FDIC Creates Privacy Rule HandbookMortgagePress.comprivacy, Federal Deposit Insurance Corporation, FDIC, Gramm-Leach-Bliley Act of 1999
The Federal Deposit Insurance Corporation has released a Privacy
Rule Handbook to help banks comply with new consumer privacy
protection requirements that will become effective Sunday, Jul.
"The Privacy Rule Handbook will help banks, particularly smaller
banks, meet their obligations under the privacy rule, and carry on
the long tradition of serving the public well," says FDIC Chair
The new protections for consumers were established by the
Gramm-Leach-Bliley Act of 1999. The FDIC and other federal
financial institution supervisory agencies issued a final privacy
regulation in 2000. Although the final regulation was effective as
of Nov. 13, 2000, compliance will become mandatory as of Jul. 1.
The regulations require financial institutions to issue privacy
notices and provide consumers with an opportunity to stop or
"opt-out" of sharing personal information.
The Handbook explains the requirements of the privacy
regulation, provides suggestions for reaching the Jul. 1 deadline
for issuing privacy notices and suggests activities to monitor and
maintain compliance. In addition, the Handbook explains key
terminology and lists helpful resources.
The Privacy Rule Handbook will be mailed to all FDIC-supervised
institutions. The Handbook is also available as an attachment to
Financial Institution Letter-3-2001 on the FDIC's Web site at