Gramm/Leach/Bliley Act Overview
The purpose of GLBA is to make certain that customer and consumer records and personal information are protected from unauthorized use and scrutiny.
Information that is protected includes anything provide by a consumer to obtain financial services and products, access codes, payment histories and account codes, as well as any other personal information.
Institutions affected by these regulations include any institution that is involved in financial activities. Financial services companies such as banks, credit unions, brokers, real estate, leasing firms, travel agencies and retailers issuing their own credit cards are all affected.
These institutions need to develop a written security program for this information. Furthermore; they must also disclose to customers, on an annual basis, detailed policy explaining how this information will be used and disposed of.
Full compliance has been mandatory since July 1, 2001. Violations can result in fines up to $1,000,000 per individual and up to 1% of an institution's total assets. Bank officers and directors can be permanently removed from the industry.
Organizations implementing these standards must scrutinize current practices involving crucial information. Risks must be evaluated and identified and a plan must be put into place for securing these documents until proper disposal is undertaken.
Burgmeier Shredding can reduce these concerns by guaranteeing proper destruction and documenting it with a certification of destruction. This will ensure clients the peace of mind that sensitive information has been secured and disposed of in proper fashion.