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Can I ensure that my company is compliant with expanding privacy protections in North Carolina? What are the requirements?

To ensure that your company is compliant with expanding privacy protections in North Carolina, you need to consider the following requirements:

State Privacy Act [2.1]

  • Any State or local government agency which requests an individual to disclose his social security account number shall inform that individual whether that disclosure is mandatory or voluntary, by what statutory or other authority such number is solicited, and what uses will be made of it.

Disclosure of financial records [1.5]

  • No financial institution or its officer, employee, or agent may disclose a customer’s financial record to a government authority except as provided in this Chapter.
  • Nothing in this Chapter shall prohibit a financial institution or its officer, employee, or agent from notifying a government authority that the financial institution or its officer, employee, or agent has information that may be relevant to a possible violation of law or regulation.

Service on customer certification [1.2]

  • A government authority may have access to a customer’s financial record pursuant to G.S. 53B-4(11) only if:
  • The court order or subpoena describes with reasonable specificity the financial record to which access is sought;
  • A copy of the court order or subpoena has been served on the customer pursuant to G.S. 1A-1, Rule 4 (j) of the N.C. Rules of Civil Procedure or by certified mail to the customer’s last known address and the court order or subpoena states the name of the government authority seeking access to the financial record and the purpose for which access is sought;
  • The following notice has been served on the customer pursuant to G.S. 1A-1, Rule 4 (j) of the N.C. Rules of Civil Procedure or by certified mail to the customer’s last known address together with the court order or subpoena: “Records or information held by the financial institution named in the attached process are being sought by government authority in accordance with the North Carolina Financial Privacy Act. You may have rights under the act to challenge access to the records or information. You must, however, act within 10 days from the date this notice was served on you to make a challenge in court or the records or information will be made available. You may wish to employ an attorney to represent you and protect your rights.”;
  • The customer has not challenged the court order or subpoena within 10 days after service by certified mail which is presumed to be received three days from mailing;
  • The government authority has certified in writing to the financial institution that it has complied with the applicable provisions of this Chapter.

Other requirements [3.2]

  • Each TPA or service company shall make available for inspection by the Commissioner copies of all contracts with persons using the services of the TPA.

To summarize, to ensure compliance with expanding privacy protections in North Carolina, your company needs to inform individuals whether the disclosure of their social security account number is mandatory or voluntary, not disclose a customer’s financial record to a government authority except as provided in the law, notify customers of any government request for their financial records, and make available for inspection copies of all contracts with persons using the services of the TPA.

Source(s):
Jurisdiction

North Carolina