GLB Flashcards
What’s the purpose of th Gramm-Leach-Bliley Act and who enforces it?
The Financial Modernization Act of 1999, also known as the “Gramm-Leach-Bliley Act” or GLB Act (named after the senators responsible for drafting the law), includes provisions to protect an individual’s (not a business’s) personal financial information held by financial institutions. The Federal Trade Commission (FTC) enforces the law for institutions and businesses that are not already regulated in these matters by federal or state agencies including private lenders, check cashing services, mortgage, title and tax-preparation firms.
What are the three principal parts of the GLB act?
Financial Privacy - governs the collection and disclosure of private financial info by financial institutions.
Pre-texting - prohibits attempting to acquire personal financial information under false pretenses.
Safeguards - requires all FTC-regulated financial institutions to take steps to protect their customer’s private information. These steps include designing, implementing and maintaining customer safeguards.
