CCPA Guide: What Financial Institutions Need to Know about the California Consumer Privacy Act
At the time of writing, business entities across all industries are hard at work gearing up to get in compliance with the California Consumer Privacy Act of 2018 (CCPA) by the law’s January 1, 2020 effective date. One of the more complex issues concerning the CCPA pertains to the extent to which financial institutions governed by the Gramm-Leach-Bliley Act (GLBA) must adhere to the mandates of the CCPA. While California’s new privacy law does afford a carve-out for financial institutions, it does not provide a comprehensive, across-the-board “get out of jail free” card for the financial services industry. Consequently, financial institutions will need to take actionable steps to prepare for compliance with the CCPA by the time the new privacy law goes into effect at the beginning of this year.
The CCPA was amended in September 2018, and now provides the following carve-out for financial institutions: “This title shall not apply to personal information collected, processed, sold, or disclosed pursuant to the federal Gramm-Leach-Bliley Act (Public Law 106-102), and implementing regulations, or the California Financial Information Privacy Act . . . . This subdivision does not apply to Section 1798.150.” Pursuant to this language, the financial institution carve-out applies to personal information that is collected “pursuant to” the GLBA or the California Financial Information Privacy Act (CFIPA). Thus, financial entities will be subject to the requirements of the CCPA where they engage in activities that fall outside the scope of the GLBA.
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“CCPA Guide: What Financial Institutions Need to Know about the California Consumer Privacy Act,” by David J. Oberly and Tanweer Ansari* was published in the January‒March 2020 issue of CeFPro Magazine, a publication of the Center for Financial Professionals.
* Tanweer Ansari serves as the SVP Chief Compliance/BSA/CRA Officer of The First National Bank of Long Island.