🏦 Financial Sector Compliance

GLBA & FFIEC
Compliance

The FTC Safeguards Rule (GLBA) and FFIEC Cybersecurity Assessment Tool govern cybersecurity requirements for Ohio banks, credit unions, mortgage lenders, and financial services firms. Non-compliance means regulatory action, enforcement, and unlimited civil liability. Securafy specializes in financial sector compliance.

GLBA & FFIEC — What They Require

The Gramm-Leach-Bliley Act (GLBA) and its implementing FTC Safeguards Rule require financial institutions to develop, implement, and maintain a comprehensive information security program protecting customer financial information. The 2023 Safeguards Rule update significantly expanded technical requirements for non-bank financial institutions.

The FFIEC Cybersecurity Assessment Tool (CAT) is the framework used by federal examiners (OCC, FDIC, NCUA, Federal Reserve) to evaluate cybersecurity maturity at banks, credit unions, and depository institutions. Examiners use the CAT during safety and soundness examinations — weak scores directly impact your examination rating.

For Ohio community banks and credit unions, the stakes are high: examination findings related to cybersecurity can result in Matters Requiring Attention (MRAs), formal agreements, cease-and-desist orders, and civil money penalties. Securafy's financial sector practice helps you achieve and maintain examination-ready posture.

"Examiners don't want to see security tools — they want to see a documented, tested, risk-based information security program."

9
Required elements in every GLBA information security program
5
Cybersecurity maturity domains in the FFIEC CAT
30 days
Notification window for breaches under 2023 Safeguards Rule
$100K/day
Maximum civil penalty for willful GLBA violations
GLBA Safeguards Rule

The 9 Required Safeguards Rule Elements

The 2023 FTC Safeguards Rule requires every financial institution to implement these nine elements in their information security program. Organizations with 5,000+ customers must also designate a CISO and report to the board annually.

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1. Qualified Individual

Designate a qualified individual (CISO or equivalent) to oversee and implement the information security program. Must report to the board/senior officer at least annually.

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2. Risk Assessment

Conduct a documented, periodic risk assessment of customer information in all relevant information systems. Must identify reasonably foreseeable threats and assess controls.

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3. Safeguards Implementation

Implement safeguards to control identified risks. Must include: access controls, data inventory, encryption, MFA, secure development, penetration testing, and change management.

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4. Service Provider Oversight

Select and retain service providers that maintain appropriate safeguards and require them by contract to implement and maintain those safeguards. Annual due diligence reviews required.

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5. Evaluate & Adjust

Regularly evaluate your information security program in light of new risks, threats, and changes in your operations. Must adjust the program accordingly — documented annual reviews minimum.

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6. Incident Response Plan

Implement a written incident response plan governing detection, classification, response, and notification. Must include criteria for determining when notification to regulators is required.

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7. Encryption

Encrypt customer information in transit and at rest. The 2023 rule makes encryption explicitly required — not just "reasonable." Exceptions require documented compensating controls.

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8. Multi-Factor Authentication

Implement MFA for all individuals accessing customer information systems. Single-factor authentication is no longer acceptable under the 2023 Safeguards Rule for any information system containing customer financial data.

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9. Security Awareness Training

Train all personnel on information security risks and controls at least annually. Training must be tailored to staff roles and documented for examiner review.

FFIEC Examination

FFIEC CAT Cybersecurity Domains

The FFIEC CAT evaluates banks and credit unions across five cybersecurity maturity domains, each scored from Baseline to Innovative. Examiners expect most institutions to be at Evolving or above across all domains.

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Cyber Risk Management & Oversight

Board and management oversight, policies and procedures, IT asset management, risk management integration, and the IT risk appetite framework. Examiners look for board engagement and accountability structures.

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Threat Intelligence & Collaboration

Participation in FS-ISAC threat sharing, threat intelligence consumption, monitoring of emerging threats, and integration of threat intelligence into risk management decisions.

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Cybersecurity Controls

The largest domain — covers infrastructure management, access management, device/end-point security, secure coding, network segmentation, incident detection, and response capabilities.

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External Dependency Management

Third-party risk program, vendor due diligence, contract requirements, ongoing monitoring of critical service providers, and business continuity requirements for vendor relationships.

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Cyber Incident Management & Resilience

Incident response planning, testing and exercises, business continuity and disaster recovery, resilience planning, and regulatory notification procedures.

How Securafy Helps

Examination-Ready Financial Compliance

GLBA Information Security Program

We build, document, and maintain a complete Safeguards Rule-compliant information security program — including risk assessment, policies, controls inventory, and annual board reporting.

FFIEC CAT Assessment

We conduct a formal FFIEC CAT assessment across all five domains, score your current maturity, identify examination risk areas, and produce a roadmap to achieve target maturity levels before your exam.

Examiner Preparation

We prepare your team for OCC, FDIC, or NCUA examination — organizing documentation, preparing staff for examiner interviews, and ensuring every required policy and procedure is current and accessible.

MFA & Encryption Implementation

We implement MFA across all systems accessing customer information and configure encryption for data at rest and in transit — both explicitly required by the 2023 Safeguards Rule.

Third-Party Risk Management

We build and manage your vendor due diligence program — vendor questionnaires, contract reviews, annual reassessments, and a vendor risk registry that satisfies FFIEC examiner expectations.

Fractional CISO / Qualified Individual

Our vCISO service fulfills the GLBA requirement for a designated Qualified Individual — providing executive-level oversight, annual board reporting, and documented program governance.

Common Questions

GLBA / FFIEC FAQ

Does GLBA apply to non-bank financial companies?
Yes — the FTC Safeguards Rule applies broadly to "financial institutions" under the FTC's authority, including mortgage lenders, payday lenders, financial advisors, accountants, auto dealers offering financing, retailers offering credit, and tax preparation firms. Many Ohio businesses are surprised to learn they're subject to the Safeguards Rule.
What changed in the 2023 Safeguards Rule update?
The 2023 update made several requirements that were previously "reasonable measures" into explicit mandates: MFA, encryption of customer information in transit and at rest, penetration testing, vulnerability assessments, and incident response plans. Companies with 5,000+ customers must now have a designated CISO and report to the board annually.
How do examiners evaluate FFIEC CAT maturity?
Examiners look for consistency across your Inherent Risk Profile and Cybersecurity Maturity. If your risk profile is "Moderate" but your maturity is only "Baseline" in several domains, you'll receive MRAs. Most community banks should be at Evolving maturity across all domains. Documentation is critical — verbal commitments without written policies score at Baseline.
What's the difference between a GLBA audit and an FFIEC examination?
GLBA is enforced by the FTC for non-bank financial institutions through complaint-driven investigations and audits. FFIEC examinations are conducted by bank regulatory agencies (OCC, FDIC, Federal Reserve, NCUA) during routine safety and soundness exams for chartered depository institutions. Banks and credit unions face both frameworks simultaneously.

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Audit-ready?

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