Financial Institution Letters
Model Privacy Notice Form Compliance Guide |
FIL-60-2010 September 27, 2010 |
Printable Format:
FIL-60-2010 - PDF (PDF Help)
Summary:
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On December 1, 2009, the FDIC issued amendments to Part 332 of the FDIC's Rules and Regulations which implement the privacy provisions of the Gramm-Leach-Bliley Act (GLBA) and adopted the model privacy notice form. Part 332 requires state nonmember banks to notify consumers of their information-sharing practices and inform consumers of the right to opt out of certain sharing practices. The FDIC now is issuing a compliance guide for state nonmember banks wishing to use the model form to comply with these requirements. |
Highlights:
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The model privacy notice form was announced in Financial Institution Letter 65-2009: http://www.fdic.gov/news/news/financial/2009/fil09065.html.
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Use of the model privacy notice form is voluntary. However, a state nonmember bank that chooses to provide this model form to consumers in a manner consistent with the form's instructions will be deemed to be in compliance with the disclosure requirements for privacy notices under the GLBA and Part 332.
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Currently, the FDIC's Rules and Regulations contain language ("sample clauses") that state nonmember banks may use in their privacy notices and be considered in compliance with the privacy provisions of GLBA.
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These sample clauses and the associated compliance safe harbor will be eliminated from Part 332 following a transition period. Use of the sample clauses will continue to provide a safe harbor only until December 31, 2010.
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To obtain a compliance safe harbor after the sample clauses are removed, state nonmember banks should use the new model privacy notice form which has provided a compliance safe harbor since its effective date of December 31, 2009.
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An online model privacy notice form builder is available at http://www.federalreserve.gov/bankinforeg/privacy_notice_instructions.pdf. State nonmember banks may download and complete this form builder to create a customized privacy notice. The form builder now includes versions enabling customers to opt-out via phone, on-line, or mail. The attached guide provides a brief description of how to use the model privacy notice form.
Distribution:
FDIC-Supervised Institutions
Suggested Routing:
Compliance Officer
Related Topics:
Privacy of Consumer Financial Information
12 C.F.R. Part 332
Attachment:
Compliance Guide - PDF (PDF Help)
Contact:
Samuel Frumkin, Senior Policy Analyst, at (202) 898-6602 or sfrumkin@fdic.gov; or Kimberly Stock, Counsel, at (202) 898-3815 or kstock@fdic.gov.
Note:
FDIC financial institution letters (FILs) may be accessed from the FDIC's Web site at http://www.fdic.gov/news/news/financial/2010/index.html
To receive FILs electronically, visit http://www.fdic.gov/about/subscriptions/fil.html.
Paper copies of FDIC financial institution letters may be obtained via the FDIC's Public Information Center (1-877-275-3342 or 703-562-2200).
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