gramm leach bliley act text

Download PDF. Limitation on agency interpretation or judicial construction. It might have even set a record. Institutions or servicers that maintain student information for fewer than 5,000 consumers are only required to address the first seven elements. 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. %yH@ZZ8S-!$kC6=Rj@lExtQeY.OBkkn5L2]Clt`k=I[/BX*"AWpxjh,7bR4Eq[uL&-ey9D/1R*p95.^?s/KZ5/q-jj!h#,!Q 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. Search the Legal Library instead. 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. You'll find three types of link associated with each popular name (though each law may not have all three types). by redesignating paragraph (5) as paragraph (3). 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. 1820a). SM_Y9d1`uwUN:t m^3_ . Also, Sections 131-133 of the Act (15 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.). The Gramm-Leach-Bliley Act (GLB Act) of 1999 sought to provide new rules for financial privacy. 1828b, 1849) clarify the application of the FTC Act and other FTC statutes to subsidiaries and other affiliates of depository institutions, and provide for certain interagency information sharing. Sometimes these names say something about the substance of the law (as with the '2002 Winter Olympic Commemorative Coin Act'). Subject to a determination under subparagraph (B), an appropriate Federal banking agency may extend the 2-year period referred to in subparagraph (A) from time to time as to any particular insured depository institution for not more than 6 months at a time, if, in the judgment of the agency, such an extension would not be detrimental to the public interest, but no such extensions shall in the aggregate exceed 1 year. box 40751 olympia wa 98504-0751 The Financial Privacy Rule (generally just shortened to the Privacy Rule) is relatively straightforward. Make sure you're in compliance nowit'll protect both you and your customers. M?cW 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. 30 Minute Mortgage, Inc., Gregory P. Roth, and Peter W. Stolz, Garrett, Paula L. d/b/a Discreet Data Systems, Guzzetta, Victor L., d/b/a Smart Data Systems, Information Search, Inc., and David J. Kacala (District of Maryland, Northern Division). endobj 4. S.900 - Gramm-Leach-Bliley Act 106th Congress (1999-2000) Law Hide Overview . In addition to reforming the financial services industry, the Act addressed concerns relating to consumer financial privacy. BpcUNy!6g82ja3u|jMM#GHR! If you teach United States government and would like to speak with us about bringing legislative data into your classroom, please reach out! !/'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 6801 et seq.) 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. The Congress ratifies the interpretation of the paragraph designated the Seventh of section 5136 of the Revised Statutes of the United States (12 U.S.C. Find the resources you need to understand how consumer protection law impacts your business. 314.4(a)). Youve cast your vote. 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. As you might expect, data privacy requirements are stricter for customers. on the GLB Act requirements for financial privacy notices. <> In making any determination under paragraph (1), the Board shall consider whether performance of the activity by a bank holding company or a subsidiary of such company can reasonably be expected to result in a violation of section 18(bb) of the Federal Deposit Insurance Act, section 21 of the Banking Act of 1933, or the spirit of section 2(c) of the Return to Prudent Banking Act of 2023, and other possible adverse effects, such as undue concentration of resources, decreased or unfair competition, conflicts of interests, or unsound banking practices. GovTrack.us is not a government website. The Gramm-Leach-Bliley Act is a U.S. federal law created to control how financial institutions deal with a consumers non-public personal information (NPI). Notwithstanding the limitation of the January 1, 1970, approval deadline in subsection (c)(8), the Board may determine an activity to be so closely related to banking as to be a proper incident thereto for purposes of such subsection, subject to the requirements of this subsection and such terms and conditions as the Board may require. Section 6801 et seq. 0000007555 00000 n 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. It may seem a bit strange at first that a financial services law has such a profound impact on IT and data security. 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. Privacy pros zero in on Title V, Subtitle A of the GLBA (15 U.S.C. The https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely. There are two different processes that people might be referring to when they talk about a GLBA audit. The GLBA is also known as the Financial Services Modernization Act of 1999. Spot the latest COVID scams, get compliance guidance, and stay up to date on FTC actions during the pandemic. Looking for legal documents or records? q(4cY7-;xb/8" ^k 8F|$@OH4hd{}Qw2TPnvL@D\}/x(`{#AzlV}r8#$3Xlyh?/mulVHqXsBl6'O U)@P3h^IdIZVvs?L7\a H==ta<1A>OQ2fGR`?`'q_ a)0Y}XdMO}4]?q@2UtrQhp Ms. Kaptur (for herself, Ms. Norton, Ms. Omar, Ms. Pingree, Ms. Wild, Ms. Tlaib, Mr. Pocan, and Mrs. Watson Coleman) introduced the following bill; which was referred to the Committee on Financial Services. We hope to enable educators to build lesson plans centered around any bill or vote in Congress, even those as recent as yesterday. Subject to a determination under subparagraph (B), the Comptroller of the Currency may extend the 2-year period referred to in subparagraph (A) above from time to time as to any particular national bank for not more than 6 months at a time, if, in the judgment of the Comptroller, such an extension would not be detrimental to the public interest, but no such extensions shall in the aggregate exceed 1 year. WebIn 2006, the Financial Services Regulatory Relief Act (Relief Act) amended the GLBA. 0000003542 00000 n 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. 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. The distinguishing feature of this kind of attack is that the scam artists comes up with a storyor pretextin order to fool the victim. The Gramm-Leach-Bliley Act (G-L-B) versus Best Practices in Network Security. 0000000897 00000 n 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. 0000005709 00000 n Pub. Please note that compliance with the GLBA requirements is not the same as compliance with NIST 800-171. 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. Pub. the purposes of this Act and the Gramm-Leach-Bliley Act, the following activities as, and the extent to which such activities are, financial in nature or incidental to a financial activity: (A) Lending, exchanging, transferring, investing for. 24, as amended by section 16 of the Banking Act of 1933 and subsequent amendments), section 21 of the Banking Act of 1933, or section 18(bb) of the Federal Deposit Insurance Act more narrowly than the reasoning of the Supreme Court of the United States in the case of Investment Company Institute v. Camp (401 U.S. 617 et seq. These notices must describe the privacy practices of financial institutions, including whether and how they share customers nonpublic personal information. The FTC also provides a great deal of general data security guidance on its website. An individual who is an officer, director, partner, or employee of any broker or dealer, any investment adviser, any investment company, or any other person engaged principally in the issue, flotation, underwriting, public sale, or distribution at wholesale or retail or through syndicate participation of stocks, bonds, debentures, notes, or other securities may not serve at the same time as an officer, director, employee, or other institution-affiliated party of any insured depository institution. Because you are a member of panel, your positions on legislation and notes below will be shared with the panel administrators. 24a) is amended to read as follows: In the case of a national bank which, pursuant to the amendments made by paragraph (1), is no longer authorized to control or be affiliated with a financial subsidiary as of the date of the enactment of this Act, such affiliation 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. Place hold Add to cart The Gramm Leach Bliley Act (GLB or GLBA) was enacted in 1999. | Congress.gov | Library of Congress 2'4R!`Y# !;_V.|r,/u;^Iq8yB^ug! Amendment by Pub. 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. Parts 160 and 164, established under the Health Insurance WebGrammLeachBliley Act (GLBA), Regulation R, and Retail Nondeposit Investment Sales The Gramm-Leach-Bliley Act sets forth certain exceptions for banks from the broker-dealer registration requirements of the Securities and Exchange Act of 1934. by redesignating clauses (ii), (iv), (vi), (viii), and (ix) as clauses (i), (ii), (iii), (iv), and (v), respectively. 6803(e). Subtitle B of Title V (15 U.S.C. 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. We are excited to now be on Mastodon, a social network developed by and for its users. The changes to the Safeguards Rule are effective June 9, 2023. ); (3)AAa covered entity or business associate governed by the privacy, security, and breach notification rules issued by the United States Department of Health and Human Services, 45 C.F.R. The Graham-Leach-Bailey Act (GLBA) is a 1999 law that allowed financial services companies to offer both commercial and investment banking, something that had been banned since the Great Depression. endobj 0000001610 00000 n L. No. <> 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. The table of sections for chapter one of title LXII of the Revised Statutes of the United States is amended by striking the item relating to section 5136A. 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. As a result, often the law will not be found in one place neatly identified by its popular name. How the LII Table of Popular Names works. endobj Title V, Subtitle A of the Gramm-Leach-Bliley Act (GLBA) 1 . Lina M. Khan was sworn in as Chair of the Federal Trade Commission on June 15, 2021. WebGramm-Leach-Bliley Act The commonly used name for The Financial Services Modernization Act of 1999. 2010Subsec. 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 c t`njNSj:;LpCY2nu#NeNu(}:ON? WebThe Gramm-Leach-Bliley Act requires financial institutions companies that offer consumers financial products or services like loans, financial or investment advice, or insurance to Section 5 of the Bank Holding Company Act of 1956 (12 U.S.C. 0000007438 00000 n Our mission is protecting consumers and competition by preventing anticompetitive, deceptive, and unfair business practices through law enforcement, advocacy, and education without unduly burdening legitimate business activity. But this is not normally the case, and often different provisions of the law will logically belong in different, scattered locations in the Code. Your note is for you and will not be shared with anyone. This is a project of Civic Impulse, LLC. 0000002995 00000 n The https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely. governs the 106102, 113 Stat. 1 0 obj Before sharing sensitive information, make sure youre on a federal government site. Slaughter. The objectives of the GLBA standards for safeguarding information are to . The act re-organized financial services regulation in the 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. 0000006100 00000 n Subtitle B of title I of the Gramm-Leach-Bliley Act is amended by striking section 114 (12 U.S.C. 1828a) and section 115 (12 U.S.C. fC\huwa W.`SU`GH The regulations at 16 C.F.R. Looking for legal documents or records? ?E Mk~tEK:UiZuS:oEGQ^};_nzG+>)Ce0W!j1zA0:0%P'DN#y endstream endobj 133 0 obj 444 endobj 115 0 obj << /Type /Page /Parent 97 0 R /Resources 116 0 R /Contents 121 0 R /Thumb 58 0 R /MediaBox [ 0 0 612 792 ] /CropBox [ 0 0 612 792 ] /Rotate 0 >> endobj 116 0 obj << /ProcSet [ /PDF /Text ] /Font << /F1 120 0 R /F2 117 0 R /F3 125 0 R >> /ExtGState << /GS1 127 0 R >> >> endobj 117 0 obj << /Type /Font /Subtype /Type1 /FirstChar 32 /LastChar 151 /Widths [ 287 296 333 574 574 833 852 241 389 389 500 606 278 333 278 278 574 574 574 574 574 574 574 574 574 574 278 278 606 606 606 500 747 759 778 778 833 759 722 833 870 444 648 815 722 981 833 833 759 833 815 667 722 833 759 981 722 722 667 389 606 389 606 500 333 611 648 556 667 574 389 611 685 370 352 667 352 963 685 611 667 648 519 500 426 685 611 889 611 611 537 389 606 389 606 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1000 ] /Encoding /WinAnsiEncoding /BaseFont /OPPKBD+NewCenturySchlbk-Bold /FontDescriptor 118 0 R >> endobj 118 0 obj << /Type /FontDescriptor /Ascent 737 /CapHeight 722 /Descent -205 /Flags 262178 /FontBBox [ -165 -250 1000 988 ] /FontName /OPPKBD+NewCenturySchlbk-Bold /ItalicAngle 0 /StemV 154 /XHeight 475 /StemH 54 /CharSet (=RaaE%=m\)^M*\\{cet/m\(V\ {xJ{VX-0T}bQ+6\\S,>>KqMXt2U\ t\(yF7\\"E?k>R|) /FontFile3 130 0 R >> endobj 119 0 obj << /Type /FontDescriptor /Ascent 737 /CapHeight 722 /Descent -205 /Flags 34 /FontBBox [ -195 -250 1000 965 ] /FontName /OPPKBE+NewCenturySchlbk-Roman /ItalicAngle 0 /StemV 92 /XHeight 464 /StemH 45 /CharSet (-QGuYD\\\\[_X1fG+e_-"8tkhXT\ Uh3*p\)cE.wnl5h#! Slaughter, FTC Safeguards Rule: What Your Business Needs to Know, FTC's Privacy Rule and Auto Dealers: FAQs, How To Comply with the Privacy of Consumer Financial Information Rule of the Gramm-Leach-Bliley Act, Compliance deadline for certain revised FTC Safeguards Rule provisions extended to June 2023, New publication offers guidance on revised FTC Safeguards Rule, Updating you on FTC privacy and data security initiatives, Corporate boards: Dont underestimate your role in data security oversight, Application of Title V, Subtitle A, of the G-L-B Act, and of the Commission's Privacy Rule, to Attorneys At Law, Ascension Data & Analytics, LLC, In the Matter of, LightYear Dealer Technologies, LLC, In the Matter of, FTC v. Global Mortgage Funding, Inc., et al., SACV 02-1026 DOC, __________________, a minor, also known as _______________, by his parent ____________, Fajilan and Associates, Inc., also d/b/a Statewide Credit Services, In the Matter of, James B. Nutter & Company, a corporation, in the Matter of, Premier Capital Lending, Inc., et al., In the Matter of, American United Mortgage Company., United States of America (for the FTC), Nations Title Agency, Inc., Nations Holding Company, and Christopher M. The Safeguards Rule took effect ABOUT THE GLB ACT The Gramm-Leach-Bliley Act was enacted on November 12, 1999. 0000001588 00000 n Please sign up for our advisory group to be a part of making GovTrack a better tool for what you do. L. 111203 effective on the designated transfer date, see section 1100H of Pub. Section 5136A of the Revised Statutes of the United States (12 U.S.C. We love educating Americans about how their government works too! 11494, 129 Stat. WebV, Gramm-Leach-Bliley Act (15 U.S.C. 3106(c)) is amended by striking paragraph (3). Part 314 use the terms customer and customer information. For the purpose of an institutions or servicers compliance with GLBA, customer information is information obtained as a result of providing a financial service to a student (past or present). 314.4(d)). A@Eag;>i!/z,4|$fL[c{U#Vg[(v5!@.W@Z=HBn8!yB^0 IYU^;'l"ls2b3AwBmBQ 0000000809 00000 n 6821 et seq.) If organizations don't feel that they are up to the task of assessing their own preparedness and compliance, or if they want an honest assessment from an outsider, they can pay a third-party organization to audit their compliance. (Of course, this isn't always the case; some legislation deals with a fairly narrow range of related concerns.). Before sharing sensitive information, make sure youre on a federal government site. Institutions should coordinate with their leadership and appropriate staff to implement the requirements in the Final Rule by June 9. 6 0 obj Sometimes they are a way of recognizing or honoring the sponsor or creator of a particular law (as with the 'Taft-Hartley Act'). Element 3: Provides for the design and implementation of safeguards to control the risks the institution or servicer identifies through its risk assessment (16 C.F.R. Please join our advisory group to let us know what more we can do. 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. Pub. We hope that with your input we can make GovTrack more accessible to minority and disadvantaged communities who we may currently struggle to reach. For instance, someone might call up your bank, armed with a few pieces of information about you like your address or social security number, and try to bluff them into giving them more information, or even access to your account. WebThe Gramm-Leach-Bliley Act (GLBA), also known as the Financial Services Modernization Act of 1999, was passed in November 1999. The language of the notices may be fairly boilerplate, and indeed the SEC makes model forms available. Search the Legal Library instead. 314.4(e)). 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. Section 6801 et seq. Use our visualizations to explore scam and fraud trends in your state based on reports from consumers like you. 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 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. The first is that it explicitly makes it illegal to use pretexting to try to gain access to the information about victims held by a financial institution covered by the Act. This Act may be cited as the Return to Prudent Banking Act of 2023. Element 2: Provides for the information security program to be based on a risk assessment thatidentifies reasonably foreseeableinternal and external risks to thesecurity, confidentiality, and integrity ofcustomer information (as the term customer information applies to the institution or servicer) that could resultin the unauthorized disclosure, misuse,alteration, destruction, or othercompromise of such information, andassesses the sufficiency of anysafeguards in place to control theserisks (16 C.F.R. But the framers of the law correctly foresaw that by loosening existing banking regulations, they were opening the door to the creation of huge, sprawling firms offering an array of services ranging from checking accounts to high-end investmentsand that these companies would have access to huge amounts of customer information. One, a reference to a Public Law number, is a link to the bill as it was originally passed by Congress, and will take you to the LRC THOMAS legislative system, or GPO FDSYS site. We hope to make GovTrack more useful to policy professionals like you. 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). 1844(c)) is amended. IN THE HOUSE OF REPRESENTATIVES April 19, 2023 %PDF-1.5 % II. The Board of Governors of the Federal Reserve System, 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 Board determines, having due regard to the purposes of this Act, 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. with administrative, technical, and physical safeguards designed to protect customer information. The third major data privacy aspect of the GLBA is the Pretexting Rule. 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. st patrick church schedule,
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