What regulation is the Gramm-Leach-Bliley Act?
Financial Modernization Act of 1999
The Gramm-Leach-Bliley Act (GLB Act or GLBA) is also known as the Financial Modernization Act of 1999. It is a United States federal law that requires financial institutions to explain how they share and protect their customers’ private information.
What is the Gramm-Leach-Bliley Act How does it apply to investigators?
The GLBA protects customers’ nonpublic personal financial information held by banks and other financial institutions. The Act requires such entities to protect customer information, and the protection extends to Consumer Reporting Agencies (CRAs) such as private investigation agencies.
What is the Gramm-Leach-Bliley Act quizlet?
Gramm-Leach-Bliley Act. ensure that financial institutions, including mortgage brokers and lenders, protect nonpublic personal information of consumers.
What is NPI GLBA?
GLBA terms protected information as “nonpublic personal information” or “NPI.” NPI is “personally identifiable financial information: (i) provided by a consumer to a financial institution, (ii) resulting from a transaction or service performed for the consumer, or (iii) otherwise obtained by the financial institution.” …
What is the main purpose of the Gramm-Leach-Bliley Act?
The Gramm-Leach-Bliley Act requires financial institutions – companies that offer consumers financial products or services like loans, financial or investment advice, or insurance – to explain their information-sharing practices to their customers and to safeguard sensitive data.
Why was the Gramm-Leach-Bliley Act created?
Since many regulations have been instituted since the 1930s to protect bank depositors, GLBA was created to allow these financial industry participants to offer more services. GLBA was passed on the heels of commercial bank Citicorp’s merger with the insurance firm Travelers Group.
What has been the likely effect of the Gramm-Leach-Bliley Act on financial consolidation?
What has been the likely effect of the Gramm-Leach-Bliley Act on financial consolidation? This legislation further stimulated financial consolidation of the banking industry. Thus, more financial mergers are likely to occur, which will increase both the size and complexity of financial institutions in the future.
What does Glba apply?
Gramm-Leach-Bliley Act applies to all businesses, regardless of size, that are “significantly engaged” in providing financial products or services to consumers. The law also applies to companies like credit reporting agencies and ATM operators that receive information about customers of other financial institutions.
Which of the following describes the purpose of the Gramm-Leach-Bliley Act quizlet?
The GLBA’s purpose was to remove legal barriers preventing financial institutions from providing banking, investment and insurance services together.
What is a primary component of the Gramm-Leach-Bliley Act?
There are three major components of the Gramm-Leach-Bliley Act including a Financial Privacy Rule, Safeguards Rule, and Pretexting Protection.
What is the purpose of the GLBA?
GLBA was enacted in 1999 for the purpose of implementing adequate security controls and processes pertaining to how organizations store, access and transmit confidential financial information of individuals.
What is GLBA in banking?
GLBA stands for Gramm-Leach-Bliley Act. This act is also referred to as the Financial Services Modernization Act. The GLBA primarily repealed parts of the Glass-Steagall Act by removing prohibitions against banking, insurance, and securities companies that prevented them from acting as combinations of investment banks,…
What is GLBA compliance?
GLBA Compliance. GLBA, known as the Gramm-Leach-Bliley Act, (aka the Financial Services Modernization Act) repealed the long-standing Glass-Steagall Act which barred banks from providing investment and insurance services.
What is GLBA 501B?
The Gramm-Leach-Bliley Act (GLBA) is a federal law established for regulating financial institutions in their handling of private information of individuals. Section 501(b) of the GLBA Act established the policy that each financial institution has a continuing obligation to respect the privacy of its customers and protect…