Gramm-Leach-Bliley Act

What is the Gramm-Leach-Bliley Act?

The Gramm-Leach-Bliley Act (GLB Act or GLBA) is also known as the Financial Modernization Act of 1999. It is a United States federal law that requires financial institutions to explain how they share and protect their customers' private information.

Are you subject to GLBA compliance?

GLBA applies to all businesses, regardless of size, that are “significantly engaged” in providing financial products or services to consumers. Such as:

Check-cashing Companies
Payday Lenders
Mortgage Brokers
Non-bank Lenders
Personal Property or Real Estate Appraisers
Professional Tax Preparers
Courier Services
Traditional Banks
Real Estate Settlement Companies
Insurance Companies
Security Firms
Stockbrokers
Financial Planners
Debt Collection Agencies
ATM Operators

What is the responsibilities of financial institutions?

The financial institution ensures the security and confidentiality of the customer’s records and information.
The financial institutions protects against any threats to the security or integrity of the customer’s records.
The financial institution uses all possible safeguards to prevent unauthorized access to the customer’s private information.

What are the penalties for non-compliance with GLBA?

GLBA calls for severe civil and criminal penalties for noncompliance, including fines and imprisonment. If a financial institution violates GLBA:

The institution will be subject to a civil penalty of not more than $100,000 for each violation
Officers and directors of the institution will be subject to, and personally liable for, a civil penalty of not more than $10,000 for each violation
The institution and its officers and directors will also be subject to fines in accordance with Title 18 of the United States Code or imprisonment for not more than five years, or both

How to become GLBA compliant?

Schedule a one-hour free consultation with us by filling out the simple form below. One of our compliance professionals will respond to you promptly.

About the Author: Jenny Jo

Jenny Jo is the president and co-founder of MJJT Consultants. Ms. Jo is a Software Engineer, a Cyber Security Auditor, and an IT Project Manager. She is also a Certified Informatin Security Manager (CISM) which certifies her to audit information systems, as well as design, build, and magage businesses' information security programs.