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Consumer data in offshore centres could be at risk, says FSA

The FSA says some UK financial services firms with outsourcing centres based offshore have poor vetting procedures and could be placing customer data at risk of financial crime.

In its review of financial crime controls in offshore centres, the regulator identified the risk of data loss in an offshore environment as a key regulatory concern.

The FSA says a number of firms have inconsistent vetting procedures that do not apply to all staff. It says this increases the risk that firms may hire someone with a criminal background or a poor employment history.

The regulator says fake CVs, inconsistent references and uncooperative previous employers are common in India.

It also says high staff turnover rates increase the risk of criminal groups gaining access to sensitive consumer data.

The FSA also found that some firms allow staff access to more information than they need for their job and are slow to update access when staff change positions or leave the company.

The FSA says: “Local staff with financial crime responsibilities must be given proper financial crime training over and above their intimate knowledge of technical processes. Financial crime training in India needs to be better supported by financial crime teams in the UK.”

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