The Gramm-Leach-Bliley Act (GLB) is also known as the Financial Modernization Act of 1999. It includes provisions to protect consumers’ personal financial information held by financial institutions. There are three main parts to the privacy requirements: the Financial Privacy Rule, the Safeguards Rule, and pretexting provisions. This act affects financial institutions and companies that provide financial products and services to consumers.
The Financial Privacy Rule: This requires financial institutions to give customers privacy notices explaining its information collection and sharing practices. Customers have the right to limit some sharing of their information. Financial institutions and other companies that receive personal financial information may be limited in their ability to use that information.
The Safeguards Rule: This requires financial institutions to design, implements and maintain safeguards to protect the confidentiality and integrity of personal consumer information.
Pretexting provisions: This protects consumers from individuals and companies that obtain their personal financial information under false pretenses, including fraudulent statements and impersonation.