SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Depository Institution Customers 
Financial Privacy Enhancement Act of 1998''.

SEC. 2. CONFIDENTIAL FINANCIAL INFORMATION OF CUSTOMERS OF DEPOSITORY 
              INSTITUTIONS.

    (a) Banks and Savings Associations.--Section 18 of the Federal 
Deposit Insurance Act (12 U.S.C. 1828) is amended by adding at the end 
the following new subsection:
    ``(t) Privacy of Financial Information.--Notwithstanding any other 
provision of law, the Federal banking agencies shall each prescribe 
regulations to require each insured depository institution--
            ``(1) to protect the confidentiality of financial 
        information of, and relating to, the customers of the 
        institution;
            ``(2) to inform the customers of the institution whenever--
                    ``(A) financial information is being collected that 
                pertains to such customers; or
                    ``(B) a depository institution intends (with the 
                approval of the customer pursuant to paragraph (3)(B)) 
                to offer financial information pertaining to such 
                customer to any other person, including an affiliate or 
                agent of such institution; and
            ``(3) to refrain, and to take measures reasonably designed 
        to prevent their agents, from using, disclosing, or permitting 
        access to individually identifiable financial information 
        pertaining to any customer except--
                    ``(A) for the provision of the financial services 
                from which such information is derived, or services 
                necessary to, or used in, the provision of such 
                services;
                    ``(B) upon the affirmative written request, or with 
                the affirmative written consent, of the customer to 
                whom the information pertains; or
                    ``(C) upon request of the appropriate Federal 
                banking agency or as otherwise required by law.''.
    (b) Credit Unions.--Section 206 of the Federal Credit Union Act (12 
U.S.C. 1786) is amended by adding at the end the following new 
subsection:
    ``(w) Privacy of Financial Information.--Notwithstanding any other 
provision of law, the Board shall prescribe regulations to require each 
insured credit union--
            ``(1) to protect the confidentiality of financial 
        information of, and relating to, the members of the credit 
        union;
            ``(2) to inform the members of the credit union whenever--
                    ``(A) financial information is being collected that 
                pertains to such members; or
                    ``(B) a credit union intends (with the approval of 
                the member pursuant to paragraph (3)(B)) to offer 
                financial information pertaining to such member to any 
                other person, including an agent or affiliate of such 
                credit union; and
            ``(3) to refrain, and to take measures reasonably designed 
        to prevent their agents, from using, disclosing, or permitting 
        access to individually identifiable financial information 
        pertaining to any member except--
                    ``(A) for the provision of the financial services 
                from which such information is derived, or services 
                necessary to, or used in, the provision of such 
                services;
                    ``(B) upon the affirmative written request, or with 
                the affirmative written consent, of the member to whom 
                the information pertains; or
                    ``(C) upon request of the Board or as otherwise 
                required by law.''.

SEC. 3. CONFIDENTIAL FINANCIAL INFORMATION OF CUSTOMERS OF DEPOSITORY 
              INSTITUTION HOLDING COMPANIES.

    (a) Bank Holding Company.--Section 4 of the Bank Holding Company 
Act of 1956 (12 U.S.C. 1843) is amended by adding at the end the 
following new subsection:
    ``(k) Privacy of Financial Information.--Notwithstanding any other 
provision of law, the Board shall prescribe regulations to require any 
bank holding company and any affiliate of a bank holding company (other 
than a depository institution subsidiary of such company which is 
subject to section 18(t) of the Federal Deposit Insurance Act)--
            ``(1) to protect the confidentiality of financial 
        information of, and relating to, the customers of the bank 
        holding company or affiliate;
            ``(2) to inform a customer of the company or affiliate 
        whenever--
                    ``(A) financial information is being collected that 
                pertains to such customer; or
                    ``(B) the company or affiliate intends (with the 
                approval of the customer pursuant to paragraph (3)(B)) 
                to offer financial information pertaining to such 
                customer to any other person, including another 
                affiliate or an agent of such company or affiliate; and
            ``(3) to refrain, and to take measures reasonably designed 
        to prevent their agents, from using, disclosing, or permitting 
        access to individually identifiable financial information 
        pertaining to any such customer except--
                    ``(A) for the provision of the financial services 
                from which such information is derived, or services 
                necessary to, or used in, the provision of such 
                services;
                    ``(B) upon the affirmative written request, or with 
                the affirmative written consent, of the customer to 
                whom the information pertains; or
                    ``(C) upon request of the Board or as otherwise 
                required by law.''.
    (b) Savings and Loan Holding Companies.--Section 10 of the Home 
Owners' Loan Act (12 U.S.C. 1467a) is amended by adding at the end the 
following new subsection:
    ``(u) Privacy of Financial Information.--Notwithstanding any other 
provision of law, the Director shall prescribe regulations to require 
any savings and loan holding company and any affiliate of a savings and 
loan holding company (other than a depository institution subsidiary of 
such company which is subject to section 18(t) of the Federal Deposit 
Insurance Act)--
            ``(1) to protect the confidentiality of financial 
        information of, and relating to, the customers of the savings 
        and loan holding company or affiliate;
            ``(2) to inform a customer of the company or affiliate 
        whenever--
                    ``(A) financial information is being collected that 
                pertains to such customer; or
                    ``(B) the company or affiliate intends (with the 
                approval of the customer pursuant to paragraph (3)(B)) 
                to offer financial information pertaining to such 
                customer to any other person, including another 
                affiliate or an agent of such company or affiliate; and
            ``(3) to refrain, and to take measures reasonably designed 
        to prevent their agents, from using, disclosing, or permitting 
        access to individually identifiable financial information 
        pertaining to any such customer except--
                    ``(A) for the provision of the financial services 
                from which such information is derived, or services 
                necessary to, or used in, the provision of such 
                services;
                    ``(B) upon the affirmative written request, or with 
                the affirmative written consent, of the customer to 
                whom the information pertains; or
                    ``(C) upon request of the Director or as otherwise 
                required by law.''.
Depository Institution Customers Financial Privacy Enhancement Act of 1998 - Amends the following Acts to prescribe guidelines under which the Federal banking agencies shall prescribe regulations requiring financial institutions to protect the confidentiality of financial information relating to their customers:  (1) the Federal Deposit Insurance Act; (2) the Federal Credit Union Act; (3) the Bank Holding Company Act of 1956; and (4) the Home Owners' Loan Act.
Depository Institution Customers Financial Privacy Enhancement Act of 1998