Right to Financial Privacy Act

Posted By: Bec

Right to Financial Privacy Act - 08/24/10 08:41 PM

So I am doing this little work up for the bank newsletter about this act and am wondering how I can explain this exception:
Disclosure pursuant to Federal statute or rule promulgated thereunder
Nothing in this chapter shall authorize the withholding of financial records or information required to be reported in accordance with any Federal statute or rule promulgated thereunder

I get that we do need to have customer authorization when info is being sought after by the IRS puruent to Title 26. But what they heck does this one mean? Anyone got any way I can word this so even a newbie like me can understand it?
Posted By: Elwood P. Dowd

Re: Right to Financial Privacy Act - 08/24/10 10:28 PM

* If the bank is required by law to make a disclosure; e.g. file 1099INTs or CTRs, obviously the RFPA does not prevent that disclosure.

* The Internal Revenue Code has protections for taxpayer disclosures that are similar to those in the RFPA so the RFPA simply does not apply to IRS requests for customer information.
Posted By: Bec

Re: Right to Financial Privacy Act - 08/25/10 05:40 PM

Thank you...well explained!