Glba Ffiec Financial Privacy

GLBA / FFIEC Financial Privacy

Overview

This skill operationalizes Gramm-Leach-Bliley Act (GLBA) requirements for financial institutions and non-bank financial companies subject to FTC or federal functional regulator oversight, aligned to FFIEC IT Examination Handbook guidance.

| GLBA component | Regulation | Core obligation | | --- | --- | --- | | Financial Privacy Rule | 16 CFR Part 313 (Regulation P) | Privacy notices, opt-out for information sharing with nonaffiliated third parties | | Safeguards Rule | 16 CFR Part 314 | Written information security program (WISP) protecting customer information | | Pretexting provisions | 15 U.S.C. §6821–6827 | Limit obtaining customer info under false pretenses (supporting controls) |

Safeguards Rule (amended 2021, effective 2023 phases) requires:

• Qualified individual overseeing the information security program
• Risk assessment identifying threats to customer information
• Safeguards matched to risk: access controls, encryption, MFA, secure development, logging, disposal
• Service provider oversight via contract and periodic assessment
• Program evaluation at least annually
• Incident response plan with notification where applicable

Customer information includes personally identifiable financial information provided by a consumer or obtained in connection with providing a financial product or service—not limited to deposit accounts (includes mortgage, lending, financial advisory, certain fintech).

FFIEC IT Examination Handbook modules (relevant cross-refs):

| Booklet | Application | | --- | --- | | Information Security | Governance, access, cryptography, logging | | Management | Board oversight, risk appetite, audit | | Outsourcing Technology Services | Vendor/cloud due diligence | | Business Continuity Management | Resilience for customer data systems | | Audit | Independent review of security program |

Cross-skill mapping: vendor oversight → vendor-third-party-risk; access controls → access-control-identity-audit; California resident overlap → ccpa-cpra-privacy-rights.

Reference documents: FTC Safeguards Rule, FFIEC Infobase, 16 CFR Part 313 and Part 314.

When to Use

Use this skill when:

• Auditing GLBA Safeguards Rule compliance for banks, credit unions, lenders, or fintech
• Preparing for FFIEC IT examination (state regulator or federal functional regulator)
• Developing or reviewing Written Information Security Program (WISP)
• Assessing privacy notices (initial, annual, revised) and opt-out processes under Regulation P
• Evaluating service provider contracts for customer information handling
• Harmonizing GLBA with state privacy laws (CPRA overlap for California customers)
• Reviewing core banking, loan origination, or mobile banking security controls

Do not use this skill when:

• CPRA-only consumer rights program without GLBA financial institution scope (use ccpa-cpra-privacy-rights)
• SOX 404 ITGC for public company financial reporting (use sox-itgc-audit)
• HIPAA-covered health plan PHI (use hipaa-technical-safeguards)
• PCI DSS cardholder data environment (use pci-dss-network-segmentation)

Core Process

Execute steps in order.

Step 1: Entity classification and regulatory mapping

1. Determine GLBA applicability:

• Financial institution under GLBA §6801(b) or non-bank financial company under FTC jurisdiction
• Identify functional regulator: OCC, FDIC, FRB, NCUA, SEC, state, or FTC

1. Map customer information data flows:

• Core systems, CRM, mobile apps, call center recordings, cloud analytics
• Nonpublic personal information (NPI) vs publicly available information

1. Identify affiliates and nonaffiliated third parties for Privacy Rule sharing analysis.
2. Artifact: glba-data-inventory-{id}.json.

Step 2: Risk assessment (Safeguards Rule §314.4(b))

1. Conduct or review written risk assessment identifying:

• Internal and external threats to customer information security, confidentiality, integrity
• Likelihood and potential damage; criteria for evaluating risks

1. Update risk assessment upon material operational changes (new cloud core, API banking, AI chatbots).
2. Map risks to safeguard categories in §314.4(c): access controls, data inventory, encryption, secure development, authentication, monitoring, disposal.
3. Cross-ref nist-csf-2-assessment for structured risk taxonomy if institution uses CSF internally.

Step 3: Written Information Security Program (WISP)

1. Verify WISP includes required elements per 16 CFR §314.4:

• Designated qualified individual (may be vendor CISO with board reporting line)
• Risk assessment, safeguards, service provider oversight, evaluation, incident response

1. Board or senior management approval and annual review evidence.
2. Map WISP sections to FFIEC Information Security booklet expectations.
3. Artifact: wisp-gap-analysis-{id}.md.

Step 4: Access controls and authentication (§314.4(c)(1), (c)(8))

1. Execute access-control-identity-audit with GLBA mapping:

• Role-based access to customer information systems
• MFA for access to customer information (Safeguards Rule explicit requirement)
• Privileged access management for administrators and vendor support accounts

1. Verify physical access controls for facilities housing customer information (FFIEC PE expectations).
2. Test session termination and encryption for data in transit (§314.4(c)(3)).
3. Use Postgres MCP read-only for customer DB role assignments where permitted in audit scope.

Step 5: Data inventory, encryption, and disposal (§314.4(c)(2)–(c)(4), (c)(7))

1. Maintain inventory of customer information systems, data classification, and retention.
2. Verify encryption at rest for customer information on portable media and in storage (risk-based where not feasible).
3. Verify secure disposal procedures for hardware, paper, and media sanitization.
4. Cross-ref pci-dss-encryption-key-management for key management patterns where encryption overlaps payment data.

Step 6: Monitoring and logging (§314.4(c)(8))

1. Execute audit-logging-integrity:

• Logging of access to customer information systems
• Log review, retention, and protection from tampering

1. FFIEC expects security event monitoring and anomaly detection for internet-facing banking.
2. Use Terraform MCP for cloud logging infrastructure evidence (CloudTrail, Azure Activity Log).

Step 7: Service provider oversight (§314.4(f))

1. Execute vendor-third-party-risk for all service providers receiving customer information:

• Due diligence at selection; contract requiring security controls
• Periodic assessment of service provider practices

1. Core processors, cloud hosts, SaaS CRM, LLM/chatbot vendors handling customer data in scope.
2. Verify contracts address subcontractors, breach notification, and return/destruction of data.
3. Distinguish service provider vs joint arrangement for Privacy Rule notice requirements.

Step 8: Privacy Rule — notices and opt-out (16 CFR Part 313)

1. Review initial privacy notice at customer relationship establishment (§313.4).
2. Review annual privacy notice distribution requirements (§313.5)—delivery methods and content.
3. Verify opt-out notice and reasonable opt-out methods before sharing NPI with nonaffiliated third parties (§313.7, §313.10).
4. Map exceptions: §313.14–313.15 (service provider, joint marketing, etc.)—document reliance basis.
5. For California customers, cross-ref ccpa-cpra-privacy-rights for CPRA rights that may exceed GLBA (do not assume GLBA preempts all CPRA obligations—coordinate with counsel).

Step 9: Program evaluation, incident response, and evidence packaging

1. Verify annual program evaluation (§314.4(d)): internal audit, penetration test, or third-party review results.
2. Review incident response plan including customer notification triggers (state breach laws, regulator guidance).
3. Emit findings:

id: FIND-GLBA-001
severity: HIGH
control_id: GLBA-314.4(c)(8)
observation: "MFA not enforced for all employees accessing loan origination system with customer NPI"
recommendation: "Deploy MFA for all interactive access; document exception process with risk acceptance"
owner: ""
due_date: null
status: open

1. Package: WISP, risk assessment, privacy notices, vendor assessments, access reviews, pen test summary, board minutes.
2. Hash evidence per templates/audit-evidence-manifest.yaml.

Common Rationalizations

| Excuse the agent might generate | Required rebuttal | | --- | --- | | "We're a fintech partner bank handles compliance." | GLBA applies to entities collecting customer information—partner arrangements require contractual safeguards and often direct regulatory oversight. | | "Privacy Rule allows sharing—no opt-out needed." | Exceptions are narrow—sharing outside §313.14/313.15 requires opt-out notice and reasonable opt-out methods. | | "MFA is recommended, not required." | 2023 Safeguards Rule explicitly requires MFA for access to customer information—absence is a regulatory gap, not best practice. | | "Vendor SOC 2 replaces GLBA oversight." | §314.4(f) requires periodic assessment—SOC 2 review is evidence, not substitute for ongoing oversight program. | | "CPRA preempts GLBA for California." | GLBA and CPRA interaction is nuanced—financial institutions may have GLBA-aligned exemptions for some CPRA provisions; assess per CPPA guidance with counsel. | | "Annual privacy notice is obsolete—skip it." | Verify current Regulation P delivery rules and institution regulator expectations—many still require annual notice or alternative model compliance. |

Red Flags

• No designated qualified individual or unclear reporting line to board/senior management
• Risk assessment missing or not updated after cloud core conversion
• Customer information accessible without MFA (employees or vendors)
• Service provider contracts lack security and breach notification clauses
• No inventory of systems storing customer NPI
• Privacy notices missing required Reg P content or opt-out methods
• Sharing NPI with marketing partners without opt-out compliance
• Logs of customer data access not reviewed or easily tampered with
• WISP not approved by senior management or board
• AI/chatbot vendor processes customer NPI without vendor oversight documentation

Verification

• [ ] GLBA applicability and functional regulator identified
• [ ] Customer information data inventory and NPI flows documented
• [ ] Written risk assessment current and mapped to §314.4(c) safeguards
• [ ] WISP complete with qualified individual, board approval, annual review
• [ ] Access controls and MFA verified via access-control-identity-audit
• [ ] Encryption, disposal, and data inventory controls assessed
• [ ] Logging and monitoring verified via audit-logging-integrity
• [ ] Service provider oversight completed via vendor-third-party-risk
• [ ] Privacy notices (initial, annual) and opt-out processes reviewed per Part 313
• [ ] CPRA overlap assessed for California customers via ccpa-cpra-privacy-rights
• [ ] Annual program evaluation and incident response plan documented
• [ ] Evidence manifest complete with SHA-256 hashes and engagement ID

Source & license

This open-source skill is cataloged on AgentStack and links to its original source — we do not rehost the code.

• Author: vaquarkhan
• Source: vaquarkhan/compliance-agent-skills
• License: MIT
• Homepage: https://github.com/vaquarkhan/compliance-agent-skills#readme

Install and usage instructions live in the source repository linked above.