Gramm-Leach-Bliley Act, or GLBA, is a federal law enacted in the United States. It helps define and control how financial institutions handle and destroy individual’s private information. GLBA also requires financial institutions to give customers written privacy notices that explain how they use and share private financial information.
GLBA essentially has three different sections:
- The Financial Privacy Rule- This regulates the disclosure and collection of any private financial information.
- The Safeguards Rule- Specifies that financial institutions must implement security programs to protect private information.
- The Pretexting Provisions- These provisions prohibit the practice of accessing private information using false pretenses- also known as pretexting.
The Gramm-Leach-Bliley Act is also known as Gramm-Leach-Bliley Financial Services Modernization Act. To learn more about this act, please visit the Federal Trade Commission.