Get Started Now
Free 30 Day Trial
24/7 Tech Support
No Credit Card Required
Give us a call at

Who is affected by the Gramm-Leach-Bliley Act’s data protection regulations? What are the penalties for violation?


Gramm-Leach-Bliley and data backup

The Gramm-Leach-Bliley Act (also formally known as the Financial Modernization Act of 1999) requires financial institutions to ensure the security and confidentiality of customers’ non-public, personal information.

Who can be affected by the Gramm-Leach-Bliley Act’s Data Protection Regulations?

Types of financial institutions required to comply with the Gramm-Leach-Bliley Act may include:

  • Commercial banks
  • Credit unions
  • Stock brokerage firms
  • Asset management firms
  • Investment advisors
  • Securities firms
  • Insurance companies
  • Finance companies
  • Building societies
  • Retailers
  • Bill/debt collectors
  • Attorneys
  • Mortgage companies
  • Any business that provides financial products or services

Penalties for Violating the GLBA

GLBA compliance is mandatory, and the penalties for violation are quite severe:

  • A financial institution can be fined up to $100,000 for each violation
  • The officers and directors of the offending institution can be fined up to $10,000 for each violation
  • Criminal penalties include imprisonment for up to 5 years, a fine, or both
  • If the GLBA is violated at the same time that another federal law is violated, or if the GLBA is violated as part of a pattern of any illegal activity involving more than $100,000 within a 12-month period, the violator’s fine will be doubled and he or she will be imprisoned for up to 10 years

Protect your data with Remote Data Backups. Click here to get started!

Questions? Give us a call at 1-866-722-2587.