How Bloombase helps to achieve Gramm-Leach-Bliley Act (GLBA)?

The United States of America Financial Modernization Act of 1999, also known as the “Gramm-Leach-Bliley Act” or GLB Act (GLBA), includes provisions to protect consumers’ personal financial information held by financial institutions. There are three principal parts to the privacy requirements: the Financial Privacy Rule, Safeguards Rule and pretexting provisions.

The GLB Act gives authority to eight federal agencies and the states to administer and enforce the Financial Privacy Rule and the Safeguards Rule. These two regulations apply to “financial institutions,” which include not only banks, securities firms, and insurance companies, but also companies providing many other types of financial products and services to consumers. Among these services are lending, brokering or servicing any type of consumer loan, transferring or safeguarding money, preparing individual tax returns, providing financial advice or credit counseling, providing residential real estate settlement services, collecting consumer debts and an array of other activities. Such non-traditional “financial institutions” are regulated by the FTC.

The Financial Privacy Rule governs the collection and disclosure of customers’ personal financial information by financial institutions. It also applies to companies, whether or not they are financial institutions, who receive such information.

The Safeguards Rule requires all financial institutions to implement and maintain safeguards to protect customer information. The Safeguards Rule applies not only to financial institutions that collect information from their own customers, but also to financial institutions – such as credit reporting agencies – that receive customer information from other financial institutions.

Bloombase created Bloombase security platform to address compliance requirements suggested by GLBA to safeguard corporations and agencies from unwanted private data disclosure. Bloombase security appliances protect encryption and digital signing keys inside hardware security module (HSM) from disclosure and duplication. Bloombase appliances encrypt data with NIST certified AES, 3DES and DES cryptographic algorithms and create digital signatures to assure data integrity by international standards including Public Key Infrastructure (PKI), X.509 digital certificates and W3C XML digital signature.