Compliance glossary
Definition

Gramm-Leach-Bliley Act (GLBA)

The federal law that requires financial institutions, including CPA firms, to protect consumers' nonpublic personal information.

What it means.

The Gramm-Leach-Bliley Act (GLBA), enacted in 1999, governs how financial institutions handle nonpublic personal information about consumers. Title V splits into the Privacy Rule (notice and consent for sharing data with non-affiliates) and the Safeguards Rule (information security program requirements). The FTC enforces both for non-bank financial institutions, including CPA firms, tax preparers, bookkeeping firms, and enrolled agents. The 2023 Safeguards Rule amendments operationalized GLBA into concrete, enforceable security requirements.

Why it matters for CPA firms.

GLBA is the statutory backbone behind every FTC Safeguards Rule citation. When a firm is investigated for a breach, the FTC frames the inquiry as a GLBA enforcement matter. Cyber insurance application questions that ask about GLBA compliance are asking whether you have a working information security program and a WISP. Understanding GLBA explains why all the rules exist.

Relevant regulations.

  • Gramm-Leach-Bliley Act (15 USC 6801-6809)
  • 16 CFR Part 313 (Privacy Rule)
  • 16 CFR Part 314 (Safeguards Rule)

Related terms.

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