Is there any prohibition regarding a Massachusetts state-charted bank from sharing deposit account information with subsidiaries or affiliates?

Some of the privacy policies that I've seen for Massachusetts banks specifically reference that deposit account information is not shared. My bank does the same thing as well.

In speaking to my bank's former compliance officer, it seems that the reason these banks do not share this information is the result of an interpretation of Section 16 of the Massachusetts electronic fund transfer laws (Chapter 167B).

http://www.mass.gov/legis/laws/mgl/167b-16.htm

I was told that even though it is under EFT, this prohibition has been generally extended to deposit accounts in general. If this is in fact true, my thought is that banks decide not to share all deposit account information just because it is not practical to determine which deposit accounts have EFT activity and which don't.

Has anyone else ever heard of this? Just curious. Thanks.

Very interesting. Never heard of it.