I
105TH CONGRESS
2D SESSION
H. R. 4478
To require insured depository institutions, depository institution holding com-
panies, and insured credit unions to protect the confidentiality of finan-
cial information obtained concerning their customers, and for other pur-
poses.
IN THE HOUSE OF REPRESENTATIVES
AUGUST 6, 1998
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 institu-
tion holding companies, and insured credit unions to
protect the confidentiality of financial information ob-
tained concerning their customers, and for other pur-
poses.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
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 CUS-
TOMERS 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 sub-
section:
‘‘(t) PRIVACY OF FINANCIAL INFORMATION.—Not-
withstanding any other provision of law, the Federal bank-
ing 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 col-
lected that pertains to such customers; or
‘‘(B) a depository institution intends (with
the approval of the customer pursuant to para-
graph (3)(B)) to offer financial information
pertaining to such customer to any other per-
son, including an affiliate or agent of such in-
stitution; and
‘‘(3) to refrain, and to take measures reason-
ably designed to prevent their agents, from using,
disclosing, or permitting access to individually iden-
tifiable financial information pertaining to any cus-
tomer except—
‘‘(A) for the provision of the financial serv-
ices 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 Fed-
eral 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.—Not-
withstanding 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 col-
lected that pertains to such members; or
‘‘(B) a credit union intends (with the ap-
proval 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 reason-
ably designed to prevent their agents, from using,
disclosing, or permitting access to individually iden-
tifiable financial information pertaining to any mem-
ber except—
‘‘(A) for the provision of the financial serv-
ices 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 oth-
erwise required by law.’’.
son, including another affiliate or an agent of
such company or affiliate; and
‘‘(3) to refrain, and to take measures reason-
ably designed to prevent their agents, from using,
disclosing, or permitting access to individually iden-
tifiable financial information pertaining to any such
customer except—
‘‘(A) for the provision of the financial serv-
ices 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 oth-
erwise required by law.’’.
(b) SAVINGS AND LOAN HOLDING COMPANIES.—Sec-
tion 10 of the Home Owners’ Loan Act (12 U.S.C. 1467a)
is amended by adding at the end the following new sub-
section:
‘‘(u) PRIVACY OF FINANCIAL INFORMATION.—Not-
withstanding any other provision of law, the Director shall
prescribe regulations to require any savings and loan hold-
ing company and any affiliate of a savings and loan hold-
ing company (other than a depository institution subsidi-
ary 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 col-
lected that pertains to such customer; or
‘‘(B) the company or affiliate intends (with
the approval of the customer pursuant to para-
graph (3)(B)) to offer financial information
pertaining to such customer to any other per-
son, including another affiliate or an agent of
such company or affiliate; and
‘‘(3) to refrain, and to take measures reason-
ably designed to prevent their agents, from using,
disclosing, or permitting access to individually iden-
tifiable financial information pertaining to any such
customer except—
‘‘(A) for the provision of the financial serv-
ices 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.’’.
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