Gramm-Leach-Bliley Act
This act is also known as the Financial Modernization Act of 1999. It was enacted to control the ways private information of individuals is used by which any financial institution.
There are 3 main sections in this act:
- Financial Privacy Rule:
This regulates collection & disclosure of private financial information.
- Safeguards Rule:
Stipulates that finance providers should implement security programs for protecting private financial information.
- Pretexting Provisions:
The practice of pretexting, which means accessing any person’s private information under false pretenses is prohibited.
According to this act, financial institutions are required to give written privacy notices to customers which explains their information sharing practices.
Reference site: Gramm-Leach-Bliley Act