ARIZONA HOUSE OF REPRESENTATIVES Fifty-sixth Legislature First Regular Session
	House: COM DPA 10-0-0-0 | 3^rd Read 55-1-4-0 Senate: FIN DP 6-0-1-0 | 3^rd Read 19-11-0-0

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HB 2066: banks; financial institutions; personal information

Sponsor: Representative Carter, LD 15

Transmitted to the Governor

Overview

Requires banks and financial institutions to destroy a former customer's personal information.

History

All banks must keep their corporate and business records in accordance with the Deputy Director of the Department of Insurance and Financial Institutions' (DIFI) regulations. These regulations include: 1) the classification of records; 2) the establishment of allowable methods for effective and economical conservation of information contained in such records if the originals were destroyed in accordance with regulation; and 3) the prescribing of the minimal period of time for preservation of each record or a permitted substitute (A.R.S. § 6-242).

DIFI rules provide a retention schedule for certain bank records. Further, a bank may comply with a preemptive federal regulation, even if the regulation requires a shorter retention period (A.A.C. R20-4-214).

In accordance with the Bank Secrecy Act, banks are required to maintain various types of records for at least five years.  Records relating to the identity of a bank customer must be maintained for five years after the account is closed.

Provisions

1. Directs banks and financial institutions to destroy all personal information that belonged to a former customer or client within 10 years of ending the business relationship, unless an applicable law requires a retention period that exceeds 10 years. (Sec. 1)

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5.                   HB 2066

6. Initials PRB           Page 0 Transmitted

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