Gramm-Leach-Bliley Act (GLBA)

GLBA applies to a broad range of financial institutions such as, but not limited to, banks, securities firms, insurance companies, and accounting firms. Section 501(b) of GLBA addresses the information security requirements and states that the regulatory agencies and authorities that govern financial institutions will establish administrative, technical, and physical safeguards to insure security, protect against threats or hazards and protect against unauthorized access of critical information.

If a financial institution is found to be not in compliance with GLBA, it can result in severe penalties in the form of fines from the Federal Trade Commission (FTC) or Office of the Comptroller of Currency (OCC) and possibly class-action lawsuits from customers. Specifically, non-compliance civil penalties can be as high as $100,000 per violation. The financial organization’s senior leadership can be subject to, and personally liable for, a civil penalty of up to $10,000 and/or imprisonment for up to five years.

Sera-Brynn can help you mitigate risk and ensure your financial institution is in full compliance with GLBA.