The outsourcing by both HSBC and Standard Chartered of key oversight jobs to India has come under the US scanner in separate probes related to issues like money laundering and terror financing.
Anonymous sources close to the development have said that the Indian financial sector authorities have started gathering all possible details about the two banks and any possible lapse in their compliance to regulations against money laundering and terror financing.
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Further, a senior official remarked that as part of this exercise, banking regulator RBI would approach FSA, with which it had recently signed a new Memorandum of Understanding (MoU) for exchange of information and co-operation in surveillance operations.
The official also added that at the next meeting of representatives of RBI and FSA, issues related to HSBC and Stanchart would be discussed, along with other supervisory developments and matters concerning various banks having operations in India and the UK.
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