Overview
This section establishes the government's legal obligation to safeguard sensitive Electronic Funds Transfer (EFT) data provided by contractors. It ensures that banking information used for contract payments is kept confidential and protected from unauthorized access or release.
Key Rules
- Mandatory Safeguarding: The government is strictly prohibited from the improper disclosure of a contractor's EFT information.
- Scope of Information: This protection applies to sensitive financial data, including bank account numbers, routing numbers, and financial institution details required for electronic payments.
- Government Accountability: The burden of protection lies with the federal agencies and personnel handling the data within payment systems (such as the System for Award Management, or SAM).
Practical Implications
- Contractors can provide necessary financial identifiers to the government with the assurance that this data is protected under federal regulation against disclosure to competitors or the public.
- Government agencies must implement internal controls and secure information technology systems to prevent data breaches or identity theft involving contractor financial records.