Quiero saber acerca de...

70026

Federal Register / Vol. 86, No. 234 / Thursday, December 9, 2021 / Rules and Regulations
khammond on DSKJM1Z7X2PROD with RULES

activities is a motor vehicle dealer is not a financial institution merely because it accepts payment in the form of cash, checks, or credit cards that it did not issue.

q You includes each financial institution over which the Commission has rulemaking authority pursuant to section 504a1C of the GrammLeach-Bliley Act 15 U.S.C.
6804a1C.
4. Amend 313.4 by adding a heading for paragraph c3 and revising paragraphs c3i and e to read as follows:

a1 and b2, and adding paragraph e to read as follows:
313.5 Annual privacy notice to customers required.

a In general1 General rule.
Except as provided by paragraph e of this section, you must provide a clear and conspicuous notice to customers that accurately reflects your privacy policies and practices not less than annually during the continuation of the customer relationship. Annually means at least once in any period of 12
consecutive months during which that relationship exists. You may define the 12-consecutive-month period, but you 313.4 Initial privacy notice to consumers must apply it to the customer on a consistent basis.
required.

b
c
2 Examples. Your customer becomes 3 Examplesi Examples of a former customer when:
establishing a customer relationship.
i In the case of a closed-end loan, the You establish a customer relationship customer pays the loan in full, you when the consumer:
charge off the loan, or you sell the loan A Executes the contract to obtain without retaining servicing rights.
credit from you or purchase insurance ii In the case of mortgage or vehicle from you; or loan brokering services, your customer B Executes the lease for personal has obtained a loan through you and property with you.
you no longer provide any statements or

notices to the customer concerning that e Exceptions to allow subsequent relationship, or has ceased using your delivery of notice1 General. You may services for such purposes.
provide the initial notice required by iii In cases where there is no paragraph a1 of this section within a definitive time at which the customer reasonable time after you establish a relationship has terminated, you have customer relationship if:
not communicated with the customer i Establishing the customer about the relationship for a period of 12
relationship is not at the customers consecutive months, other than to election; or provide annual privacy notices or ii Providing notice not later than promotional material.
when you establish a customer

relationship would substantially delay e Exception to annual privacy notice the customers transaction and customer requirement1 When exception agrees to receive the notice at a later available. You are not required to time.
deliver an annual privacy notice if you:
2 Examples of exceptionsi i Provide nonpublic personal Substantial delay of customers information to nonaffiliated third transaction. Providing notice not later parties only in accordance with the than when you establish a customer provisions of 313.13, 313.14, or relationship would substantially delay 313.15; and the customers transaction when you ii Have not changed your policies and the individual agree over the and practices with regard to disclosing telephone to enter into a customer nonpublic personal information from relationship involving prompt delivery the policies and practices that were of the financial product or service.
disclosed to the customer under ii No substantial delay of customers 313.6a2 through 5 and 9 in the transaction. Providing notice not later most recent privacy notice provided than when you establish a customer pursuant to this part.
relationship would not substantially 2 Delivery of annual privacy notice delay the customers transaction when after financial institution no longer the relationship is initiated in person at meets requirements for exception. If you your office or through other means by have been excepted from delivering an which the customer may view the annual privacy notice pursuant to notice, such as through a website.
paragraph e1 of this section and

change your policies or practices in such a way that you no longer meet the 5. Amend 313.5 by adding a heading requirements for that exception, you for paragraph a, revising paragraphs
VerDate Sep<11>2014

16:33 Dec 08, 2021

Jkt 256001

PO 00000

Frm 00050

Fmt 4700

Sfmt 4700

must comply with paragraph e2i or ii of this section, as applicable.
i Changes preceded by a revised privacy notice. If you no longer meet the requirements of paragraph e1 of this section because you change your policies or practices in such a way that 313.8 requires you to provide a revised privacy notice, you must provide an annual privacy notice in accordance with the timing requirement in paragraph a of this section, treating the revised privacy notice as an initial privacy notice.
ii Changes not preceded by a revised privacy notice. If you no longer meet the requirements of paragraph e1 of this section because you change your policies or practices in such a way that 313.8 does not require you to provide a revised privacy notice, you must provide an annual privacy notice within 100 days of the change in your policies or practices that causes you to no longer meet the requirement of paragraph e1.
iii Examples. A You change your policies and practices in such a way that you no longer meet the requirements of paragraph e1 of this section effective April 1 of year 1. Assuming you define the 12-consecutive-month period pursuant to paragraph a of this section as a calendar year, if you were required to provide a revised privacy notice under 313.8 and you provided that notice on March 1 of year 1, you must provide an annual privacy notice by December 31 of year 2. If you were not required to provide a revised privacy notice under 313.8, you must provide an annual privacy notice by July 9 of year 1.
B You change your policies and practices in such a way that you no longer meet the requirements of paragraph e1 of this section, and so provide an annual notice to your customers. After providing the annual notice to your customers, you once again meet the requirements of paragraph e1 of this section for an exception to the annual notice requirement. You do not need to provide additional annual notice to your customers until such time as you no longer meet the requirements of paragraph e1 of this section.
6. Amend 313.15 by revising paragraph a4 to read as follows:
313.15 Other exceptions to notice and opt out requirements.

a
4 To the extent specifically permitted or required under other provisions of law and in accordance with the Right to Financial Privacy Act of 1978 12 U.S.C. 3401 et seq., to law
E:FRFM09DER1.SGM

09DER1