Current through Reg. 50, No. 13; March 28, 2025
(a) If a covered
entity receives nonpublic personal financial information from a nonaffiliated
financial institution under an exception in §
22.18 of this title (relating to
Exceptions to Notice and Opt Out Requirements for Disclosure of Nonpublic
Personal Financial Information for Processing and Servicing Transactions) and
§
22.19 of this title (relating to
Other Exceptions to Notice and Opt Out Requirements for Disclosure of Nonpublic
Personal Financial Information), the covered entity's disclosure and use of
that information is limited as follows:
(1)
the covered entity may disclose the information to the affiliates of the
financial institution from which the covered entity received the
information;
(2) the covered entity
may disclose the information to its affiliates, but the covered entity's
affiliates may, in turn, disclose and use the information only to the extent
that the covered entity may disclose and use the information; and
(3) the covered entity may disclose and use
the information pursuant to an exception in §
22.18 and §
22.19 of this title in the
ordinary course of business to carry out the activity covered by the exception
under which the covered entity received the information.
(b) If a covered entity receives information
from a nonaffiliated financial institution for claims settlement purposes, the
covered entity may disclose the information for fraud prevention, or in
response to a properly authorized subpoena. The covered entity may not disclose
that information to a third party for marketing purposes or use that
information for its own marketing purposes.
(c) If a covered entity receives nonpublic
personal financial information from a nonaffiliated financial institution other
than under an exception in §
22.18 and §
22.19 of this title, the covered
entity may disclose the information only:
(1)
to the affiliates of the financial institution from which the covered entity
received the information;
(2) to
its affiliates, but its affiliates may, in turn, disclose the information only
to the extent that the covered entity may disclose the information;
and
(3) to any other person, if the
disclosure would be lawful if made directly to that person by the financial
institution from which the covered entity received the information.
(d) If a covered entity obtains a
customer list from a nonaffiliated financial institution outside of the
exceptions in §
22.18 and §
22.19 of this title:
(1) the covered entity may use that list for
its own purposes; and
(2) the
covered entity may disclose that list to another nonaffiliated third party only
if the financial institution from which the covered entity purchased the list
could have lawfully disclosed the list to that third party. That is, the
covered entity may disclose the list in accordance with the privacy policy of
the financial institution from which the covered entity received the list, as
limited by the opt out direction of each consumer whose nonpublic personal
financial information the covered entity intends to disclose, and the covered
entity may disclose the list in accordance with an exception in §
22.18 and §
22.19 of this title, such as to
the covered entity's attorneys or accountants.
(e) If a covered entity discloses nonpublic
personal financial information to a nonaffiliated third party under an
exception in §
22.18 and §
22.19 of this title, the third
party may disclose and use that information only as follows:
(1) the third party may disclose the
information to the covered entity's affiliates;
(2) the third party may disclose the
information to its affiliates, but its affiliates may, in turn, disclose and
use the information only to the extent that the third party may disclose and
use the information; and
(3) the
third party may disclose and use the information pursuant to an exception in
§
22.18 or §
22.19 of this title in the
ordinary course of business to carry out the activity covered by the exception
under which it received the information.
(f) If a covered entity discloses nonpublic
personal financial information to a nonaffiliated third party other than under
an exception in §
22.18 and §
22.19 of this title, the third
party may disclose the information only:
(1)
to the covered entity's affiliates;
(2) to the third party's affiliates, but the
third party's affiliates, in turn, may disclose the information only to the
extent the third party can disclose the information; and
(3) to any other person, if the disclosure
would be lawful if the covered entity made it directly to that
person.
