On November 12, 1999, the Gramm-Leach-Bliley Act (GLBA) was passed by Congress with an effective date of November 13, 2000, and compliance date of July 1, 2001. The Act requires any financial institution or business that engages in financial activities to provide a privacy notice to their customers by July 1, 2001, and when a relationship is established. GLBA applies to many types of business, including: Lending and extending credit; Providing financial or investment services; Insuring, guaranteeing, or indemnifying against loss; Underwriting or dealing with securities; Banking or closely-related banking services; Engaging in an activity that a bank holding company may engage in outside of the U.S.; Auto dealers that lease or finance; Appraising real estate or other personal property; Leasing real or personal property; and Mortgage lenders or brokers. The GLB Act includes the Financial Privacy Rule, the Model Form Rule, the Safeguards Rule, and provisions that prohibit pretexting. 

In October 2006, the President Bush signed a bill that exempted certified public accountants from the Gramm-Leach-Bliley Act’s requirement that CPAs send their clients an annual privacy notice.  However, CPAs are still required to follow the Safeguards Rule. Read Section 609 – Exemption From Disclosure of Privacy Policy for Accountants of the Financial Services Regulatory Relief Act of 2006.

Learn more about the Gramm-Leach-Bliley Act by visiting the sites below.