The outsourcing of key banking jobs by UK-based Standard Chartered to India has come under the United States’ scanner. This is the second time that outsourcing of key jobs from global banks to India is under scanner for exposing America’s financial system to terrorists and money laundering risks. An earlier probe in recent times had revealed major lapses in the Indian section of HSBC staffing.

The Department of Financial Services, New York State’s chief banking regulator shows that the outsourcing to India has revealed deficient money laundering controls. StanChart has been accused of hiding secret transactions of an amount as much as $250 billion with Iran. The DFS has stated that this will leave the US financial system an easy prey to terrorists, arms dealers, drug lords and corrupt regimes.This comes at a time when there have been many allegations against the outsourcing of jobs to India and other countries in the US.

Even though the SCB had given assurances of all necessary steps in May 2010, it was discovered in a probe done in 2011 that anti-money laundering failures continued. SCB is alleged to have given its “entire OFAC compliance process for the New York branch to Chennai, India, with no evidence of any oversight or communication between the Chennai and the New York offices.” OFAC is the authorized agency from the US government that prepares a list of organizations with whom US citizens and agencies are barred from any further transactions.
 

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