Gramm Leach Bliley

Gramm Leach Bliley Overview
Gramm Leach Bliley, also known as the Financial Services Modernization Act of 1999, is an act passed by Congress which mandates limited privacy protections against the sale of private financial information (PFI) to a third party.

GLB compliance is not voluntary; whether a financial institution discloses nonpublic information or not, there must be a policy in place to protect the information from foreseeable threats in security and data integrity.

Below are the requirements set forth by the standard:

The Financial Privacy Rule governs the collection and disclosure of clients' personal financial information by financial institutions. It also applies to companies, regardless of whether they are financial institutions, who receive such information. The Safeguards Rule requires all financial organizations to design, implement and maintain on a regular basis safeguards to protect client information. The Safeguards Rule applies not only to financial institutions that collect information from their own customers, but also to financial institutions that receive customer information from other financial institutions.

Organizations looking to transmit or store PFI on the Internet should take a multi-layered approach to securing their data. Security considerations should be tailored to the particular application and business process.

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