GLBA Privacy Rule Regulation P
United States
1999
Privacy
Overview
The Gramm-Leach-Bliley Act (GLBA) Privacy Rule, implemented as Regulation P in 2000, requires financial institutions to protect consumer financial information and provide privacy notices about data practices. The rule ensures consumers understand how their personal financial data is collected, used, and shared, granting opt-out rights for certain information sharing with non-affiliated third parties.The regulation applies to banks, credit unions, securities firms, insurance companies, mortgage lenders, payday lenders, auto finance companies, and fintech firms handling consumer financial information. Modern financial institutions increasingly rely on digital identity verification solutions to ensure GLBA compliance while streamlining customer onboarding processes. It serves as a cornerstone of U.S. data privacy compliance, working alongside the Fair Credit Reporting Act (FCRA) and supporting broader consumer protection frameworks.
Key Obligations
- Provide initial and annual privacy notices to consumers describing data-sharing practices
- Allow consumers to opt out of sharing nonpublic personal information with non-affiliated third parties
- Limit disclosures of sensitive data to what is legally permissible and necessary for business purposes
- Ensure service providers handling consumer data comply with privacy safeguards
- Maintain written policies to protect customer data and align with the GLBA Safeguards Rule
FAQ
Related Regulations
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