GLBA Fundamentals (Part-1)

What is the GLBA?

The Gramm-Leach-Bliley Act (GLBA), enacted in 1999, is a U.S. federal law that mandates financial institutions to protect the privacy and security of consumers’ non-public personal information (NPI). It aims to ensure that companies handling sensitive financial data maintain transparency, accountability, and safeguards against misuse or breaches.

To whom does GLBA apply?

GLBA applies to organizations defined as financial institutions, which broadly includes:

• Banks, credit unions, and mortgage lenders.
• Insurance companies and investment firms.
• Debt collection agencies, tax preparation services, and financial advisors.
• Businesses offering loans, check-cashing, or payment processing services.

Essentially, any company significantly engaged in financial activities that involve consumer data falls under GLBA.

GLBA 3 Regulation Rules

Key Rules Under GLBA

1. Privacy Rule:

• Requires financial institutions to provide customers with a clear privacy notice…