What is one of the requirements of the Gramm-Leach-Bliley Act concerning financial institutions?

One of the key requirements of the Gramm-Leach-Bliley Act is to protect customers' personal financial information. This federal law mandates that financial institutions, which include banks, insurance companies, and investment firms, must implement measures to ensure the confidentiality and security of consumers' private data.

The law requires these institutions to provide clear privacy notices to consumers, detailing how their information is collected, used, and shared. Furthermore, it obligates them to safeguard sensitive information from unauthorized access and to develop policies and procedures to maintain the security of customer data.

This focus on protecting personal financial information is essential in building trust between consumers and financial institutions, and it helps mitigate the risks associated with identity theft and data breaches. By ensuring that customers' information is kept safe, the Act not only serves to protect individual privacy but also reinforces the integrity of the financial system as a whole.