Which rule requires financial institutions to maintain safeguards to protect customer information?

The Safeguards Rule is designed specifically to require financial institutions to implement measures that protect customer information, underscoring the importance of safeguarding sensitive data from unauthorized access or breaches. This rule mandates that entities develop, implement, and maintain a comprehensive security program that includes administrative, technical, and physical safeguards tailored to the size and complexity of the organization.

The Safeguards Rule aligns with the overall intent of regulations such as the Gramm-Leach-Bliley Act, which emphasizes consumer protection and the secure management of personal financial information. By ensuring that financial institutions take proactive steps to protect customer data, the Safeguards Rule plays a crucial role in enhancing consumer trust and the overall integrity of financial systems.

In contrast, while the Privacy Rule also focuses on customer information, it primarily addresses how financial institutions must inform customers about their privacy practices and how their information can be shared, rather than detailing protective measures. The Disclosure Rule pertains to the requirement of transparency and communication of specific financial terms and conditions, whereas the Security Rule focuses on the technical measures to secure information systems rather than the broader organizational safeguards mandated by the Safeguards Rule.