Which term regulates privacy and security of personal information?

Study for the Certified Bank Secrecy Act Professional Test. Use flashcards and multiple-choice questions with hints and explanations. Get exam ready!

Regulating privacy and security of customers’ personal information in the financial services industry is handled by the Gramm-Leach-Bliley Act. This law requires financial institutions to safeguard nonpublic personal information through a formal information security program, and to provide customers with notices that explain what data is collected, how it is shared, and with whom. It also gives consumers the right to opt out of certain sharing with non-affiliated third parties. Because GLBA directly addresses both how data is protected and how it is disclosed, it’s the regulation that specifically covers privacy and security of personal information. The other terms don’t serve this privacy-focused regulatory role: BSA/AML compliance centers on detecting and reporting illicit activity, not standard privacy protections; Secure Sharing Site isn’t a regulatory framework; Compliance Demonstration isn’t a privacy regulation.