What are the requirements of the Gramm Leach Bliley Act?
The Gramm-Leach-Bliley Act requires financial institutions – companies that offer consumers financial products or services like loans, financial or investment advice, or insurance – to explain their information-sharing practices to their customers and to safeguard sensitive data.
What does the Gramm Leach Bliley Act prohibit?
The GLB Act prohibits financial institutions from sharing account numbers or similar access numbers or codes for marketing purposes. This prohibition applies even when a consumer or customer has not opted-out of the disclosure of NPI concerning her account.
What does the Gramm Leach Bliley Act GLBA require of financial institutions Group of answer choices?
The GLBA requires that financial institutions act to ensure the confidentiality and security of customers’ “nonpublic personal information,” or NPI.
What are the three main security goals of the Gramm Leach Bliley Act security requirements?
OBJECTIVE OF THE PROGRAM: Protect the security and confidentiality of Covered Data; • Protect against anticipated threats or hazards to the security or integrity of Covered Data; and • Protect against unauthorized access to or use of Covered Data that could result in substantial harm or inconvenience to any Customer.
What is the main purpose of the Gramm Leach Bliley Act quizlet?
The GLBA’s purpose was to remove legal barriers preventing financial institutions from providing banking, investment and insurance services together.
What does GLBA apply?
Gramm-Leach-Bliley Act applies to all businesses, regardless of size, that are “significantly engaged” in providing financial products or services to consumers. The law also applies to companies like credit reporting agencies and ATM operators that receive information about customers of other financial institutions.
What is a GLBA risk assessment?
Categorizing controls and developing definitions for control adequacy and residual risk and applying them to each technology. Creating various reports showing vulnerabilities, controls, and a risk rating for each technology, as well as which vulnerabilities have insufficient controls, among others.
What has been the likely effect of the Gramm Leach Bliley Act on financial consolidation?
What has been the likely effect of the Gramm-Leach-Bliley Act on financial consolidation? This legislation further stimulated financial consolidation of the banking industry. Thus, more financial mergers are likely to occur, which will increase both the size and complexity of financial institutions in the future.
Which industry is most impacted by the Gramm Leach Bliley Act?
financial services industry
We find that the law has a differential impact across the financial services industry. All three industries have gained due to this law with commercial banks benefiting most, followed by the insurance industry.
What governmental agency monitors issues related to the SOX rules?
What governmental agency monitors issues related to the SOX rules? Enforcement of SOX is done through the Securities and Exchange Commission (SEC).
The Gramm-Leach-Bliley Act requires financial institutions – companies that offer consumers financial products or services like loans, financial or investment advice, or insurance – to explain their information-sharing practices to their customers and to safeguard sensitive data.
What are the penalties for not complying with the GLBA?
Gramm-Leach-Bliley Act applies to all penalties for noncompliance, including fines and imprisonment. If a financial institution violates GLBA: The institution will be subject to a civil penalty of not more than $100,000 for each violation
What was the original purpose of the GLBA?
Although better known for its privacy stipulations, the Gramm-Leach-Bliley Act (GLBA), also called the Financial Modernization Act of 1999, is a US federal law whose original purpose was to allow different types of financial institutions such as banks, insurance companies and securities firms to merge.
Who are past customers in terms of GLBA compliance?
Past customers, individuals who, for example, have used a financial institution’s services, but have ended their relationship with it, are still considered customers in terms of GLBA compliance.