What does the Gramm-Leach-Bliley Act NOT prevent financial institutions from doing?

What does the Gramm-Leach-Bliley Act NOT prevent financial institutions from doing?

• A. Informing customers of privacy policies
• B. Blocking sharing of certain private information
• C. Notifying customers of private information it intends to share
• D. Sharing information regarding terrorist acts involving money laundering

Answer: (D)

The Gramm-Leach-Bliley Act (GLBA) primarily focuses on protecting consumers' personal financial information held by financial institutions and requires these entities to disclose their privacy practices to their customers. Among its provisions, the GLBA mandates that institutions must inform customers about their privacy policies, allow them to opt out of sharing certain private information, and notify them prior to sharing personal information with third parties. However, the act does not impede financial institutions from sharing information relevant to law enforcement and public safety matters, such as information related to terrorist activities and money laundering concerns. This exception is based on the need for collaboration between financial institutions and government agencies in order to combat illegal activities effectively. Therefore, sharing information regarding terrorist acts that involve money laundering falls outside the restrictions imposed by the GLBA, allowing financial institutions to cooperate with law enforcement when necessary.

The Gramm-Leach-Bliley Act (GLBA) primarily focuses on protecting consumers' personal financial information held by financial institutions and requires these entities to disclose their privacy practices to their customers. Among its provisions, the GLBA mandates that institutions must inform customers about their privacy policies, allow them to opt out of sharing certain private information, and notify them prior to sharing personal information with third parties.

However, the act does not impede financial institutions from sharing information relevant to law enforcement and public safety matters, such as information related to terrorist activities and money laundering concerns. This exception is based on the need for collaboration between financial institutions and government agencies in order to combat illegal activities effectively. Therefore, sharing information regarding terrorist acts that involve money laundering falls outside the restrictions imposed by the GLBA, allowing financial institutions to cooperate with law enforcement when necessary.