Gramm-Leach-Bliley Act (GLBA)
View Law TextNeed Help with Gramm-Leach-Bliley Act (GLBA) Compliance?
Get expert guidance on implementing GLBA requirements and ensuring ongoing compliance for your financial organization.
Get Expert HelpOverview
The Gramm-Leach-Bliley Act requires financial institutions to explain their information-sharing practices to customers and protect sensitive data.
Key Facts
- Enacted in 1999
- Enforced by Federal Trade Commission
- Applies to financial institutions
GLBA Rules
Financial Privacy Rule
Requirements for collection and disclosure of customers' personal financial information.
Requirements
- Privacy notice distribution
- Opt-out rights implementation
- Information sharing limitations
- Third-party disclosure restrictions
- Annual privacy notices
Examples
- Initial privacy notices
- Opt-out forms
- Information sharing agreements
- Customer consent records
Safeguards Rule
Standards for protecting customer information and requiring proper disposal of consumer information.
Requirements
- Information security program
- Risk assessment procedures
- Employee management
- Information systems security
- Service provider oversight
Examples
- Security policies
- Access controls
- Encryption protocols
- Incident response plans
Pretexting Protection
Measures to prevent and detect attempts to gain customer information through false pretenses.
Requirements
- Identity verification procedures
- Staff training programs
- Detection systems
- Response protocols
- Documentation requirements
Examples
- Authentication procedures
- Training materials
- Incident reports
- Security assessments
Compliance Requirements
Privacy Program Implementation
Establish and maintain a comprehensive privacy program for customer information.
Implementation Steps
- Designate privacy officer
- Develop privacy policies
- Create customer notices
- Implement opt-out procedures
- Train employees
Required Documentation
- Privacy policy manual
- Notice templates
- Training records
- Opt-out records
- Annual assessments
Information Security Program
Develop, implement, and maintain a comprehensive information security program.
Implementation Steps
- Conduct risk assessment
- Implement safeguards
- Monitor systems
- Test security measures
- Update procedures
Required Documentation
- Security policies
- Risk assessments
- Testing results
- Incident reports
- Review logs
Service Provider Oversight
Ensure service providers maintain appropriate safeguards for customer information.
Implementation Steps
- Select qualified providers
- Review security measures
- Execute contracts
- Monitor compliance
- Conduct audits
Required Documentation
- Due diligence records
- Service agreements
- Audit reports
- Monitoring logs
- Compliance reviews
Enforcement & Penalties
Federal Trade Commission Enforcement
The FTC has primary enforcement authority for GLBA compliance.
Penalty Categories
Example Cases
State Attorney General Enforcement
State authorities can enforce GLBA provisions within their jurisdiction.