Newsroom
NAFCU, trades voice concerns around data privacy draft bill, share support for SECURE Act
NAFCU along with several other organizations wrote to the House Energy and Commerce Subcommittee on Consumer Protection and Commerce in conjunction with their markup yesterday to consider federal data privacy and security standards as part of H.R. 8152, the American Data Privacy and Protection Act (ADPPA), introduced this week. Of note, the subcommittee passed ADPAA by voice vote and it is now headed to the full committee for a vote.
House Energy and Commerce Committee Chairman Frank Pallone, D-N.J., Ranking Member Cathy McMorris Rodgers, R-Wash., and Senate Commerce, Science, and Transportation Committee Ranking Member Roger Wicker, R-Miss., unveiled the bipartisan data privacy legislation earlier this month in an effort to reignite the conversation around the need for comprehensive federal data privacy and security standards. The bill was formally introduced in the House this week ahead of the markup.
In the letter, NAFCU and the groups expressed that while they are supportive of comprehensive federal data privacy standards, there are several provisions of concern under the ADPPA, particularly around existing data and privacy standards for financial institutions under the Gramm-Leach Bliley Act (GLBA). The groups also warned against the “overly rushed pace that this legislation is proceeding through the Committee process,” saying it did not allow for “adequate input from stakeholders.”
Citing the carefully structured privacy and data standards under the GLBA, the groups noted that this existing framework creates an “effective and successful balance between strong consumer protections and ensuring that consumer financial transactions take place in a safe and secure environment.”
However, the legislation in consideration excludes “unambiguous language for financial institutions to understand their exemption from the requirements of the bill,” and is disruptive to the data privacy system already set in place.
“The ADPPA should be amended to broaden the provision to exempt all GLBA regulated institutions to avoid such disruption,” wrote the groups. NAFCU and the organizations also questioned the feasibility of uniform enforcement from state-to-state. Varying enforcement by private rights of action would only lead to “different interpretations in the law,” noted the groups.
In addition, the groups also suggested that any federal privacy and data standards preempt existing state laws to “avoid inconsistent and duplicative requirements that could potentially disrupt financial transactions and the financial system.” While the ADPPA would preempt many state laws, it would also provide many exceptions that undermine the preemption.
“The ADPPA should be amended to create a clear and direct preemption of all state privacy and data protection provisions to prevent the continued patchwork of requirements imposed on companies,” suggested the group.
During the markup, lawmakers also passed the Securing and Enabling Commerce Using Remote and Electronic Notarization (SECURE) Act, in a 22-0 vote, which will provide businesses and consumers the ability to execute critical documents using two-way audiovisual communication. NAFCU and other trades shared support for the SECURE Act, in a letter to the subcommittee, stating that its passage would be critical in helping businesses“ leverage technology to continue to keep Americans safe while also meeting their needs into the future through innovation.” This legislation will also head to the full committee for a vote.
NAFCU has long advocated for comprehensive federal data privacy standards through its six data privacy principles and will continue to monitor movement on federal data privacy legislation.
Share This
Related Resources
Add to Calendar 2024-03-26 09:00:00 2024-03-26 09:00:00 Ensuring Safety and Soundness with AI Listen On: Key Takeaways: [03:48] The regulators are very focused on fairness in lending especially when it comes to using AI and outside models. The industry is moving very fast. [08:25] Articulating a business use case and how partnering with a Fintech can support it is the first step in having a successful conversation with your board. [10:30] Talk to your account executive at your Fintech and have them help you overcome objections. [15:01] Plan for oversight. It is not set and forget it. Your regulators are going to want to know how you are overseeing that from a 3rd party risk management standpoint. [15:47] Have a handle on your reserves and capacity for lending and start small and grow slowly. Web NAFCU digital@nafcu.org America/New_York public
Ensuring Safety and Soundness with AI
preferred partner
Upstart
Podcast
Help Ease Your Members' Loan Payment Concerns
Planning, Auto Loans, Research
preferred partner
TruStage
Blog Post
The Value of Risk Management in Cybersecurity
preferred partner
DefenseStorm
Video
Add to Calendar 2024-03-13 14:00:00 2024-03-13 14:00:00 Digital Assets in Credit Unions: What Are the AML Risks? The digital asset boom is upon us. Like it or not, you have to deal with it effectively with your members, credit unions are on the frontlines of crypto adoption. Even the NCUA has been providing more and more guidance on different aspects of digital assets. You need to be prepared. How? By understanding the core basics of digital assets (specifically cryptocurrencies) the risks that it poses to credit unions and how you can be better prepared to handle issues when they arise. In this webinar, Understanding the Digital Assets Boom, you’ll focus on the basics of digital assets, a background of cryptocurrencies and types, the regulations that are established and the proposals that are being considered and how to position yourself to understand all of these components and include them in your day-to-day roles. Key Takeaways Comprehend the basics of digital assets including cryptocurrencies Understand currently established regulations and what the future has in store, specifically in 2024 Identify and remediate issues that arise in your credit union Register Now $295 Members | $395 Nonmembers(Additional $50 for USB)One registration gives your entire team access to the live webinar and on-demand recording until March 13, 2025Go to the Online Training Center to access the webinar after purchase » Who Should Attend NCCOs NCRMs Compliance and risk titles Education Credits NCCOs will receive 1.0 CEUs for participating in this webinar NCRMs will recieve 1.0 CEUs for participating in this webinar Web NAFCU digital@nafcu.org America/New_York public
Digital Assets in Credit Unions: What Are the AML Risks?
Credits: NCCO, NCRM
Webinar
Get daily updates.
Subscribe to NAFCU today.