What is the Gramm-Leach-Bliley Act?
The Gramm-Leach-Bliley Act (1999) is a federal law that applies to financial institutions licensed in North Dakota. It requires financial institutions to provide clear and conspicuous disclosures about their information-sharing practices to their customers. Furthermore, the law requires financial institutions to have a comprehensive information security plan in place to protect the privacy of customer data. The Act applies to banks, securities firms, insurance companies, and other financial service providers. It requires these institutions to provide customers with notices explaining the institutions’ information-sharing practices. If a financial institution works with a third-party, it has to provide customers with specific notice of this arrangement. Customers must opt-in or opt-out of sharing their information in the notices. The law also requires financial institutions to have a comprehensive information security plan in place. This plan must protect customer data from unauthorized access. Financial institutions must have procedures in place to detect when customer information is compromised and must take appropriate steps to safeguard customer data. The purpose of the Act is to protect the privacy of customer data and to ensure that financial services institutions are transparent with their customers about their information-sharing practices. The Gramm-Leach-Bliley Act is a major law in the banking industry and affects financial institutions across North Dakota.
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