Gramm-Leach-Bliley Act (GLBA)
What is Gramm-Leach-Bliley Act (GLBA)?
Gramm-Leach-Bliley Act (GLBA)A United States federal law that requires financial institutions to safeguard customer information and explain their information-sharing practices.
The Gramm-Leach-Bliley Act (GLBA), enacted in 1999, governs how U.S. financial institutions collect, share, and protect non-public personal information (NPI) about consumers. It has three core components: the Financial Privacy Rule (privacy notices and opt-out rights), the Safeguards Rule (a written information security program with administrative, technical, and physical controls), and the Pretexting Provisions (prohibiting fraudulent access to financial data). Enforcement is shared by the FTC, the federal banking agencies, the SEC, and the CFPB depending on the institution. The 2023 Safeguards Rule update added explicit requirements for encryption, multi-factor authentication, incident response, and a qualified individual accountable for the program.
● Examples
- 01
An online lender publishing an annual privacy notice and opt-out form under the GLBA Privacy Rule.
- 02
A broker-dealer implementing MFA, encryption, and incident response procedures to meet the 2023 Safeguards Rule.
● Frequently asked questions
What is Gramm-Leach-Bliley Act (GLBA)?
A United States federal law that requires financial institutions to safeguard customer information and explain their information-sharing practices. It belongs to the Compliance & Frameworks category of cybersecurity.
What does Gramm-Leach-Bliley Act (GLBA) mean?
A United States federal law that requires financial institutions to safeguard customer information and explain their information-sharing practices.
How do you defend against Gramm-Leach-Bliley Act (GLBA)?
Defences for Gramm-Leach-Bliley Act (GLBA) typically combine technical controls and operational practices, as detailed in the full definition above.
What are other names for Gramm-Leach-Bliley Act (GLBA)?
Common alternative names include: Financial Services Modernization Act.