Country I am speaking about is India.... Please clarify your view now.
While our regulators don't require us to report client info to other governments, the onus is on clients to abide by regulations where they live. I tried searching online just now for info on this specifically in regards to India, but there seem to be conflicting views on the topic. If your friend has any concerns about this, it would be best for him to ask a legal expert in India. I can only tell you that our own policies allow us to accept applications from most countries in the world including India.