Gramm Leach Bliley Act Flashcards, test questions and answers

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What is Gramm Leach Bliley Act?

The Gramm-Leach-Bliley Act (GLBA) was passed in 1999 and is a federal law that provides protection for the security and confidentiality of consumer financial information held by financial institutions. The act requires these institutions to inform their customers about their policies regarding the collection, use, and disclosure of personal financial information.In particular, GLBA imposes requirements on financial institutions regarding how they must protect customer data, including such things as encryption protocols, access controls and audit trails. It also requires them to disclose how they are collecting, using, sharing or selling customer information both internally and externally. Additionally, the act sets forth certain restrictions on what type of customer data can be collected without express permission from the consumer.GLBA has had a significant impact on banks and other financial institutions since its passage in 1999. By requiring them to vigorously protect customer data from unauthorized use or disclosure as well as inform customers about their policies related to such issues, it helps ensure that these organizations remain accountable for their actions with respect to personal data protection. This helps reassure consumers that their private information is secure when dealing with these entities. Furthermore, by enforcing certain restrictions on what type of customer data can be collected without express permission from the consumer it gives individuals more control over how much information they share with companies they do business with thus providing additional privacy protections for consumers.