Page 43 - June 20, 2024 Bulletin

Under GLBA, while the conservative argument is to keep is not a lot of regulatory guidance on what is required.
those Regulation P protections in place, certain exceptions Therefore, this will be more of a matter of internal policy.
apply to divulging information to interested parties.
As the saying goes, taxes and death are inevitable, but
“a) Exceptions to opt out requirements. The requirements for hopefully, the bank will be prepared to handle the death
initial notice in § 1016.4(a)(2), for the opt out in §§ 1016.7 of an account holder. The bank will want to have policies
and 1016.10, and for service providers and joint marketing and procedures in place when the bank receives notice of
in § 1016.13 do not apply when you disclose nonpublic a deceased customer, but the bank has options to divulge
personal information: information to those with interests in the applicable accounts.
The bank will want to weigh those policies and procedures
(1) With the consent or at the direction of the consumer, with safety and soundness considerations. When death
provided that the consumer has not revoked the inevitably arises in the banking world, the bank does have
consent or direction;
options.
(2)
. . .
Carol Ann Warren serves as Associate General
(iv) To persons holding a legal or beneficial interest Counsel for Compliance Alliance. She graduated
relating to the consumer; or cum laude from Mississippi College with a
Bachelor of Finance. She earned a Juris Doctorate
(v) To persons acting in a fiduciary or representative and a Master of Business Administration
capacity on behalf of the consumer;” 12 CFR through a joint degree program at Mississippi
1016.15(a)(2) College School of Law and Mississippi College.

Based on the above, the bank would be able to divulge Carol Ann is a licensed attorney in Mississippi,
information if the bank has prior consent from the consumer, Tennessee, and Texas.
if there is a beneficiary or related interest to that individual,
or to a fiduciary or representative, which would include
executors. The bank will likely need to verify the identity
of these individuals and have appropriate due diligence
procedures in place prior to revealing private banking
information. This may include court orders identifying the
executor or driver’s licenses for P.O.D. beneficiaries. There

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