ABA Banking Journal - March/April 2016 - (Page 48)
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FAST Act and Privacy
I UNDERSTAND THAT a new law has
impacted my bank's annual notice
requirements under the privacy law.
Where can I find that information?
On Dec. 4, President Obama signed the Fixing
America's Surface Transportation Act. Included in the
legislation-now Public Law No: 114-94-is Title 75,
which creates a new exception to the annual privacy
notice requirement under the Gramm-Leach-Bliley
Act of 1999 (GLBA).
To what part of the GLBA does
the FAST Act apply?
It applies to the requirement to send annual privacy
notices to your customers. It does not affect the initial
notice requirements under the GLBA or the regulation.
When can I stop sending my
annual privacy notices?
The FAST Act was signed on Dec. 4, 2015. This
provision was effective immediately upon signing.
Under what circumstances can I forego
sending my annual privacy notice?
In order to take advantage of the change, your
bank must meet two conditions. First, your financial
institution must not have changed its policies and
practices with respect to the disclosure of nonpublic
personal information since its most recent privacy
notice to customers. Second, your financial institution
must only share information under one of the existing
statutory or regulatory exceptions listed in §§1016.1215 of Regulation P.
ABA BANKING JOURNAL | MARCH/APRIL 2016
Are there any customer
notification requirements, such
as the one mandated by the
Consumer Financial Protection
Bureau's alternative delivery system?
What is the difference between the
CFPB's 2014 regulatory changes
regarding the alternative delivery
system and the FAST Act provisions?
Last year, the CFPB issued an amendment to the
regulations that allowed a financial institution to
post its privacy disclosure notice on its website
once a series of conditions had been met.
The regulatory change did not eliminate the
requirement to provide an annual notice. Instead,
the Bureau's rule was an alternative way to deliver
The FAST Act, which is a simpler approach
that ABA has long supported, eliminates the
requirement to send annual privacy notices as
long as two simple conditions are met. Under the
FAST Act, if you haven't changed your information
sharing and you only share under one of the
existing exceptions (see page 50), no notice at all
must be delivered. Essentially, the FAST Act has
made the Bureau's alternative delivery mechanism
no longer necessary.
Regulation P still states that the
annual notice is required. Will I
be cited by my regulator if I stop
sending my annual notices?
Current regulations have not yet been amended
and no guidance has been issued by the regulatory
agencies. If a financial institution satisfies the two
conditions in the FAST Act, it can elect not to send
the annual notice. Technically, this does not comply
Table of Contents for the Digital Edition of ABA Banking Journal - March/April 2016
LEARNING THROUGH LITERATURE
PUMPING IT UP
CRE AT A CROSSROADS
LAYING A FOUNDATION FOR INNOVATION
A PASSION FOR ADVOCACY
WHY BANK CONSOLIDATION IN THE U.S. WILL LIFT OFF IN 2016
ABA COMPLIANCE CENTER INBOX
BOOKS FOR BANKERS
FROM THE STATES
CORPORATE SOCIAL RESPONSIBILITY
INDEX OF ADVERTISERS
ABA Banking Journal - March/April 2016
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