Gramm-Leach-Bliley Act (GLBA)

 

The Gramm-Leach-Bliley Act is US Federal legislation covering consumer financial privacy.             Organizations that must now adhere to GLBA regulations include banks, brokerage firms,         insurance companies, credit card providers and any other organization that handles or stores consumer financial information. 

 

The GLBA implementation deadline was 7/1/01 and requires, among other things, that:

  • Organizations must have in place appropriate safeguards to protect the security and integrity  of private financial information.

  • Organizations  must document their policies and procedures for, and monitor the use of, consumer financial information.

  • Senior management of organizations who fail to enforce confidentiality policies may be held liable for violations.

This means that policies controlling access to consumer financial information in applications, databases and data warehouses must be strictly enforced and that an audit trail of who has  accessed the information must be maintained.

 

 

Source: National Association of Insurance Commissioners (NAIC)