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Governance, Risk, Audit & Privacy · Intermediate

Gramm-Leach-Bliley Act (GLBA)

1999 US law requiring financial institutions to protect customers' nonpublic personal information and disclose privacy practices.

Definition

GLBA's Financial Privacy Rule requires privacy notices and an opt-out for sharing with nonaffiliated third parties; the Safeguards Rule requires an information security program; pretexting provisions prohibit obtaining customer information under false pretenses. The FTC's amended Safeguards Rule requires a qualified individual, risk assessment, encryption, MFA, and notifying the FTC of events affecting 500 or more consumers within 30 days.

Example

A mortgage broker must send a privacy notice and offer an opt-out before sharing data with unaffiliated marketers.

Exam tip

GLBA protects nonpublic personal information (NPI) held by financial institutions.

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