Which regulation governs the privacy of customer financial information in the banking sector?

The Gramm-Leach-Bliley Act (GLBA) is the regulation that specifically governs the privacy of customer financial information in the banking sector. Enacted in 1999, the GLBA allows for greater integration of financial services while ensuring that institutions take necessary steps to protect customers' personal and financial information. A key component of the GLBA is the provision that requires financial institutions to disclose their privacy policies to customers, outlining how personal information is collected, used, and shared. This act emphasizes the importance of safeguarding sensitive data and mandates that customers have the opportunity to opt out of having their information shared with non-affiliated third parties.

The other regulations mentioned do not primarily focus on the privacy of customer financial information. The Dodd-Frank Act, for instance, was established to promote financial stability and consumer protection in response to the 2008 financial crisis, but it does not specifically target privacy issues. The Bank Holding Company Act regulates the acquisition of bank holding companies and their operations rather than privacy concerns. Lastly, the Fair Housing Act addresses discrimination in housing and does not pertain to financial information privacy. Thus, the GLBA stands out as the key regulation governing the privacy of customer financial data in the banking sector.