OTS Director Ellen Seidman announced the new policy in remarks at the annual convention of America s Community Bankers in Chicago.
New technology increases the potential for misuse or alteration of customer information.
Each institution should establish adequate controls to ensure that customer information is properly protected, confidential and used as agreed with the customer. We are simply urging the institutions we regulate to apply that control to all information sharing situations. This policy statement and applicable laws and regulations will be considered by OTS examiners as they evaluate the adequacy of an institution s controls. Safeguarding customer information is an evolving area, she said, and OTS will continue to monitor and update its policies as needed. The guidance being issued today is by no means the final say on protecting customer privacy, but it is guidance that is timely and necessary.