Topic: Privacy
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If we have a situation that looks like elder abuse but which does not directly involve a customer, can we report that as elder abuse?
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Based on these facts, our recommendation is that you file a report with the Department of Aging only if the alleged victim is an “eligible adult.” First, we note that banks and their employees are not “mandated reporters” in Illinois and are not required to report on elder financial abuse. 320 ILCS 20/2(f-5). The elder…
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One of our brokers, who is a dual employee with our organization and an investment company, just joined our management committee, which receives daily large deposit and loan change reports. Can we share those reports with the dual employee?
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We do not believe that the federal privacy regulations would prevent you from sharing the management committee reports with the dual employee. With that said, unless the joint marketing agreement exception applies, you will have to follow the privacy regulations’ requirements as to any information disclosed to the investment company through the dual employee. Under…
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Another bank informed us that its shredding vendor had lost a box of checks that included our customers’ checks. Are we required to notify our customers of the breach?
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We are not aware of any federal or Illinois laws that impose a duty of notification on a bank whose customers’ checks are lost by another financial institution. Federal Law — Gramm-Leach-Bliley Act Under the federal banking agencies’ Interagency Guidelines Establishing Information Security Standards, you should “develop and implement a risk-based response program to address…
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What is the Illinois law on responding to subpoenas? Is it always mandatory to respond to a subpoena?
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Generally, a subpoena from the federal government must be honored once the bank receives a written certificate of compliance from the governmental authority. Customer privacy is generally not an issue, as federal and Illinois privacy laws allow banks to disclose customer financial records in response to a subpoena, subject to the limitations discussed below. 205…