ABA Banking Journal - March/April 2016 - (Page 48)

> ABA COMPLIANCE CENTER INBOX FAST Act and Privacy Notice Changes Q: 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). Q: 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. Q: 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. Q: 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. 48 ABA BANKING JOURNAL | MARCH/APRIL 2016 Q: Are there any customer notification requirements, such as the one mandated by the Consumer Financial Protection Bureau's alternative delivery system? No. Q: 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 that notice. 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. Q: 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

CHAIRMAN’S VIEW
UPFRONT
PICTURE THIS
LEGAL BRIEFS
LEARNING THROUGH LITERATURE
PUMPING IT UP
CRE AT A CROSSROADS
LAYING A FOUNDATION FOR INNOVATION
A PASSION FOR ADVOCACY
MARKETING
CEO ROUNDTABLE
WHY BANK CONSOLIDATION IN THE U.S. WILL LIFT OFF IN 2016
ABA COMPLIANCE CENTER INBOX
PAYMENTS
CYBERSECURITY
FRAUD
BOOKS FOR BANKERS
BOARD MATTERS
FROM THE STATES
CORPORATE SOCIAL RESPONSIBILITY
INDEX OF ADVERTISERS

ABA Banking Journal - March/April 2016