<img src="https://ws.zoominfo.com/pixel/pIUYSip8PKsGpxhxzC1V" width="1" height="1" style="display: none;">

The Gramm-Leach-Bliley Act

author Ncontracts
1 min read
Oct 31, 2018

Although new technological developments make our lives more convenient, they can also make us increasingly vulnerable to having our personal information get into the wrong hands. The Gramm-Leach-Bliley Act (GLB Act or GLBA), also known as the Financial Modernization Act, helps control the way financial institutions deal with the private information of individuals. The Act was created in 1999 and consists of three sections that define how it works to protect us.

The first section of the act is the Financial Privacy Rule. This regulates the collection and disclosure of private financial information.

The second section is the Safeguards Rule. This stipulates that financial institutions must implement security programs to protect this information.

Finally, the Pretexting provisions work to prohibit pretexting or the accessing of private information under false pretenses. The Act also requires financial institutions to give customers a written policy that explains their information sharing practices.

GLBA is not only about protecting customers. It also worked to repeal the Glass-Steagall Act of 1933, removing barriers that prohibited any one institution from acting as any combination of an investment bank, commercial bank, and insurance company. Now the three can consolidate making operations easier for both the customers and the institutions.

Of course, GLBA compliance is vital for institutions as not following the rules of the act can be a serious criminal offense. While employees can be used to make sure all stipulations of the GLBA are enforced, it may become necessary to call in a third party who can ensure that the institution is doing all it can to adhere to the terms of the act.

The GLBA is extremely important to the functioning of financial institutions, and it is essential to understand how it works to protect customers in the world of banking and finances. Make sure your employees are aware of all proper practices and call in an expert if necessary. Make privacy a priority in the way you run your business. 

 

Related: What Is A Compliance Management System And Why Your FI Needs One

Subscribe to the Nsight Blog

All Topics Risk & Compliance Product Insight Banks Lending Compliance Credit Unions Risk Management Fair Lending Nfairlending Cluster: Risk Management Compliance Lending Compliance Management Integrated Risk Blog Regulatory Compliance Management Nrisk News & Updates HMDA Risk Mortgage Lenders Vendor Management Ncomply Business Resiliency CRA Lending Compliance Blog Vendor CFPB Ncontinuity Business Continuity Third-Party Vendor Management Cybersecurity Fintech NVendor Strategic Planning Ncyber Regulatory Updates Ntransmittal Audits & Findings OCC Regulatory Compliance Company Culture Audit Nverify Compliance Management Exams FDIC Nfindings Findings NCUA Contract Management Employee Intranet Business Continuity Management Contract FRB Findings Management Enterprise Risk Management FFIEC Ncontracts manager Third-Party Vendors Vendor Risk Vendor Risk Management Wealth Management 1071 ABA Bank Access Control Artificial Intelligence Audit Findings Board Portal Call Report Compliance Risk Cybersecurity Assessment Digital Tansformation Due Diligence Efficiency Employee Engagement Exam findings FIEC Governance and Risk Management Inc. 5000 Internal Audit Management Mortgage Lending Nboardportal Verify integrated risk management
GLBA Compliance
Risk & Compliance

GLBA Compliance

Oct 31, 2018 1 min read
FFIEC Guidelines
Risk & Compliance

FFIEC Guidelines

Nov 13, 2018 1 min read
FS-ISAC: Third Parties “Still a Big Risk”
Risk & Compliance

FS-ISAC: Third Parties “Still a Big Risk”

Jun 19, 2018 3 min read