In cases where no data breaches have occurred and the institutions or servicers security systems have not been compromised, if the Department determines that an institution or servicer is not in compliance with all of the Safeguards Rule requirements, the institution or servicer will need to develop and/or revise its information security program and provide the Department with a Corrective Action Plan (CAP) with timeframes for coming into compliance with the Safeguards Rule. endobj In line with the older Fair Credit Reporting Act, the Privacy Rule also requires that institutions give consumers the ability to forbid the financial institution from sharing their information with unaffiliated third parties. 0000008401 00000 n The GrammLeachBliley Act (GLBA) provides customers to have secured information by financial institutions. Our mission is to empower every American with the tools to understand and impact Congress. 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. The Gramm-Leach-Bliley Act (GLBA), signed into law last November, authorized the certification of financial holding companies, the structure that looks to be the main vehicle for linking commercial banks with securities firms, insurance firms, and merchant banking. When it comes to the Privacy Rule, the GLBA makes a distinction between different types of people a company interacts with. Prohibition on banking activities by securities firms clarified. Copyright 2020 IDG Communications, Inc. Add a note about this bill. Gramm-Leach-Bliley Act, Information Privacy, and V0! Regulatory Agency. Join GovTrack.uss Inner Circle With a Yearly Membership, In retaliation for prosecutor Alvin Bragg indicting Trump, ALVIN Act would ban federal funds for, On March 29, Arizona Republican Andy Biggs introduced a (possible record) 521 bills in one day, No More Political Prosecutions Act would give presidents like Trump option to move their legal. Memo from Chair Lina M. Khan to commission staff and commissioners regarding the vision and priorities for the FTC. 378) by the Supreme Court of the United States in the case of Investment Company Institute v. Camp (401 U.S. 617 et seq. !`MBq!O!Xe=xB7p4IjPw 0jb7cZ5>$. Information security safeguards are fundamental to a system of internal controls and essential for preventing disruption to these core objectives as they guard the information systems that collect, maintain, process, and disseminate student information. 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? Launched in 2004, GovTrack helps everyone learn about and track the activities of the United States Congress. ensure that financial institutions, including mortgage brokers and lenders, protect nonpublic personal information of consumers. | Congress.gov | Library of Congress IN THE HOUSE OF REPRESENTATIVES April 19, 2023 11494, 129 Stat. The Safeguards Rule took effect ABOUT THE GLB ACT The Gramm-Leach-Bliley Act was enacted on November 12, 1999. (More Info). Limitation on agency interpretation or judicial construction. Slaughter. 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. Memo from Chair Lina M. Khan to commission staff and commissioners regarding the vision and priorities for the FTC. 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. 6701(g)). It is a United States federal law that requires financial 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. This is part of a new project to develop better tools for bringing real-time legislative data into the classroom. Consumer Financial Protection [ 1] The GLBA provides a framework for regulating the privacy and data security practices of a broad range of financial institutions. The FTC also provides a great deal of general data security guidance on its website. (1971)) with regard to the permissible activities of banks and securities firms, except to the extent expressly prescribed otherwise by this section. Wall between commercial banks and securities activities reestablished. You are encouraged to reuse any material on this site. 1831w). Institutions violating the law can be fined up to $100,000 for each violation. While many of these rules represent best IT practices, the legal stakes of noncompliance are high, with big fines and even potential jail time looming for those who fall short. Responsible individuals at those institutionsgenerally company officers or members of the board of directorscan be personally fined up to $10,000 for each violation, Those individuals may also be sentenced to up to 5 years in prison. L. 111203 inserted ,other than the Bureau of Consumer Financial Protection, after section 6805(a) of this title in introductory provisions. 335) is amended by striking the last sentence. On February 28, 2020, we issued an Electronic Announcement that explained the Departments procedures for enforcing those requirements and the potential consequences for institutions or servicers that fail to comply. <>stream As a result, often the law will not be found in one place neatly identified by its popular name. Please note that compliance with the GLBA requirements is not the same as compliance with NIST 800-171. endobj The site is secure. 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 For instance, there's no specific GLBA password requirements; instead, GLBA-covered institutions are expected to follow contemporary best practices for authenticating access to personal data, which in practice today would include an appropriate password regime. An institutions or servicers written information security program must include the following nine elements included in the FTCs regulations: Element 1: Designates a qualified individual responsible for overseeing and implementing the institutions or servicers information security program and enforcing the information security program (16 C.F.R. The general public may be most aware of the GLBA in the context of debates as to whether it helped cause the 2008 subprime mortgage crisis, but for IT professionals, it's much better known for the data security and privacy mandates it imposes on a wide range of companies and organizations, even beyond the banking industry. c t`njNSj:;LpCY2nu#NeNu(}:ON? A@Eag;>i!/z,4|$fL[c{U#Vg[([email protected]@Z=HBn8!yB^0 IYU^;'l"ls2b3AwBmBQ Sponsor: Sometimes they are a way of recognizing or honoring the sponsor or creator of a particular law (as with the 'Taft-Hartley Act'). Under the Standards of Administrative Capability at 34 C.F.R. Gramm-Leach-Bliley Act - International Association of Privacy Definition of activities closely related to banking. This Electronic Announcement provides a summary of the changes to the GLBA requirements resulting from the Final Rule, explains the impacts of the changes on postsecondary institutions, and describes changes to the Department of Educations (Department) enforcement of the GLBA requirements. L. 106102, title V, 510, Nov. 12, 1999, 113 Stat. Pub. Gramm-Leach-Bliley Act | Federal Trade Commission WebFinally, 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. Ensure the security and confidentiality of student information; Protect against any anticipated threats or hazards to the security or integrity of such information; and. Gramm Leach Bliley Act 7 0 obj Section 21 of the Banking Act of 1933 (12 U.S.C. 0000004180 00000 n Looking for legal documents or records? 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. The GLBA is also known as the Financial Services Modernization Act of 1999. Apr 25, 2023. L. No. Likens., In the Matter of, 77 Investigations, Inc. and Reginald Kimbro, CEO Group, Inc. d/b/a Check Em Out, and Scott Joseph. Text 0JjvQ R Institutions should coordinate with their leadership and appropriate staff to implement the requirements in the Final Rule by June 9. by striking paragraph (6) and all that follows through the end of such subsection. 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. 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. 6821 et seq.) WebThe GrammLeachBliley Act (GLBA), also known as the Financial Services Modernization Act of 1999, (Pub.L. Search the Legal Library instead. 1844) is amended by striking subsection (g). We find that the law has a differential impact across the financial services industry. others, or safeguarding financial assets other than money. These would take the form of strict requirements about evidence people need to provide to prove they have the right to information they're trying to access, along with staff training to recognize and push back against phishing and other forms of pretexting. CSO |. 78c(a)(4)(B)) is amended, by striking clauses (i), (iii), (v), (vii), (x), and (xi); and. '>U,BxPL6xZg.s\ =D;2HE]^;e9IDKz|a\)d`LEo#W\nQ";aIw-_F\(/U.) /FontFile3 129 0 R >> endobj 120 0 obj << /Type /Font /Subtype /Type1 /FirstChar 32 /LastChar 151 /Widths [ 278 296 389 556 556 833 815 204 333 333 500 606 278 333 278 278 556 556 556 556 556 556 556 556 556 556 278 278 606 606 606 444 737 722 722 722 778 722 667 778 833 407 556 778 667 944 815 778 667 778 722 630 667 815 722 981 704 704 611 333 606 333 606 500 333 556 556 444 574 500 333 537 611 315 296 593 315 889 611 500 574 556 444 463 389 611 537 778 537 537 481 333 606 333 606 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 204 204 0 0 0 556 1000 ] /Encoding /WinAnsiEncoding /BaseFont /OPPKBE+NewCenturySchlbk-Roman /FontDescriptor 119 0 R >> endobj 121 0 obj << /Length 910 /Filter [ /ASCII85Decode /FlateDecode ] >> stream Section 5 of the Bank Holding Company Act of 1956 (12 U.S.C. \ 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. While all elements of the Safeguards Rule are vital to protecting the security of customer information, an institution or servicer may significantly reduce the risk of a security breach, and the resulting harm and inconvenience to its customers, by encrypting customer information while it is in transit outside its systems or stored on its system and by implementing multi-factor authentication for anyone accessing customer information on its systems. WebThe GLBA is a federal law that became effective in the United States In 1999. The .gov means its official. It may seem a bit strange at first that a financial services law has such a profound impact on IT and data security. L. No. The United States Code is meant to be an organized, logical compilation of the laws passed by Congress. comply with the GLBA Act 6801-6809, 6821-6827, Competition and Consumer Protection Guidance Documents, An Inquiry into Cloud Computing Business Practices: The Federal Trade Commission is seeking public comments. 314.3(b)). Our public interest mission means we will never put our service behind a paywall. 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. 0000006100 00000 n %yH@[email protected]]Clt`k=I[/BX*"AWpxjh,7bR4Eq[uL&-ey9D/1R*p95.^?s/KZ5/q-jj!h#,!Q The law applies to any business that is "significantly engaged" in providing financial products or services to consumers. Spot the latest COVID scams, get compliance guidance, and stay up to date on FTC actions during the pandemic. 0000001782 00000 n 314.4(h)). 378) is amended by adding at the end the following new subsection: For purposes of this section, the term business of receiving deposits includes the establishment and maintenance of any transaction account (as defined in section 19(b)(1)(C) of the Federal Reserve Act). <>stream 314.4(f)). We enforce federal competition and consumer protection laws that prevent anticompetitive, deceptive, and unfair business practices. On December 9, 2021, the Federal Trade Commission (FTC) issued final regulations (Final Rule) to amend the Standards for Safeguarding Customer Information It might have even set a record. This process will be necessary for each IP address you wish to access the site from, requests are valid for approximately one quarter (three months) after which the process may need to be repeated. Sun Spectrum Communications Organization, Inc., et al. H.R.2714 - 118th Congress (2023-2024): To repeal certain Nor will a full-text search of the Code necessarily reveal where all the pieces have been scattered. endobj WebGramm-Leach-Bliley Act The commonly used name for The Financial Services Modernization Act of 1999. Interagency Guidelines Establishing Information Security 0000001588 00000 n 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. Your note is for you and will not be shared with anyone. 1338. An official website of the United States government. 314.4(d)). 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. The appropriate Federal banking agency, after opportunity for hearing, may terminate, at any time, the authority conferred by the preceding subparagraph to continue any affiliation subject to such subparagraph until the end of the period referred to in such subparagraph if the agency determines, having due regard for the purposes of this subsection and the Return to Prudent Banking Act of 2023, that such action is necessary to prevent undue concentration of resources, decreased or unfair competition, conflicts of interest, or unsound banking practices and is in the public interest. If you want to request a wider IP range, first request access for your current IP, and then use the "Site Feedback" button found in the lower left-hand side to make the request. In addition to reforming the financial services industry, the Act addressed concerns relating to consumer financial privacy. 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. rZ To repeal certain provisions of the Gramm-Leach-Bliley Act and revive the separation between commercial banking and the securities business, in the manner 0000020628 00000 n Element 8: For an institution or servicer maintaining student information on 5,000 or more consumers, addresses the establishment of an incident response plan (16 C.F.R. WebThe Gramm Leach Bliley Act (GLBA) is a law that applies to financial institutions and includes privacy and information security provisions that are designed to protect consumer financial 0000000809 00000 n 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. Institutions and servicers also sign the Student Aid Internet Gateway (SAIG) Enrollment Agreement, which states that they will ensure that all Federal Student Aid applicant information is protected from access by, or disclosure to, unauthorized personnel, and that they are aware of and will comply with all of the requirements to protect and secure data obtained from the Departments systems for the purposes of administering the Title IV programs. Orderly wind-down of existing affiliation. 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. Lina M. Khan was sworn in as Chair of the Federal Trade Commission on June 15, 2021. (1971)) as to the construction and the purposes of such provisions. Franchisee Conversations with Chair Khan and Cmr. Short title. endobj WebV, Gramm-Leach-Bliley Act (15 U.S.C. Final Model Privacy Form Under the Gramm-Leach-Bliley Act Gramm 314.4(c)(1) through (8). If you have questions regarding any of the GLBA requirements, please contact the FTC at 202-326-2222.