Independent Banker - March 2018 - 78

Risks & Rules
COMPLIANCE CORNER
Focus: The Right to
Financial Privacy Act
What community bankers need to know about protecting and disclosing
customers' fi nancial records.
By Mary Thorson Wright
I
f you defi ne " privacy " as
" the state of being free from
public attention, " then the
title of the Right to Financial
Privacy Act (RFPA) sounds
like a customer's fi nancial records are
absolutely protected from disclosure.
While there are privacy and confi dentiality
rules community banks must
observe, the RFPA limits the audience
and process for fi nancial records'
disclosure but does not offer carte
blanche coverage. What are the rules,
and how are they different?
The RFPA was enacted in 1978 and
covers requests for fi nancial records
that fi nancial institutions receive
from a federal government authority.
It defi nes " government authority "
as any agency or department of
the United States, or any offi cer,
employee or agent thereof. It defi nes
" fi nancial record " as an original of, a
copy of, or information known to have
76 ICBA Independent Banker March 2018
been derived from any record held
by a fi nancial institution pertaining
to a customer's relationship with the
fi nancial institution.
The RFPA requires that:
» a customer receives notice before
fi nancial institutions disclose the
customer's fi nancial records to
the government
» a customer has a right to challenge
the release of his or her fi nancial
records to the government

Independent Banker - March 2018

Table of Contents for the Digital Edition of Independent Banker - March 2018

Table of Contents
Independent Banker - March 2018 - Intro
Independent Banker - March 2018 - Cover1
Independent Banker - March 2018 - Cover2
Independent Banker - March 2018 - Table of Contents
Independent Banker - March 2018 - 2
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Independent Banker - March 2018 - Cover3
Independent Banker - March 2018 - Cover4
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