Seven federal regulators issued guidance on Tuesday to clarify that privacy provisions of the Gramm-Leach-Bliley Act do still allow for financial institutions to report suspected elder financial abuse.
The Gramm-Leach-Bliley Act generally requires that a financial institution notify consumers and give them an opportunity to opt out before nonpublic personal information is provided to a third party. The new guidance clarifies that it is generally acceptable under the law for financial institutions to report suspected elder financial abuse to local, state or federal agencies. Specific privacy provisions of the Act and its implementing regulations allow the sharing of this type of information without complying with standard notice and opt-out requirements.
