The Gramm-Leach-Bliley Act, known as the GLBA, was passed in 1999 under President Clinton. The goal of the GLBA was to update and modernize the financial industry. Today, it’s primarily used to protect customer and consumer information, with steep penalties for financial institutions that violate its privacy rules. Here’s what you need to know about the GLBA and its regulations.

Many countries around the world recognized Data Protection Day in January — a day that highlights the importance of protecting individual privacy and data against misuse. The U.S. celebrated Data Privacy Day, where privacy and security have often been seen as two separate issues. This is evidenced by the way law has historically developed.

The Federal Trade Commission (FTC) put significant updates into effect on January 10th, 2022, to strengthen the Standards for Safeguarding Customer Information (Safeguards Rule) under the Gramm-Leach-Bliley Act (GLBA) to protect consumer data collected by financial institutions. The amendment applies to nonbank financial institutions and requires them to develop, implement, and maintain a comprehensive cybersecurity program in order to protect their customers’ information.