I

106TH CONGRESS

1ST SESSION H. R. 1339

To require insured depository institutions, depository institution holding companies, and insured credit unions to protect the confidentiality of financial information obtained concerning their customers, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

MARCH 25, 1999

Mr. MARKEY introduced the following bill; which was referred to the

Committee on Banking and Financial Services

A BILL

To require insured depository institutions, depository institution holding companies, and insured credit unions to

protect the confidentiality of financial information obtained concerning their customers, and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Depository Institution

5 Customers Financial Privacy Enhancement Act of 1999’’.
2

•HR 1339 IH

1 SEC. 2. CONFIDENTIAL FINANCIAL INFORMATION OF CUS2 TOMERS OF DEPOSITORY INSTITUTIONS.

3 (a) BANKS AND SAVINGS ASSOCIATIONS.—Section 18

4 of the Federal Deposit Insurance Act (12 U.S.C. 1828)

5 is amended by adding at the end the following new sub6 section:

7 ‘‘(t) PRIVACY OF FINANCIAL INFORMATION.—Not8 withstanding any other provision of law, the Federal bank9 ing agencies shall each prescribe regulations to require

10 each insured depository institution—

11 ‘‘(1) to protect the confidentiality of financial

12 information of, and relating to, the customers of the

13 institution;

14 ‘‘(2) to inform the customers of the institution

15 whenever—

16 ‘‘(A) financial information is being col17 lected that pertains to such customers; or

18 ‘‘(B) a depository institution intends (with

19 the approval of the customer pursuant to para20 graph (3)(B)) to offer financial information

21 pertaining to such customer to any other per22 son, including an affiliate or agent of such in23 stitution; and

24 ‘‘(3) to refrain, and to take measures reason25 ably designed to prevent their agents, from using,

26 disclosing, or permitting access to individually iden-
3

•HR 1339 IH

1 tifiable financial information pertaining to any cus2 tomer except—

3 ‘‘(A) for the provision of the financial serv4 ices from which such information is derived, or

5 services necessary to, or used in, the provision

6 of such services;

7 ‘‘(B) upon the affirmative written request,

8 or with the affirmative written consent, of the

9 customer to whom the information pertains; or

10 ‘‘(C) upon request of the appropriate Fed11 eral banking agency or as otherwise required by

12 law.’’.

13 (b) CREDIT UNIONS.—Section 206 of the Federal

14 Credit Union Act (12 U.S.C. 1786) is amended by adding

15 at the end the following new subsection:

16 ‘‘(w) PRIVACY OF FINANCIAL INFORMATION.—Not17 withstanding any other provision of law, the Board shall

18 prescribe regulations to require each insured credit

19 union—

20 ‘‘(1) to protect the confidentiality of financial

21 information of, and relating to, the members of the

22 credit union;

23 ‘‘(2) to inform the members of the credit union

24 whenever—
4

•HR 1339 IH

1 ‘‘(A) financial information is being col2 lected that pertains to such members; or

3 ‘‘(B) a credit union intends (with the ap4 proval of the member pursuant to paragraph

5 (3)(B)) to offer financial information pertaining

6 to such member to any other person, including

7 an agent or affiliate of such credit union; and

8 ‘‘(3) to refrain, and to take measures reason9 ably designed to prevent their agents, from using,

10 disclosing, or permitting access to individually iden11 tifiable financial information pertaining to any mem12 ber except—

13 ‘‘(A) for the provision of the financial serv14 ices from which such information is derived, or

15 services necessary to, or used in, the provision

16 of such services;

17 ‘‘(B) upon the affirmative written request,

18 or with the affirmative written consent, of the

19 member to whom the information pertains; or

20 ‘‘(C) upon request of the Board or as oth21 erwise required by law.’’.
5

•HR 1339 IH

1 SEC. 3. CONFIDENTIAL FINANCIAL INFORMATION OF CUS2 TOMERS OF DEPOSITORY INSTITUTION

3 HOLDING COMPANIES.

4 (a) BANK HOLDING COMPANY.—Section 4 of the

5 Bank Holding Company Act of 1956 (12 U.S.C. 1843)

6 is amended by adding at the end the following new sub7 section:

8 ‘‘(k) PRIVACY OF FINANCIAL INFORMATION.—Not9 withstanding any other provision of law, the Board shall

10 prescribe regulations to require any bank holding company

11 and any affiliate of a bank holding company (other than

12 a depository institution subsidiary of such company which

13 is subject to section 18(t) of the Federal Deposit Insur14 ance Act)—

15 ‘‘(1) to protect the confidentiality of financial

16 information of, and relating to, the customers of the

17 bank holding company or affiliate;

18 ‘‘(2) to inform a customer of the company or

19 affiliate whenever—

20 ‘‘(A) financial information is being col21 lected that pertains to such customer; or

22 ‘‘(B) the company or affiliate intends (with

23 the approval of the customer pursuant to para24 graph (3)(B)) to offer financial information

25 pertaining to such customer to any other per-
6

•HR 1339 IH

1 son, including another affiliate or an agent of

2 such company or affiliate; and

3 ‘‘(3) to refrain, and to take measures reason4 ably designed to prevent their agents, from using,

5 disclosing, or permitting access to individually iden6 tifiable financial information pertaining to any such

7 customer except—

8 ‘‘(A) for the provision of the financial serv9 ices from which such information is derived, or

10 services necessary to, or used in, the provision

11 of such services;

12 ‘‘(B) upon the affirmative written request,

13 or with the affirmative written consent, of the

14 customer to whom the information pertains; or

15 ‘‘(C) upon request of the Board or as oth16 erwise required by law.’’.

17 (b) SAVINGS AND LOAN HOLDING COMPANIES.—Sec18 tion 10 of the Home Owners’ Loan Act (12 U.S.C. 1467a)

19 is amended by adding at the end the following new sub20 section:

21 ‘‘(u) PRIVACY OF FINANCIAL INFORMATION.—Not22 withstanding any other provision of law, the Director shall

23 prescribe regulations to require any savings and loan hold24 ing company and any affiliate of a savings and loan hold25 ing company (other than a depository institution sub-
7

•HR 1339 IH

1 sidiary of such company which is subject to section 18(t)

2 of the Federal Deposit Insurance Act)—

3 ‘‘(1) to protect the confidentiality of financial

4 information of, and relating to, the customers of the

5 savings and loan holding company or affiliate;

6 ‘‘(2) to inform a customer of the company or

7 affiliate whenever—

8 ‘‘(A) financial information is being col9 lected that pertains to such customer; or

10 ‘‘(B) the company or affiliate intends (with

11 the approval of the customer pursuant to para12 graph (3)(B)) to offer financial information

13 pertaining to such customer to any other per14 son, including another affiliate or an agent of

15 such company or affiliate; and

16 ‘‘(3) to refrain, and to take measures reason17 ably designed to prevent their agents, from using,

18 disclosing, or permitting access to individually iden19 tifiable financial information pertaining to any such

20 customer except—

21 ‘‘(A) for the provision of the financial serv22 ices from which such information is derived, or

23 services necessary to, or used in, the provision

24 of such services;
8

•HR 1339 IH

1 ‘‘(B) upon the affirmative written request,

2 or with the affirmative written consent, of the

3 customer to whom the information pertains; or

4 ‘‘(C) upon request of the Director or as

5 otherwise required by law.’’.

Æ