Definition - What does Gramm-Leach Bliley Act. mean?
The Gramm-Leach-Bliley Act is a piece of legislation passed in 1999 to regulate financial institutions such as insurance companies, banks, and investment firms with regards to how they collect, store, and share their customers' private financial information. The act is also known as the Financial Services Modernization Act of 1999 and is aimed at protecting customers from unsolicited marketing, identity theft, and credit card fraud.
SureHire explains Gramm-Leach Bliley Act.
The Gramm-Leach-Bliley Act enforces compliance with five requirements. The first requirement is for financial institutions to safeguard personal information by implementing security measures to protect the customer data and mitigate any risks where the security can be breached. The second requirement is that financial institutions must advise customers in writing of their information-sharing practices with regard to protecting and divulging non-public personal information. The third requirement is for the customers of financial institutions to have their right to opt out explained, which enables them to prevent their private information from being shared with third parties. The fourth requirement is to protect customers from companies that may obtain their personal private information under false pretenses, and the fifth requirement protects customers from having their account information, such as credit card details, being shared with non-affiliated third parties.
