--- title: "16 CFR 314.2 GLBA: Definitions" canonical: "https://dposchool.com/glba/section/314.2" source: "https://www.ecfr.gov/current/title-16/section-314.2" source_note: "Source: United States Code, title 15, published by the Office of the Law Revision Counsel of the U.S. House of Representatives (uscode.house.gov), release point 119-136. The editorial and statutory notes are not reproduced. Source: Electronic Code of Federal Regulations (eCFR), title 12, up to date as of 29 October 2026, from the eCFR API (ecfr.gov). The eCFR is an editorial compilation of the CFR and Federal Register amendments, not an official legal edition of the CFR. Source: Electronic Code of Federal Regulations (eCFR), title 16, up to date as of 29 October 2026, from the eCFR API (ecfr.gov). The eCFR is an editorial compilation of the CFR and Federal Register amendments, not an official legal edition of the CFR." text_as_of: "2026-10-29" language: "en" publisher: "DPO School" --- 16 CFR 314.2 GLBA · Part 314: STANDARDS FOR SAFEGUARDING CUSTOMER INFORMATION # 16 CFR 314.2 GLBA: Definitions eCFR, up to date as of 29 October 2026. Retrieved 30 October 2026. ## Official text ### 16 CFR 314.2(a) **(a)** Authorized user means any employee, contractor, agent, customer, or other person that is authorized to access any of your information systems or data. **(b)(1)** Consumer means an individual who obtains or has obtained a financial product or service from you that is to be used primarily for personal, family, or household purposes, or that individual's legal representative. #### 16 CFR 314.2(a)(2) **(2)** For example: ##### 16 CFR 314.2(a)(2)(i) **(i)** An individual who applies to you for credit for personal, family, or household purposes is a consumer of a financial service, regardless of whether the credit is extended. ##### 16 CFR 314.2(a)(2)(ii) **(ii)** An individual who provides nonpublic personal information to you in order to obtain a determination about whether he or she may qualify for a loan to be used primarily for personal, family, or household purposes is a consumer of a financial service, regardless of whether the loan is extended. ##### 16 CFR 314.2(a)(2)(iii) **(iii)** An individual who provides nonpublic personal information to you in connection with obtaining or seeking to obtain financial, investment, or economic advisory services is a consumer, regardless of whether you establish a continuing advisory relationship. ##### 16 CFR 314.2(a)(2)(iv) **(iv)** If you hold ownership or servicing rights to an individual's loan that is used primarily for personal, family, or household purposes, the individual is your consumer, even if you hold those rights in conjunction with one or more other institutions. (The individual is also a consumer with respect to the other financial institutions involved.) An individual who has a loan in which you have ownership or servicing rights is your consumer, even if you, or another institution with those rights, hire an agent to collect on the loan. ##### 16 CFR 314.2(a)(2)(v) **(v)** An individual who is a consumer of another financial institution is not your consumer solely because you act as agent for, or provide processing or other services to, that financial institution. ##### 16 CFR 314.2(a)(2)(vi) **(vi)** An individual is not your consumer solely because he or she has designated you as trustee for a trust. ##### 16 CFR 314.2(a)(2)(vii) **(vii)** An individual is not your consumer solely because he or she is a beneficiary of a trust for which you are a trustee. ##### 16 CFR 314.2(a)(2)(viii) **(viii)** An individual is not your consumer solely because he or she is a participant or a beneficiary of an employee benefit plan that you sponsor or for which you act as a trustee or fiduciary. ### 16 CFR 314.2(c) **(c)** Customer means a consumer who has a customer relationship with you. ### 16 CFR 314.2(d) **(d)** Customer information means any record containing nonpublic personal information about a customer of a financial institution, whether in paper, electronic, or other form, that is handled or maintained by or on behalf of you or your affiliates. **(e)(1)** Customer relationship means a continuing relationship between a consumer and you under which you provide one or more financial products or services to the consumer that are to be used primarily for personal, family, or household purposes. #### 16 CFR 314.2(d)(2) **(2)** For example: ##### 16 CFR 314.2(d)(2)(i) **(i)** Continuing relationship. A consumer has a continuing relationship with you if the consumer: ###### 16 CFR 314.2(d)(2)(i)(A) **(A)** Has a credit or investment account with you; ###### 16 CFR 314.2(d)(2)(i)(B) **(B)** Obtains a loan from you; ###### 16 CFR 314.2(d)(2)(i)(C) **(C)** Purchases an insurance product from you; ###### 16 CFR 314.2(d)(2)(i)(D) **(D)** Holds an investment product through you, such as when you act as a custodian for securities or for assets in an Individual Retirement Arrangement; ###### 16 CFR 314.2(d)(2)(i)(E) **(E)** Enters into an agreement or understanding with you whereby you undertake to arrange or broker a home mortgage loan, or credit to purchase a vehicle, for the consumer; ###### 16 CFR 314.2(d)(2)(i)(F) **(F)** Enters into a lease of personal property on a non-operating basis with you; ###### 16 CFR 314.2(d)(2)(i)(G) **(G)** Obtains financial, investment, or economic advisory services from you for a fee; ###### 16 CFR 314.2(d)(2)(i)(H) **(H)** Becomes your client for the purpose of obtaining tax preparation or credit counseling services from you; ###### 16 CFR 314.2(d)(2)(i)(I) **(I)** Obtains career counseling while seeking employment with a financial institution or the finance, accounting, or audit department of any company (or while employed by such a financial institution or department of any company); ###### 16 CFR 314.2(d)(2)(i)(J) **(J)** Is obligated on an account that you purchase from another financial institution, regardless of whether the account is in default when purchased, unless you do not locate the consumer or attempt to collect any amount from the consumer on the account; ###### 16 CFR 314.2(d)(2)(i)(K) **(K)** Obtains real estate settlement services from you; or ###### 16 CFR 314.2(d)(2)(i)(L) **(L)** Has a loan for which you own the servicing rights. ##### 16 CFR 314.2(d)(2)(ii) **(ii)** No continuing relationship. A consumer does not, however, have a continuing relationship with you if: ###### 16 CFR 314.2(d)(2)(ii)(A) **(A)** The consumer obtains a financial product or service from you only in isolated transactions, such as using your ATM to withdraw cash from an account at another financial institution; purchasing a money order from you; cashing a check with you; or making a wire transfer through you; ###### 16 CFR 314.2(d)(2)(ii)(B) **(B)** You sell the consumer's loan and do not retain the rights to service that loan; ###### 16 CFR 314.2(d)(2)(ii)(C) **(C)** You sell the consumer airline tickets, travel insurance, or traveler's checks in isolated transactions; ###### 16 CFR 314.2(d)(2)(ii)(D) **(D)** The consumer obtains one-time personal or real property appraisal services from you; or ###### 16 CFR 314.2(d)(2)(ii)(E) **(E)** The consumer purchases checks for a personal checking account from you. ### 16 CFR 314.2(f) **(f)** Encryption means the transformation of data into a form that results in a low probability of assigning meaning without the use of a protective process or key, consistent with current cryptographic standards and accompanied by appropriate safeguards for cryptographic key material. **(g)(1)** Financial product or service means any product or service that a financial holding company could offer by engaging in a financial activity under section 4(k) of the Bank Holding Company Act of 1956 (12 U.S.C. 1843(k)). #### 16 CFR 314.2(f)(2) **(2)** Financial service includes your evaluation or brokerage of information that you collect in connection with a request or an application from a consumer for a financial product or service. **(h)(1)** Financial institution means any institution the business of which is engaging in an activity that is financial in nature or incidental to such financial activities as described in section 4(k) of the Bank Holding Company Act of 1956, 12 U.S.C. 1843(k). An institution that is significantly engaged in financial activities, or significantly engaged in activities incidental to such financial activities, is a financial institution. #### 16 CFR 314.2(f)(2) **(2)** Examples of financial institutions are as follows: ##### 16 CFR 314.2(f)(2)(i) **(i)** A retailer that extends credit by issuing its own credit card directly to consumers is a financial institution because extending credit is a financial activity listed in 12 CFR 225.28(b)(1) and referenced in section 4(k)(4)(F) of the Bank Holding Company Act of 1956 (12 U.S.C. 1843(k)(4)(F)), and issuing that extension of credit through a proprietary credit card demonstrates that a retailer is significantly engaged in extending credit. ##### 16 CFR 314.2(f)(2)(ii) **(ii)** An automobile dealership that, as a usual part of its business, leases automobiles on a nonoperating basis for longer than 90 days is a financial institution with respect to its leasing business because leasing personal property on a nonoperating basis where the initial term of the lease is at least 90 days is a financial activity listed in 12 CFR 225.28(b)(3) and referenced in section 4(k)(4)(F) of the Bank Holding Company Act, 12 U.S.C. 1843(k)(4)(F). ##### 16 CFR 314.2(f)(2)(iii) **(iii)** A personal property or real estate appraiser is a financial institution because real and personal property appraisal is a financial activity listed in 12 CFR 225.28(b)(2)(i) and referenced in section 4(k)(4)(F) of the Bank Holding Company Act, 12 U.S.C. 1843(k)(4)(F). ##### 16 CFR 314.2(f)(2)(iv) **(iv)** A career counselor that specializes in providing career counseling services to individuals currently employed by or recently displaced from a financial organization, individuals who are seeking employment with a financial organization, or individuals who are currently employed by or seeking placement with the finance, accounting or audit departments of any company is a financial institution because such career counseling activities are financial activities listed in 12 CFR 225.28(b)(9)(iii) and referenced in section 4(k)(4)(F) of the Bank Holding Company Act, 12 U.S.C. 1843(k)(4)(F). ##### 16 CFR 314.2(f)(2)(v) **(v)** A business that prints and sells checks for consumers, either as its sole business or as one of its product lines, is a financial institution because printing and selling checks is a financial activity that is listed in 12 CFR 225.28(b)(10)(ii) and referenced in section 4(k)(4)(F) of the Bank Holding Company Act, 12 U.S.C. 1843(k)(4)(F). ##### 16 CFR 314.2(f)(2)(vi) **(vi)** A business that regularly wires money to and from consumers is a financial institution because transferring money is a financial activity referenced in section 4(k)(4)(A) of the Bank Holding Company Act, 12 U.S.C. 1843(k)(4)(A), and regularly providing that service demonstrates that the business is significantly engaged in that activity. ##### 16 CFR 314.2(f)(2)(vii) **(vii)** A check cashing business is a financial institution because cashing a check is exchanging money, which is a financial activity listed in section 4(k)(4)(A) of the Bank Holding Company Act, 12 U.S.C. 1843(k)(4)(A). ##### 16 CFR 314.2(f)(2)(viii) **(viii)** An accountant or other tax preparation service that is in the business of completing income tax returns is a financial institution because tax preparation services is a financial activity listed in 12 CFR 225.28(b)(6)(vi) and referenced in section 4(k)(4)(G) of the Bank Holding Company Act, 12 U.S.C. 1843(k)(4)(G). ##### 16 CFR 314.2(f)(2)(ix) **(ix)** A business that operates a travel agency in connection with financial services is a financial institution because operating a travel agency in connection with financial services is a financial activity listed in 12 CFR 225.86(b)(2) and referenced in section 4(k)(4)(G) of the Bank Holding Company Act, 12 U.S.C. 1843(k)(4)(G). ##### 16 CFR 314.2(f)(2)(x) **(x)** An entity that provides real estate settlement services is a financial institution because providing real estate settlement services is a financial activity listed in 12 CFR 225.28(b)(2)(viii) and referenced in section 4(k)(4)(F) of the Bank Holding Company Act, 12 U.S.C. 1843(k)(4)(F). ##### 16 CFR 314.2(f)(2)(xi) **(xi)** A mortgage broker is a financial institution because brokering loans is a financial activity listed in 12 CFR 225.28(b)(1) and referenced in section 4(k)(4)(F) of the Bank Holding Company Act, 12 U.S.C. 1843(k)(4)(F). ##### 16 CFR 314.2(f)(2)(xii) **(xii)** An investment advisory company and a credit counseling service are each financial institutions because providing financial and investment advisory services are financial activities referenced in section 4(k)(4)(C) of the Bank Holding Company Act, 12 U.S.C. 1843(k)(4)(C). ##### 16 CFR 314.2(f)(2)(xiii) **(xiii)** A company acting as a finder in bringing together one or more buyers and sellers of any product or service for transactions that the parties themselves negotiate and consummate is a financial institution because acting as a finder is an activity that is financial in nature or incidental to a financial activity listed in 12 CFR 225.86(d)(1). #### 16 CFR 314.2(f)(3) **(3)** Financial institution does not include: ##### 16 CFR 314.2(f)(3)(i) **(i)** Any person or entity with respect to any financial activity that is subject to the jurisdiction of the Commodity Futures Trading Commission under the Commodity Exchange Act (7 U.S.C. 1 et seq.); ##### 16 CFR 314.2(f)(3)(ii) **(ii)** The Federal Agricultural Mortgage Corporation or any entity chartered and operating under the Farm Credit Act of 1971 (12 U.S.C. 2001 et seq.); ##### 16 CFR 314.2(f)(3)(iii) **(iii)** Institutions chartered by Congress specifically to engage in securitizations, secondary market sales (including sales of servicing rights) or similar transactions related to a transaction of a consumer, as long as such institutions do not sell or transfer nonpublic personal information to a nonaffiliated third party other than as permitted by §§ 313.14 and 313.15; or ##### 16 CFR 314.2(f)(3)(iv) **(iv)** Entities that engage in financial activities but that are not significantly engaged in those financial activities, and entities that engage in activities incidental to financial activities but that are not significantly engaged in activities incidental to financial activities. #### 16 CFR 314.2(f)(4) **(4)** Examples of entities that are not significantly engaged in financial activities are as follows: ##### 16 CFR 314.2(f)(4)(i) **(i)** A retailer is not a financial institution if its only means of extending credit are occasional “lay away” and deferred payment plans or accepting payment by means of credit cards issued by others. ##### 16 CFR 314.2(f)(4)(ii) **(ii)** A retailer is not a financial institution merely because it accepts payment in the form of cash, checks, or credit cards that it did not issue. ##### 16 CFR 314.2(f)(4)(iii) **(iii)** A merchant is not a financial institution merely because it allows an individual to “run a tab.” ##### 16 CFR 314.2(f)(4)(iv) **(iv)** A grocery store is not a financial institution merely because it allows individuals to whom it sells groceries to cash a check, or write a check for a higher amount than the grocery purchase and obtain cash in return. ##### 16 CFR 314.2(f)(4)(i) **(i)** Information security program means the administrative, technical, or physical safeguards you use to access, collect, distribute, process, protect, store, use, transmit, dispose of, or otherwise handle customer information. ### 16 CFR 314.2(j) **(j)** Information system means a discrete set of electronic information resources organized for the collection, processing, maintenance, use, sharing, dissemination or disposition of electronic information containing customer information or connected to a system containing customer information, as well as any specialized system such as industrial/process controls systems, telephone switching and private branch exchange systems, and environmental controls systems that contains customer information or that is connected to a system that contains customer information. ### 16 CFR 314.2(k) **(k)** Multi-factor authentication means authentication through verification of at least two of the following types of authentication factors: #### 16 CFR 314.2(k)(1) **(1)** Knowledge factors, such as a password; #### 16 CFR 314.2(k)(2) **(2)** Possession factors, such as a token; or #### 16 CFR 314.2(k)(3) **(3)** Inherence factors, such as biometric characteristics. **(l)(1)** Nonpublic personal information means: **(i)** Personally identifiable financial information; and **(ii)** Any list, description, or other grouping of consumers (and publicly available information pertaining to them) that is derived using any personally identifiable financial information that is not publicly available. #### 16 CFR 314.2(k)(2) **(2)** Nonpublic personal information does not include: ##### 16 CFR 314.2(k)(2)(i) **(i)** Publicly available information, except as included on a list described in paragraph (l)(1)(ii) of this section; or ##### 16 CFR 314.2(k)(2)(ii) **(ii)** Any list, description, or other grouping of consumers (and publicly available information pertaining to them) that is derived without using any personally identifiable financial information that is not publicly available. #### 16 CFR 314.2(k)(3) **(3)** For example: ##### 16 CFR 314.2(k)(3)(i) **(i)** Nonpublic personal information includes any list of individuals' names and street addresses that is derived in whole or in part using personally identifiable financial information (that is not publicly available), such as account numbers. ##### 16 CFR 314.2(k)(3)(ii) **(ii)** Nonpublic personal information does not include any list of individuals' names and addresses that contains only publicly available information, is not derived, in whole or in part, using personally identifiable financial information that is not publicly available, and is not disclosed in a manner that indicates that any of the individuals on the list is a consumer of a financial institution. ### 16 CFR 314.2(m) **(m)** Notification event means acquisition of unencrypted customer information without the authorization of the individual to which the information pertains. Customer information is considered unencrypted for this purpose if the encryption key was accessed by an unauthorized person. Unauthorized acquisition will be presumed to include unauthorized access to unencrypted customer information unless you have reliable evidence showing that there has not been, or could not reasonably have been, unauthorized acquisition of such information. ### 16 CFR 314.2(n) **(n)** Penetration testing means a test methodology in which assessors attempt to circumvent or defeat the security features of an information system by attempting penetration of databases or controls from outside or inside your information systems. **(o)(1)** Personally identifiable financial information means any information: **(i)** A consumer provides to you to obtain a financial product or service from you; **(ii)** About a consumer resulting from any transaction involving a financial product or service between you and a consumer; or **(iii)** You otherwise obtain about a consumer in connection with providing a financial product or service to that consumer. #### 16 CFR 314.2(n)(2) **(2)** For example: ##### 16 CFR 314.2(n)(2)(i) **(i)** Information included. Personally identifiable financial information includes: ###### 16 CFR 314.2(n)(2)(i)(A) **(A)** Information a consumer provides to you on an application to obtain a loan, credit card, or other financial product or service; ###### 16 CFR 314.2(n)(2)(i)(B) **(B)** Account balance information, payment history, overdraft history, and credit or debit card purchase information; ###### 16 CFR 314.2(n)(2)(i)(C) **(C)** The fact that an individual is or has been one of your customers or has obtained a financial product or service from you; ###### 16 CFR 314.2(n)(2)(i)(D) **(D)** Any information about your consumer if it is disclosed in a manner that indicates that the individual is or has been your consumer; ###### 16 CFR 314.2(n)(2)(i)(E) **(E)** Any information that a consumer provides to you or that you or your agent otherwise obtain in connection with collecting on, or servicing, a credit account; ###### 16 CFR 314.2(n)(2)(i)(F) **(F)** Any information you collect through an internet “cookie” (an information collecting device from a web server); and ###### 16 CFR 314.2(n)(2)(i)(G) **(G)** Information from a consumer report. ##### 16 CFR 314.2(n)(2)(ii) **(ii)** Information not included. Personally identifiable financial information does not include: ###### 16 CFR 314.2(n)(2)(ii)(A) **(A)** A list of names and addresses of customers of an entity that is not a financial institution; and ###### 16 CFR 314.2(n)(2)(ii)(B) **(B)** Information that does not identify a consumer, such as aggregate information or blind data that does not contain personal identifiers such as account numbers, names, or addresses. **(p)(1)** Publicly available information means any information that you have a reasonable basis to believe is lawfully made available to the general public from: **(i)** Federal, State, or local government records; **(ii)** Widely distributed media; or **(iii)** Disclosures to the general public that are required to be made by Federal, State, or local law. #### 16 CFR 314.2(n)(2) **(2)** You have a reasonable basis to believe that information is lawfully made available to the general public if you have taken steps to determine: ##### 16 CFR 314.2(n)(2)(i) **(i)** That the information is of the type that is available to the general public; and ##### 16 CFR 314.2(n)(2)(ii) **(ii)** Whether an individual can direct that the information not be made available to the general public and, if so, that your consumer has not done so. #### 16 CFR 314.2(n)(3) **(3)** For example: ##### 16 CFR 314.2(n)(3)(i) **(i)** Government records. Publicly available information in government records includes information in government real estate records and security interest filings. ##### 16 CFR 314.2(n)(3)(ii) **(ii)** Widely distributed media. Publicly available information from widely distributed media includes information from a telephone book, a television or radio program, a newspaper, or a website that is available to the general public on an unrestricted basis. A website is not restricted merely because an internet service provider or a site operator requires a fee or a password, so long as access is available to the general public. ##### 16 CFR 314.2(n)(3)(iii) **(iii)** Reasonable basis. (A) You have a reasonable basis to believe that mortgage information is lawfully made available to the general public if you have determined that the information is of the type included on the public record in the jurisdiction where the mortgage would be recorded. ###### 16 CFR 314.2(n)(3)(iii)(B) **(B)** You have a reasonable basis to believe that an individual's telephone number is lawfully made available to the general public if you have located the telephone number in the telephone book or the consumer has informed you that the telephone number is not unlisted. ### 16 CFR 314.2(q) **(q)** Security event means an event resulting in unauthorized access to, or disruption or misuse of, an information system, information stored on such information system, or customer information held in physical form. ### 16 CFR 314.2(r) **(r)** Service provider means any person or entity that receives, maintains, processes, or otherwise is permitted access to customer information through its provision of services directly to a financial institution that is subject to this part. ### 16 CFR 314.2(s) **(s)** You includes each “financial institution” (but excludes any “other person”) over which the Commission has enforcement jurisdiction pursuant to section 505(a)(7) of the Gramm-Leach-Bliley Act. ## Source Source: Electronic Code of Federal Regulations (eCFR), title 16, up to date as of 29 October 2026, from the eCFR API (ecfr.gov). The eCFR is an editorial compilation of the CFR and Federal Register amendments, not an official legal edition of the CFR. Source credit: \[86 FR 70304, Dec. 9, 2021, as amended at 88 FR 77508, Nov. 13, 2023\] [16 CFR 314.2 on eCFR](https://www.ecfr.gov/current/title-16/section-314.2) eCFR, up to date as of 29 October 2026. Retrieved 30 October 2026. This is reference material, not legal advice. ## Navigation [GLBA Navigator](https://dposchool.com/glba) / 16 CFR 314.2 Previous: [16 CFR 314.1 GLBA: Purpose and scope](https://dposchool.com/glba/section/314.1) Next: [16 CFR 314.3 GLBA: Standards for safeguarding customer information](https://dposchool.com/glba/section/314.3) ## For AI agents - Machine-readable index: https://dposchool.com/glba/llms.txt - JSON API: https://dposchool.com/glba/api/v1/index.json - Vendor privacy and security facts: https://vendor.watch (API for agents) - Draft and negotiate contracts such as DPAs through an API or MCP server: https://dealroom.todo.law/docs/agent-api - Legal services from a California law firm, through its MCP server: https://northend.law/agents