8u%7{~sEO`2E\7gk(Tkr^d+ZYzv SBUU#$\'N_=EIDhq8UER'4&8(n@6x+r{-^?c^cRpsX&dXr\[$&B(VF*&Hn6U'/Z4M3u,bg`0 "dxm?Y\9p!82W1h:&z Mt?,`"cTcH^{x]F{=: )tL1kx.]Jn nu@y_nU{1&;I9:SGx#oHTr'7y endstream endobj 129 0 obj << /Filter [ /ASCII85Decode /FlateDecode ] /Length 12113 /Subtype /Type1C >> stream And starting in 2019 well be tracking Congresss oversight investigations of the executive branch. 1. We enforce federal competition and consumer protection laws that prevent anticompetitive, deceptive, and unfair business practices. or securities. 668.16(c), an institution is required to have an adequate system of internal controls that provides reasonable assurance that the institution will achieve its objectives regarding reporting, operations, and compliance. 0000004180 00000 n Subtitle B of title I of the Gramm-Leach-Bliley Act is amended by striking section 114 (12 U.S.C. WebThe Gramm-Leach-Bliley Act is named for the lawmakers who sponsored it: Sen. Phil Gramm (R-Texas), Rep. Jim Leach (R-Iowa) and Rep. Thomas Bliley (R-Va.). 4 0 obj GLBA related findings will have the same effect on an institutions participation in the Title IV programs as any other determination of non-compliance. 1843(j)) is amended to read as follows: Approval for certain post-1970 subsection (c)(8) activities. 3 0 obj Prohibition on banking activities by securities firms clarified. Looking for legal documents or records? Find legal resources and guidance to understand your business responsibilities and comply with the law. WebGLB. by inserting and after the semicolon at the end of paragraph (4); in paragraph (5)(B)(ii), by striking ; or and inserting a period; and. L. 106102, title V, 510, Nov. 12, 1999, 113 Stat. S. 1179. Subject to a determination under subparagraph (B), any individual described in subparagraph (A) who, as of the date of the enactment of the Return to Prudent Banking Act of 2023, is serving as an officer, director, employee, or other institution-affiliated party of any insured depository institution shall terminate such service as soon as practicable after such date of enactment and no later than the end of the 60-day period beginning on such date. Pretexting is form of social engineering in which an attacker tries to convince a victim to give up valuable information or access to a service or system. Anyone who obtains financial products or services from a company is dubbed a consumer, but consumers who maintain a continuing relationship with that institution are customers. "[B&9y>2A}N"c`:s5IL[P=XR4xu w="(.lU[_ 3[aT!x,HfWZI_>2pq9:Nj!l The data security and privacy aspects of the law were included to allay fears that this info would be misused or exploited. 2. In fact, GLBA enforcement is conducted by a number of government agenciesincluding the Federal Trade Commission, the federal banking agencies, the Consumer Financial Protection Bureau, and state insurance oversight agenciesagainst any offending companies that might fall under their purview. 1. Privacy of Consumer Financial Information Rule Under the Gramm-Leach-Bliley Act A Rule by the Federal Trade Commission on 12/09/2021 Document Details Printed Visit us on Instagram, If sponsors had their way, the lyric in Youre a Grand Old Flag would change its description of America to a country where theres never Apr 27, 2023, March 29 was an unusually busy day in Congress for one Arizona Republican. Financial institutions need to provide customers with written information explaining what information is collected about them, how that information is used, where and with whom it's shared, and how it's protected. <> An official website of the United States government. 314.4(i)). <> M}f endobj 0000005185 00000 n (b). It is the policy of the Congress that each financial institution has an affirmative and continuing obligation to respect the privacy of its customers and to protect the security and confidentiality of those customers nonpublic personal information. endobj Such institutions must develop and give notice of their privacy policies to their own customers at least annually (except where exempted under section 75001 of the Fixing America's Surface Transportation Act (FAST Act), Pub. 1811 et seq.) trailer << /Size 134 /Info 110 0 R /Encrypt 114 0 R /Root 113 0 R /Prev 102438 /ID[<5846b0805e7089b473388c4c36e8c2e1>] >> startxref 0 %%EOF 113 0 obj << /Type /Catalog /Pages 98 0 R /Metadata 111 0 R /JT 109 0 R >> endobj 114 0 obj << /Filter /Standard /R 2 /O (~}!P RZW#YvN.\n) /U (MvY_E^PJ.+w) /P -12 /V 1 /Length 40 >> endobj 132 0 obj << /S 437 /T 505 /Filter /FlateDecode /Length 133 0 R >> stream Find legal resources and guidance to understand your business responsibilities and comply with the law. L. 106-102, Nov. 12, 1999, 113 Stat. As these descriptions should make clear, getting ready for the GLBA is a big effort, but it will largely overlap with needed cybersecurity measures that any institution should be taking. As a result, often the law will not be found in one place neatly identified by its popular name. Before sharing sensitive information, make sure youre on a federal government site. \ So-called "Short Title" links, and links to particular sections of the Code, will lead you to a textual roadmap (the section notes) describing how the particular law was incorporated into the Code. You can also find guidance regarding GLBA as well as other cybersecurity resources on the FSA Partner Connect Cybersecurity page. 6701(g)). Hackers/journalists/researchers: See these open data sources. 2010Subsec. Gramm-Leach-Bliley Act An Act to Enhance Competition in the Financial Services Industry by Providing a Prudential Framework for the Affiliation of Banks, Securities Firms, Insurance Companies, and Other Financial Service Providers, and for Other Purposes Public Law 106-102, 106th Congress, S. 900 NOTE: 113 Stat. WebAct of 1956 (12 U.S.C. Find the resources you need to understand how consumer protection law impacts your business. The law applies to any business that is "significantly engaged" in providing financial products or services to consumers. Josh Fruhlinger is a writer and editor who lives in Los Angeles. Section 728 of the Regulatory Relief Act directs the agencies named in Section 504(a)(1) of the GLB Act, 15 U.S.C. 2 0 obj 1787, codified at 15 U.S.C. Web(1) to insure the security and confidentiality of customer records and information; (2) to protect against any anticipated threats or hazards to the security or integrity of such An official website of the United States government. Each institution that participates in the Title IV programs has agreed in its Program Participation Agreement (PPA) to comply with the GLBA Safeguards Rule under 16 C.F.R. The guide summarizes and explains rule amendments adopted by the Commission, but is not a substitute for any rule. Download PDF. endobj WebV, Gramm-Leach-Bliley Act (15 U.S.C. 0000007555 00000 n Subject to a determination under subparagraph (B), the Board of Governors of the Federal Reserve System may extend the 2-year period referred to in subparagraph (A) above from time to time as to any particular bank holding company for not more than 6 months at a time, if, in the judgment of the Board, such an extension would not be detrimental to the public interest, but no such extensions shall in the aggregate exceed 1 year. From the perspective of infosec pros, though, the more immediately important aspect of the Pretexting Rule is that it requires financial services institutions themselves to take affirmative steps to prevent pretexting. This Act creates a new Federal private cause of action and Federal subject matter jurisdiction for a beneficiary of a covered policy to bring a civil action against the insurer for the covered policy or a related company of the insurer to recover proceeds due under the covered policy or otherwise to enforce any rights under the covered policy. Definition of activities closely related to banking. Privacy notices like these need to be issued at the beginning of a customer's relationship with an institution and at least once per year thereafter; updated versions of the information must be issued when privacy policies change. Note that while the following provides a summary of the requirements, your best source of information is the text of theSafeguards Ruleitself and GLBA guidance provided by the FTC. ); (3)AAa covered entity or business associate governed by the privacy, security, and breach notification rules issued Short title This Act may be cited as the Return to Prudent Banking Act of 2023. The text of the bill below is as of Apr 18, 2023 (Introduced). Webwashington state law library; town center east, building 3 243 israel road se tumwater, wa 98501 (360) 357-2136; mail: p.o. Now what? 24, as amended by section 16 of the Banking Act of 1933 and subsequent amendments) and section 21 of the Banking Act of 1933 (12 U.S.C. The FTC is one of the primary enforcement arms; it notched a recent settlement with PayPal over violations from the company's Venmo service, for instance. Learn more about your rights as a consumer and how to spot and avoid scams. 0000001912 00000 n It is a United States federal law that requires financial 314.4(d)). endobj Institutions should coordinate with their leadership and appropriate staff to implement the requirements in the Final Rule by June 9. Likens., In the Matter of, 77 Investigations, Inc. and Reginald Kimbro, CEO Group, Inc. d/b/a Check Em Out, and Scott Joseph. The third major data privacy aspect of the GLBA is the Pretexting Rule. WebText for S.900 - 106th Congress (1999-2000): Gramm-Leach-Bliley Act. Summary of H.R.2714 - 118th Congress (2023-2024): To repeal certain provisions of the Gramm-Leach-Bliley Act and revive the separation between commercial banking and the securities business, in the manner provided in the Banking Act of 1933, the so-called "Glass-Steagall Act", and for other purposes. Title V boldly introduces the topic of Privacy and the Disclosure of Nonpublic Personal Information. Search the Legal Library instead. We work to advance government policies that protect consumers and promote competition. Add a note about this bill. The Infosec Institute outlines ten top-level steps your infosec or IT organization needs to take in order to be GLBA compliant: A risk assessment is an important part of the threat modeling process that many infosec teams do as a matter of course. Any affiliation of an insured depository institution with any broker or dealer, any investment adviser, any investment company, or any other person, as of the date of the enactment of the Return to Prudent Banking Act of 2023, which is prohibited under paragraph (1) shall be terminated as soon as practicable and in any event no later than the end of the 2-year period beginning on such date of enactment. The term related company means an affiliate, as that term is defined in section 104(g) of the Gramm-Leach-Bliley Act (15 U.S.C. Looking for legal documents or records? When it comes to data security and privacy compliance requirements under the GLBA, there are three main sets of regulationseach called a Rule in regulation-speakthat IT needs to worry about: the Financial Privacy Rule, the Safeguard Rule, and the Pretexting Rule. Memo from Chair Lina M. Khan to commission staff and commissioners regarding the vision and priorities for the FTC. WebThe GrammLeachBliley Act (GLBA), also known as the Financial Services Modernization Act of 1999, (Pub.L. %PDF-1.5 % 1 0 obj Help us develop the tools to bring real-time legislative data into the classroom. WebThe Gramm-Leach-Bliley Act (GLBA), also known as the Financial Services Modernization Act of 1999 (15 USC 6801 et seq. The law requires In Dear Colleague LettersGEN-15-18andGEN-16-12, we reminded institutions about the longstanding requirements of GLBA and notified them of our intention to begin enforcing the legal requirements of GLBA through annual compliance audits. 6801 Part 314. Youve cast your vote. The Gramm-Leach-Bliley Act requires financial institutions companies that offer consumers financial products or services like loans, financial or investment advice, or insurance to explain their information-sharing practices to their customers and to safeguard sensitive data. No appropriate Federal banking agency, by regulation, order, interpretation, or other action, and no court within the United States may construe the paragraph designated the Seventh of section 5136 of the Revised Statutes of the United States (12 U.S.C. Subsection (a) of section 206 of the Gramm-Leach-Bliley Act (15 U.S.C. Part 314. We enforce federal competition and consumer protection laws that prevent anticompetitive, deceptive, and unfair business practices. For instance, if you have a checking and savings account at Bank A, you're Bank A's customer; if you don't have an account at Bank B but use their conveniently located ATM to withdraw cash from your account at Bank A, from Bank B's perspective you're only a consumer. Join 10 million other Americans using GovTrack to learn about and contact your representative and senators and track what Congress is doing each day. 1844(c)) is amended. 0000003542 00000 n Lina M. Khan was sworn in as Chair of the Federal Trade Commission on June 15, 2021. On the other hand, government agencies can and do include GLBA compliance criteria in their audits of institutions covered by the Act. by redesignating paragraph (5) as paragraph (3). Section 18 of the Federal Deposit Insurance Act (12 U.S.C. Updates to the Gramm-Leach-Bliley Act Cybersecurity Requirements, (GENERAL-23-09) Parts 160 and 164, established under the Health Insurance Slaughter. Ensure the security and confidentiality of student information; Protect against any anticipated threats or hazards to the security or integrity of such information; and. WebIn 2006, the Financial Services Regulatory Relief Act (Relief Act) amended the GLBA. The current information security requirements that institutions must meet are the GLBA Safeguards Rule requirements at 16 C.F.R. Parts 160 and 164, established under the Health Insurance rZ An official website of the United States government. is amended by striking section 45. When it comes to the Privacy Rule, the GLBA makes a distinction between different types of people a company interacts with. !`MBq!O!Xe=xB7p4IjPw 0jb7cZ5>$. Memo from Chair Lina M. Khan to commission staff and commissioners regarding the vision and priorities for the FTC. L. 111203 effective on the designated transfer date, see section 1100H of Pub. 1831w). Gramm-Leach-Bliley Act (Privacy of Consumer Financial Information) Introduction . Or, as another example, if you apply for a loan at Bank C and have no pre-existing relationship with them, you're still only considered a consumer; you become a customer only if the loan is approved and you receive the money. 0000006100 00000 n This is part of a new project to develop better tools for bringing real-time legislative data into the classroom. Rapp, James J., and Regana L. Rapp d/b/a Touch Tone Information, Inc. NovaStar Financial, Inc. and NovaStar Mortgage Inc. 16 CFR Part 314: Standards for Safeguarding Customer Information (Supplemental Notice of Proposed Rulemaking), 16 CFR Part 314: Standards for Safeguarding Customer Information (Final Rule), 16 CFR Part 313: Privacy of Consumer Financial Information Rule under the Gramm-Leach-Bliley Act, Ascension Data & Analytics, LLC; Analysis To Aid Public Comment, Agency Information Collection Activities; Submission for OMB Review; Comment Request (Privacy Rule), Agency Information Collection Activities; Proposed Collection; Comment Request (Privacy Rule), Postponement of Public Workshop Related to Proposed Changes to the Safeguards Rule, DealerBuilt/LightYear Dealer Technologies; Analysis To Aid Public Comment, 16 CFR Part 314: Standards for Safeguarding Customer Information; Extension of Deadline for Submission of Public Comments, Privacy of Customer Financial Information-Security; Advance Notice Of Proposed Rulemaking And Request For Comment, Final Model Privacy Form Under the Gramm-Leach-Bliley Act - 16 CFR Part 313, Standards for Safeguarding Customer Information; Final Rule - 16 CFR Part 314, Privacy of Consumer Financial Information; Final Rule - 16 CFR Part 313, Privacy of Consumer Financial Information; Proposed Rule - 16 CFR Part 313, Keynote Remarks of Commissioner Christine S. Wilson at the Privacy + Security Academy, Opening Remarks of Chairman Joseph Simons at FTC Equifax Press Conference, Opening Remarks of Commissioner Terrell McSweeny. Provision allowing for exceptions after report to the Congress. Statement Regarding the Termination of CalPortland Companys Attempted Acquisition of Assets Owned by Rival Cement Producer Martin Marietta Materials, Inc. Is Franchising Fair? box 40751 olympia wa 98504-0751 If you teach United States government and would like to speak with us about bringing legislative data into your classroom, please reach out! This is, obviously, a very broad mandate, though the good news is that it's obviously also a set of best practices that any organization that retains personal data ought to be following anyway; it's also broadly similar to regulatory mandates imposed on other industries like health care, so companies covered by multiple sets of regulations shouldn't have to duplicate work. Sponsor: The FTCs regulations require that the information security program contains administrative, technical, and physical safeguards that are appropriate to the size and complexity of the institution or servicer, the nature and scope of their activities, and the sensitivity of any student information. WebThis paper examines the impact of Gramm-Leach-Bliley Act across three main sectors of the financial services industry: commercial banks, insurance companies, and brokerage firms, taking account of the wealth effect associated with the announcement. The process of incorporating a newly-passed piece of legislation into the Code is known as "classification" -- essentially a process of deciding where in the logical organization of the Code the various parts of the particular law belong. prohibits obtaining customer information of a financial institution by false pretenses. Finally, acts may be referred to by a different name, or may have been renamed, the links will take you to the appropriate listing in the table. Abstract. Each time the Board of Governors of the Federal Reserve System, the Comptroller of the Currency, or another appropriate Federal banking agency makes a determination or an extension under subparagraph (B) or (C) of paragraph (2) or (3) of section 18(bb) of the Federal Deposit Insurance Act (as added by section 2(a)) or subparagraph (B) or (C) of subsection (a)(2) or (b)(2) of section 3, as the case may be, the Board, Comptroller, or agency shall promptly submit a report of such determination or extension to the Congress. HTQj@}Ygv5/"M";eag|BG y ^#XmRdPRj"\mc@FRDq+7{ER6{,_{kDF0Z"nd/b>oOc%"!a(N9!`bH.^"3=TgoNqe#k# ^TW=\wR}B >r? Integrity Security & Investigation Services, Inc. Superior Mortgage Corp., In the Matter of, Sunbelt Lending Services, Inc., In the Matter of, Nationwide Mortgage Group, Inc., and John D. Eubank, In the Matter of. The Safeguards Rule took effect ABOUT THE GLB ACT The Gramm-Leach-Bliley Act was enacted on November 12, 1999. 0000002995 00000 n Section 8(c) of the International Banking Act of 1978 (12 U.S.C. You'll need to: The Safeguard Rule's mandates are generally phrased in terms of outcomes rather than specific infosec techniques that are required to achieve those outcomes. 6801 et seq.) by redesignating clauses (ii) and (iv) as clauses (i) and (ii), respectively. The Act also prevents financial institutions from disclosing individuals' nonpublic personal information which is confidential. Short title. Launched in 2004, GovTrack helps everyone learn about and track the activities of the United States Congress. WebV, Gramm-Leach-Bliley Act (15 U.S.C. Therefore, an institution that does not provide for the security of the information it needs to continue its operations would not be administratively capable. 0000005709 00000 n 3106(c)) is amended by striking paragraph (3). ]JX9&TN:pP2U:'%#yqQ_ ,0C5)4KzOD^W [~A5R&16 uveAgH)djZ^rM_8#!yVxW5B$} W(hgV9&O|"jJBk=DP N?nxs!]I)$y@qK endstream endobj 122 0 obj << /Filter [ /ASCII85Decode /FlateDecode ] /Length 312 /Subtype /Type1C >> stream We hope to make GovTrack more useful to policy professionals like you. Title V, Subtitle A of the Gramm-Leach-Bliley Act (GLBA) 1 . Make sure you're in compliance nowit'll protect both you and your customers. 0000002543 00000 n It's also worth noting that, from the GLBA's perspective, part of safeguarding data involves having business continuity and disaster recovery plans in place, in case some catastrophic breach or data loss occurs that will affect your customers. 1. c t`njNSj:;LpCY2nu#NeNu(}:ON? 314.4(c)(1) through (8). Webwashington state law library; town center east, building 3 243 israel road se tumwater, wa 98501 (360) 357-2136; mail: p.o. By joining our advisory group, you can help us make GovTrack more useful and engaging to young voters like you. To repeal certain provisions of the Gramm-Leach-Bliley Act and revive the separation between commercial banking and the securities business, in the manner provided in the Banking Act of 1933, the so-called Glass-Steagall Act, and for other purposes.
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