Offshore Outsourcing Considerations for Financial Institutions

Bloomberg Law Reports Banking & Finance

The article discusses outsourcing of the IT and business process functions for financial institutions. It explains how to minimize compliance and security risks while addressing regulatory impacts. The authors review regulations including the Bank Service Company Act, the Home Owner’s Loan Act, the Bank Secrecy Act, the Patriot Act, the Gramm-Leach-Bliley Act and Secure and Fair Enforcement Mortgage Licensing Act and how these laws apply to outsourcing operations of financial institutions. The article also addresses privacy concerns, intellectual property issues and choice of law decisions.