CFPB Revises Gramm-Leach-Bliley Act Examination Procedures
Institutions no longer required to provide annual privacy notice if certain criteria is met
October 28, 2016 the Consumer Financial Protection Bureau (CFPB) announced a revision to the bureau’s examination procedures concerning the Gramm Leach Bliley Act. Examiners reviewing compliance with GLBA’s implementing Regulation P [12 CFR 1016] will now find that the revised examination procedures account for the new exception that a financial institution is no longer required to provide its customers annual privacy notices if it meets the following criteria:
First, the financial institution provides nonpublic personal information to a nonaffiliated third party only in a manner that is consistent with the exceptions in GLBA [15 USC 6802(b)(2)] and Regulation P [12 CFR 1016.13 and 1016.14]. These exceptions include disclosures to perform services for, or functions on behalf of, the financial institution, including marketing of the financial institution’s own products or services, or products or services offered pursuant to a joint agreement between two or more financial institutions; and/or consistent with the exceptions in GLBA [15 USC 6802(e)] and Regulation P [12 CFR 1016.15]. These exceptions include disclosures as necessary to, among other things, effect, administer, or enforce a transaction requested or authorized by the consumer, or in connection with servicing or processing a financial product or service requested or authorized by a consumer; and
Second, the financial institution has not changed its practices and procedures with regard to disclosing nonpublic personal information from those that were most recently disclosed.
The new procedures can be accessed from the following link:
Anna DeSimone founded Bankers Advisory in 1986 and is a nationally recognized authority in residential mortgage lending. She has received numerous industry awards and has authored more than 40 best practices guides and hundreds of articles.
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