The Mekong Club Financial Services Working Group MODERN ......to their existing anti-money laundering (AML) protocols. But there is consensus that broader understanding of what to

The Mekong Club Financial Services Working Group

December 2016

MODERN SLAVERY A RESOURCE GUIDE FORTHE BANKING INDUSTRY

3 Foreword

4 MODERN SLAVERY UNDERSTANDING THE PROBLEM5 Background6 HearingVictimsrsquoVoicesTheCases8 ModernSlaveryAnOverviewoftheData11 WhatElementsCompriseSlaveryToday13 TermsDefinitionsandEmergingTrends16 GlobalImpactofAnti-ModernSlaveryEfforts17 BusinessRisk

18 MODERNSLAVERYANDTHEFINANCIALSERVICESSECTOR19 HowDidModernSlaveryBecomeanIssueforthePrivateSector19 TrendsRelatedtoModernSlaveryandthePrivateSector23 Modern Slavery and Manufacturing 23 ModernSlaveryandtheFinancialServicesSector37 DueDiligenceRelatedtoComplianceEnvironments40 RelationshipManagementamongBankingDepartments43 FacilitatingInternalCommunicationtoaddressMoneyLaunderingRelatedtoModernSlavery

44 Conclusions45 TheMekongClub46 References

A RESOURCE GUIDE FOR THE BANKING INDUSTRY

2The Mekong Club | Modern Slavery A Resource Guide for the Banking Industry

FOREWORDAsthemaingatewaythroughwhich70percentofmodernslaveryandtraffickingflowstheprivatesectorisinauniquepositiontoturnthetideinthefightagainstthisinsidiouscrimeAttheheartofmodern-dayslaveryisthearterialebbandflowofmoneymovinginwavesaroundtheworldAnnualprofitsfrommodern-dayslaveryareestimatedatUS$150billionandtheseproceedsareundoubtedlyfindingtheirwayintotheglobalfinancialsystem

BeingonthefrontlinesofthesystemthefinancialservicesindustryhasadistinctadvantageinbeingabletoidentifysuspiciousactivityWiththerighttrainingthissectorcanbeequippedtoidentifynewmoneylaunderingtrendsthatmaybelinkedtoslaveryandindoingsocanalsohelptooffsettherisktotheirownorganisationfromillegalandfraudulentbusinesses

RecognitionofmodernslaveryandhumantraffickingissuesinHongKongislowamongfinancialinstitutionsThestepsthatmostaretakingtoeradicateslaveryinvolvereferringtotheirexistinganti-moneylaundering(AML)protocolsButthereisconsensusthatbroaderunderstandingofwhattodotoaddresstheissueislacking

WeattheMekongClubhavebeenveryencouragedbythecommitmentandleadershipdemonstratedbythemembersofourFinancialServicesWorkingGroupaninterbankforumofkeycompanieswhomeetregularlytolearnsharebestpracticesandcollaboratetofindsolutionsthataimtoprovidetangibleresultsinthefightagainstmodernslaveryThesecompanieshaveidentifiedtheneedforthisguidewhichprovidesfurthertrainingonhowbanksinHongKongcanbetteraddressthemonetaryelementsofmodernslaveryandtrafficking

ThroughthispublicationwehopetoprovidefurtherinformationonthisissueWewillalsoprovideamoreformalizedapproachforfinancialinstitutionstoimplementmovingslaveryandtraffickinghigheruptheAMLagendaaswellasprovidingguidanceonthetypesofredflagindicatorsandquestionsfrontlinestaffcanbeaskingtoensureimpactfulswiftaction

WeencourageallfinancialinstitutionstousethisguideDoingsowillhelpimplementrealtangiblechangethatwillimpactmillionsoflivesforthebetter

~ The Mekong Club

The Mekong Club | Modern Slavery A Resource Guide for the Banking Industry 3

MODULE ONE

MODERN SLAVERY UNDERSTANDING

THE PROBLEM

BACKGROUNDEveryfoursecondssomeoneissoldintomodernslaverysomewhereintheworldEvery60secondsthecriminalindustrythatsupportsmodernslaverymakesmorethanUS$285000ThesestatisticscalculatedfromestimatesbytheInternationalLaborOrganization(ILO)1revealthesizeandinternationalscopeofmodernslaveryandtraffickingasystemthattreatshumanbeingsasacommodityThesecrimeshappeninurbanmetropolisesandinremoteruralareasindevelopinganddevelopednationsModernslaverytouchesnearlyeverysupplychainandnoindustryisexempt

ThesumsofmoneyinvolvedaresohighthislucrativeandgloballypervasiveindustryisoneofthefastestgrowingcriminalenterprisesandsitsbehindthedrugtradeasthemostprofitableorganisedcrimePertheUnitedNationsprofitsfrommodernslaveryandhumantraffickingareestimatedtobeashighasUS$150billionayearThissumisgeneratedthroughtheslaveryabuseandexploitationofanestimated458millionpeople2

AcrimethatreliesheavilyonaccesstofinancialinstitutionsawiderangeoforganisationsarenotonlydestinationsforslaveryandtraffickingproceedsbutalsoconduitstofinancingeverystepoftheslaveryandtraffickingjourneyRecognizingtheircentralimportancetoslaveryandtraffickingoperationsfinancialinstitutionsareseekingwaystostrikebackStoppingthearterialflowofmoneywillcausethebeastofmodern-dayslaverytoatrophyandshrinkalthoughnooneisundertheillusionthatitcaneverdisappearcompletelyThatrealitymustnotandshouldnotlessenoureffortstostaunchthesustenance(money)thatfeedsthebeast

HEARING VICTIMSrsquo VOICES THE CASES

Thebasiccharacteristicsofmodernslaveryinclude

Use of fraud or deception to trick a person into anexploitativelaboursituation

Useofdebtviolenceorthreatstoholdthepersoninplaceand

Lackofanypaymentinexchangeforservicesprovided

Inessence theperson loses control ofhisher lifeandisenslavedHumantraffickinggoesfarbeyondwomenandgirlswhoareforcedintoprostitutionMenwomenandchildrenarestolendeceivedorseducedintoopportunitiesthatdonotexistinsteadtheybecomeslavesOneofthebestways to quickly understand the complexityand sheer horror of modern slavery is tolistentotheirstories

FORCED LABOUR - FISHING BOAT CASE

ldquoI was only 16 years old when I was forced onto that fishing boat I was told that the job was easy and that Irsquod be paid a good wage But instead I

ended up working 18 hours a day every day For food we ate nothing but fish and rice twice a day If I got sick or injured I worked I had seen others who

had fallen ill and the captain simply threw them over the side of the boat I still remember their pleas for help as the ocean carried them away to their deaths I

was beaten if I didnrsquot work hard enough or even if I did Days often went by with only a few hours of sleep I was so tired sometimes I felt Irsquod go crazy To keep me

working they would force me to take powerful drugs that destroyed my body When I finally returned to port after four years at sea I was not given any pay The captain

told me that I was an illegal migrant so he didnrsquot have to give me anything Having no way to communicate with my family while I was away my mother and father assumed I

was dead Since they moved away I donrsquot know where to find themrdquo

Male Cambodian victim exploited in Thailand

FORCED LABOUR ndash SWEAT SHOP

ldquoWhen I was 16 years old I heard that many spinning mills in a big city in my region offered work My family was very poor and I wanted to help so I went there I didnrsquot know which one had work so I just chose one The man who managed the mill said I could have a job We negotiated a salary of US$50 a month He said that I had to live in the factory site There was no contract for me to sign but for me this was a huge amount of money so I accepted and started working immediately After working 18 hours a day for the first month I went to the employer and asked for my pay He smiled and laughed before saying ldquoI am sorry I forgot to mention to you that it costs me US$54 a month to keep you here and I am only paying you US$50 So you owe me money Until you pay it back you cannot leave this placerdquo With armed security guards barbed wire and high walls I couldnrsquot escape For three years I was not able to leave I could not contact my family The more I worked the more debt I owed With so much work with nothing in return my heart was filled with hopelessness and despair If that fire hadnrsquot brought the authorities I would never have been able to leave I lost three years of my life Gone stolen from me Something I can never get back againrdquo

Female Indian victim exploited in India

FORCED LABOUR ndash CONSTRUCTION

ldquoWhen I arrived at the construction site I was so excited The foreman told me that I could get a good job While he said he couldnrsquot pay me for the first three months I didnrsquot mind He seemed like a respectable person Every day I worked from 700 am to 700 pm The work was hard and dangerous but that was okay After three months I went to get my pay But the foreman told me that Irsquod have to wait another two months While I wasnrsquot happy what else could I do I borrowed more money from my friends and continued to work But each time I asked for my wages I was told the same answermdashnext month After 12 months passed I was desperate I was heavily in debt without any money When I had heard that there were others like me we all got together and as a group we approached the foreman This angered him greatly The next day a van pulled up and the police took us all away The foreman stood there and smiled It was he who called them there At that moment I could tell that he had never intended to pay any of us Two weeks later I was deported For an entire year I worked for nothing For an entire year I was a slaverdquo

Male Laotian victim exploited in Vietnam

GLOBAL OVERVIEW

AsyoucanseefromthestoriesabovethesituationsandlocalesmaychangebuttheissueremainsthesameapersonisturnedintoaslavethroughnofaultoftheirownItisalsonotjustaso-calledThirdWorldcrimeTheissueofmodernslaveryaffectsalmostallpartsoftheworldWhilemostpeoplethinkthatslaverywasabolishedhundredsofyearsagogloballythereareanestimated458million

MODERN SLAVERY AN OVERVIEW OF THE DATAmenwomenandchildrentrappedinthesesituations3ThismeanstherearemoreslavestodaythanthereareCanadiansInfacttherearemoreslavestodaythananyothertimeinhistoryThesevictimswhocanbefoundinfactoriesconstructionsiteswithinfisheriesandsexvenuesareforcedtoworkforlittleornopaydeprivedoftheirfreedomandoftensubjectedtounimaginablesufferingHiddenfromviewthiscrimerepresentsoneofthebiggesthumanrightsviolationsofourtimesbutfewpeopleknowaboutit

Figure 1 The Global Slavery Index 2016 Region AnalysisSource WalkFreeFoundation

THE AMERICAS

2168600

SUB-SAHARAN AFRICA

6245800

THE MIDDLE EAST AND NORTH AFRICA

2936800

RUSSIA AND EURASIA

2809700

ASIA PACIFIC

30435300

EUROPE

1243400

LOW HIGH

TOTAL NUMBER OF PEOPLE ENSLAVED PER REGION

SLAVERY BY COUNTRY

ModernslaveryisahiddencrimethataffectseverycountryintheworldWhilstithappensmorefrequentlyinpoorunregulatedcountriesnationswithahighGDPandrobustruleoflawarebynomeansimmunetothisplagueForexamplemanycasesofexploitationandlimitationoffreedomhavebeenreportedintheUSseafoodindustryandSouthernItalyrsquostomatopickingactivitiesandinvestigationshaveconcludedthatthenumberofslaveryvictimsisrisingintheUKeventhoughitisconsideredaleadingcountryintermsofanti-slaveryregulations

ThenumberofmodernslavesfoundfromcountrytocountryvariesgreatlywithsomecountrieshavinghighconcentrationswhileothershavefewForexample58percentofthoselivinginslaverycanbefoundinfivecountriesIndiaChinaPakistanBangladeshandUzbekistanLikewisesevenoutofthetencountrieswiththehighestnumberofvictimsareinAsiaresultinginover30millionslavesor66percent(IndiaChinaNorthKoreaBangladeshIndonesiaandPakistan)4WhyaretheresomanyvictimsacrossAsiaWith60percentoftheworldrsquospopulationmanycountriesinAsiahavehugepopulationsLikewisethroughoutAsiatherecontinuestoberemnantsofexploitativefeudalsystemsinplacethathaveneverbeendismantledndasheveninthismodernageInsomenationstheproportionofpeopleinslaveryisextremelyhighForexampleinNorthKoreaandUzbekistan4outofevery100peopleliveasslaves

Figure 2 The Global Slavery Index Country AnalysisSource WalkFreeFoundation

DR CONGO873100

PAKISTAN2134900

BANGLADESH1531300

CHINA3388400

INDONESIA736100

NIGERIA875500

RUSSIA1048500

INDIA18354700

NORTH KOREA1100000

UZBEKISTAN1236600

485 MILLIONPEOPLE TRAPPED INEXPLOITATIVE WORKINGAND LIVING CONDITIONS

Highest ratesPercent of population

NorthKorea 437

Uzbekistan 397Cambodia 165India 140Qatar 136

RATE OF SLAVERY

Eachyear92millionnewpeopleenterslaveryThismeansthatupto25500newvictimsperdaynearlya1050perhouroronenewslaveeveryfoursecondsOneminuteitmightbeafifteen-year-oldgirlforcedintoprostitutionayoungboyforcedontoafishingboattowork18hoursadayforyearswithoutcomingtoportorasweatshopworkerwhotoils17hoursadaywithoutadayofforanypay

BREAKDOWN BY AGE AND SECTOR

WhilemostpeoplethinkthatmodernslaveryfocusesprimarilyonwomenandgirlsbeingforcedintoprostitutionthisrepresentsonlyaboutaquarterofthetotalcasesTheremaining75percentfallundertheheadingofforcedlabour5Out of this figure about 60 percent of the victims are associated with manufacturing supply chains which begin with a grower or producer and end as a finished product purchased by consumers in the retail market ThusasconsumersweallsupportmodernslaverybecausetheproductswebuyareoftentaintedbythisexploitationTheagedistributionisapproximately24percentchildrenunder18yearsofageand76percentadults6

Oneofthekeyreasonsforthehighfiguresisthatglobalsupplychainsrelyonoutsourcingtheirproductionstagetocountriesthatofferlow-skilledlaborThislabourisusuallyman-intensiveandprovidedbymigrantworkersTheharshlivingconditionsinthepoorestareasoftheregionpushpeopletomigratetoseekbetterjobopportunitiesinricherneighboringcountriesThesemigrantworkersareoftentrickedbyexploiterswhotakeadvantageoftheirvulnerabilityTheyendupinbondedorforcedlaboursituationsinindustriessuchasfoodproductiongarmentsandtechnologyAbroaderanalysisofthisprocessisgiveninthefollowingsection

92 MILLION NEW SLAVES PER YEAR25500 NEW SLAVES PER DAY1050 NEW SLAVES PER HOURA NEW SLAVE EVERY 4 SECONDS

Figure 3 Forced Labour vs Forced Prostitution cases

Figure 4 Age Distribution of Slavery Victims

Forced Labour

Forced prostitution

24Adults

Children

NumerousfactorsandcharacteristicsmakeupmodernslaveryUnlikeyearsagowhenmenwomenandchildrenwereroundedupinAfricaandforcedontoboatswithchainsandshacklestodayrsquosslaveryhasacompletelydifferentdynamicBelowisasummaryofsomeoftherelevantfactors

FRAUD AND DECEPTION

ThemostcommonapproachtraffickersusetorecruitandsecurevictimsisfraudanddeceptionAbout90percentofthecasesfallintothiscategoryTraffickersgainapersonrsquostrustandlieaboutapossibleemploymentorlifeopportunityTheymightofferayoungvulnerablepersonwhofaceshardshipandpovertytheonethingthatseemscompletelyoutofreachabetterlifeaneasierlifeoralifethatwillnotonlybenefitthembuttheirentirefamilyTheyofferadreamwithlittleornothingaskedforinreturn

Whethersuchpromisesrelatetoagood-payingjoboragoodmarriagethemessagesarenearlyalwaysthesameldquoIfyoudowhatIsayifyoutrustmethenyourlifewillbeinfinitelybetterrdquoNotsometimeinthedistantfuturebutldquoTodayRightnowrdquoForthosewhoseldomhaveaccesstoanyoptionsatallsuchoffersare

tootemptingtopassupTheydonrsquotrealizethesefraudulentopportunitiescomewithaterriblepriceThusoneofthebiggestchallengestheanti-slaverysectorfacesishoweasilypeopleacceptsuchpromisesMosttraffickedpersonsaresimplynaiumlveTheywantsomuchtobelievethepromisedopportunityisrealthattheyputcommonsenseandlogicaside

DEBTCREDIT BONDAGE

InthissituationtraffickersenslaveandholdavictiminplacethroughoneoftwokeymechanismsinvolvingmoneydebtbondageorcreditbondageDebtbondageisasituationwhereadvancesincasharepaidfromthetraffickertothevictimherfamilyortootherswhichthevictimmustldquoworkoffrdquoWhetherthroughforcephysicalormentalabuseorsomeotherformofcoercionthevictimismaintainedattheexploitationsiteuntilthedebtissatisfactorilypaidManytimesthelenderusesfalseaccountingmethodsorchargesexcessiveinterestsometimesmorethan500percent7Thebondedlaborerwhomaynotspeakthelanguageormaybeuneducateddoesnotknowwhenthelenderwillconsiderthedebtpaidsothelengthofserviceisundefinedand

arbitrarySuchdebtsprovidetheexploiterwithjustificationformaintaininghisorhervictiminbondageCreditbondageisasituationwhereovertimethetraffickerdoesnotpaythevictimtheirwageThevictimremainsattheexploitationsiteinthehopeofrecoupingtheirearningsandminimizingtheirlossesThisprocessofwaitingcantakemonthsoryearsSadlymanyoftheseemployershavenointentionofeverpayingtheemployee

GettingapersonintoslaverythroughdebtisoftenveryeasyThescenariooftenlookssomethinglikethisTakeafamilythatearnsnomorethanUS$2perdayTheylivefromhandtomouthusingthislimitedmoneytocovertheirfoodandhousingOnedayafamilymemberbecomesveryillTosavehislifethefamilyneedsUS$20tobuymedicineSincetheyhavenomoneytooffertheyborrowthisamountfromahumantraffickerButsincetheywillneverearnmorethanUS$2perdaytheywillneverbeabletopaybackboththeloanandtheinterestTorecoverhisinvestmentthetraffickerwillinsistthatafamilymemberworkforadurationoftimetopaythisdebtWithexcessiveinterestthiscouldtakeayearormoreThisisacommonformofmodernslavery

WHAT ELEMENTS COMPRISE SLAVERY TODAY

DIRECT SELLING OF A PERSON

InsomecasesatraffickerdeliversapersontoanexploitationsiteandthenreceivesacashpaymentInessencevictimsaresoldtothebusinessForvictimstoregaintheirfreedomtheyareexpectedtoworkofftheamountofmoneythebusinessownerpaidfortheirpurchasealongwithadditionalfeesaddedtotheoriginalamountThisimpossibledebtholdsthepersoninplaceComparedtomanyyearsagoslavepriceshavegonedowninmoderntimesTheaveragepriceforaslaveinthemid-1800swasapproximatelyUS$40000(adjustedtocurrentvalues)TodaydependinguponthelocationaslavecanbeacquiredforaslittleasUS$1008

KIDNAPPING

WhilesomeslaveryvictimsareabductedthistacticisusedlessthanmostotherapproachesItismucheasiertotransportapersonwhoiswillingratherthantouseforcewiththosewhoarenotWhenpeoplecanbedeceivedintobelievingthattheywillbenefitfromgoingsomewheretransportingthemisamucheasiertaskForexamplecompliantvictimswillhelptraffickersevadeborderpoliceandcustomsofficialsThevictimswillbeunlikelytoattemptanescapeuntilitistoolateIncontrastkidnappingvictimstendtofightkickandscreamThispresentsobviousrisksfortraffickers

THREATS AND VIOLENCE

TraffickersviolatemanylawsandhumanrightsduringtheprocessofrecruitingtransportingharboringsellingandmaintainingthepersonThiscanincludetorturerapebeatingsthreatsofviolencethreatsofreprisalsagainstfamilymembersdeprivationoffoodandphysicalconfinementEachoftheseelementscontributestoplacingandmaintainingthepersoninaslave-likesituation

AVERAGE PRICE OF A SLAVE

In 1809(adjustedtotodayrsquosvalue) In2016

$40000 $100

Whilethemanufacturingworldhasspentmanyyearsaddressingtheissueofforced labour withintheirsupplychainsformanybanksthisisanewconceptBelowisadescriptionofthemostrelevanttermsdefinitionsandemergingtrendsusedbytheprivatesectortodescribethisissue

ThedefinitionusedbymostcompaniesincludesldquoAllworkorservicesextractedfromanypersonunderthemenaceofanypenaltyandforwhichthepersonhasnotofferedthemselvesvoluntarilyrdquo9Thisdefinitionplacestheemphasisonthenegativeconsequencesofleavingajobandthefactthatthepersonisforcedtoacceptworkagainsthisorherwill

Withinthepastfiveyearsthetopicofhuman traffickinghasbeencombinedwiththistraditionalconceptofforcedlabourtoexpandtherangeofdifferentpotentialscenariosHumantraffickingasaconceptincludesforcedlabourasanoutcomebutgoesfurtherbyplacingmuchoftheemphasisonhowapersongetsintotheforcedlaboursituationForexamplethetraffickingdefinitionfocusesonldquotheactofrecruitmenttransportationtransferharboringorreceiptbymeansofthreatuseofforceorcoercionabductionfrauddeceptionabuseofpowerandabuseofvulnerabilityrdquo10Thuswhathappensbeforetheexploitationbeginsisamajoremphasis

Since1926thedefinitionoftraditional slaveryhasremainedrelativelyunchangedSlaveryisdefinedasldquothestatusorconditionofapersonoverwhomanyorallofthepowersattachingtotherightofownershipareexercisedrdquo11Inthiscasetheemphasisisplacedontheownershipandlossofcontrolofpersonrsquoslife

InadditiontothesedistinctionstherearemorerefineddefinitionsthatfocusonvariationsofforcedlaborForexamplecontract slavery refers totheuseoffalse or decepte contractsthatguaranteesemploymentInthiscaseapersonsignsacontractinalanguagetheycannotreadorthatisnotexplainedtothemDespitetheillegalityofthisprocesstheworkeristhreatenediftheytrytoleaveorbreakthisfraudulentcontractWithbonded labourapersonbecomesthepropertyofanotherpersontoworkforthemascollateralagainstaloanthatwasmadeThesedebtsareoftenenforcedbythethreatoruseofphysicalviolenceagainstthevictimandorhisfamilynetwork

Beginningin2014ldquomodern slaveryrdquohasemergedasanumbrellatermtoincludenearlyallthedefinitionslistedabovewithinonecombinedheadingTheadjectivemodernisofferedtoidentifyslaveryasa

crimewhoseimplicationshavenotchangedbutsomeofitsfeatureshaveadaptedtomoderntimesAlsothisterminologychoicefollowsthestepsofoneoftheleadingpiecesoflegislationinthefieldtheUKModernSlaveryAct12ThetermldquomodernslaveryrdquomaysoundharshtothosenewtothistopicbutmanynowfeelthatthisistherightcombinationofwordstodescribetheobnoxioussituationsvictimsareforcedtoendureModernslaveryisemergingasthenewparadigmofourtime

Inthesectionbelowmoredetailswillbeprovidedtoclarifyandexpandthemeaningofthevarioustermscommonlyandbroadlyusedintheanti-slaveryfieldThenecessityforusalltounderstandeachdefinitionisasfollows

Clarifyingwhichsituationsatermreferstohelpsusbetterunderstandaphenomenonthatisquitecomplexandisthefirstnecessarysteptowardaction

Narrowingdownaproblembydefiningithelpsintargetingactionand

Cleardefinitionsarenecessaryforquantifyingaproblemtoallowforchangetobemeasured

TERMS DEFINITIONS AND EMERGING TRENDS

To better understand the differences between the various terms here is a more detailed summary

DEFINITION DESCRIPTION

TRADITIONAL SLAVERY

Theinternationallyaccepteddefinitionofslaverywasoutlinedinthe1926SlaveryConventionwhichstatesthatldquoSlaveryisthestatusorconditionofapersonoverwhomanyorallofthepowersattachingtotherightofownershipareexercisedrdquo13NotethatthisdefinitionequatesldquoslaveryrdquowiththeldquoowningrdquoofapersonAccordingtotheBellagio-HarvardGuidelinesontheLegalParametersofSlaveryldquoTheexerciseoflsquothepowersattachingtotherightofownershiprsquoshouldbeunderstoodasconstitutingcontroloverapersoninsuchawayastosignificantlydeprivethatpersonofhisorherindividuallibertywiththeintentofexploitationthroughtheusemanagementprofittransferordisposalofthatpersonrdquo14

CONTRACT SLAVERY

TheworkerpaysahighfeeoftentoarecruitmentagencytofindworkforthemAdeceptivecontractisofferedthatguaranteesemploymentperhapsinafactoryorservicesettingThevictimsignsacontractinalanguagetheycannotreadorasanilliteratepersontheyareforcedtosignacontractthatisnotexplainedtothemIfthejobisinanothercountryaprospectiveworkeroftenpaysafullrangeofexpensesrelatedtotheacquisitionofapassportandothertraveldocumentstransportationandtrainingcostsThepromiseofferedinthiscaseisthatheorshewillearnenoughmoneytopaythesefeesbackoverarelativelyshorttimeWhathappensinsteadisthatthepersonarrivesatthenewworkplaceonlytofaceenslavementandconditionswhicharemuchlessthanexpectedTravelandidentificationdocumentsaretakenawayandthepersonisforcedtopayexorbitantamountsforsubstandardhousingandfoodAconstantthreatofviolencepreventsthepersonfromleavingorlookingforsupport

BONDED LABOUR

ApersonbecomesthepropertyofanotherpersontoworkforthemascollateralagainstaloanthatwasmadeThesedebtsareoftenenforcedbythethreatoruseofphysicalviolenceagainstthevictimandorhisfamilynetworkInmanycasesthelenderusesfalseaccountingmethodsorchargesexcessiveinterestovertimeThusthebondedlabourerdoesnotknowwhenthedebtwill(ifever)bepaidoffmakingthelengthofserviceundefinedInsomecasesthisloanispasseddownfromonegenerationtoanother

CLASSICAL SLAVERY (CHATTEL)

ApersonisbornorsoldintoalifeofpermanentservitudeThisformofslaverywhichhasbeenoutlawedinmuchoftheworldcontinuestodayinpartsofSub-SaharanAfricaincludingMauritaniaNigerandSudan

HUMAN TRAFFICKING

TheinternationalaccepteddefinitionofhumantraffickingisprovidedintheUnitedNationsrsquoPalermoProtocolwhichstateslsquoTraffickinginpersonsshallmeantherecruitmenttransportationtransferharboringorreceiptofpersonsbymeansofthethreatofuseofforceorotherformsofcoercionofabductionoffraudofdeceptionoftheabuseofpowerorofapositionofvulnerabilityorofgivingorreceivingofpaymentsorbenefitstoachievetheconsentofapersonhavingcontroloveranotherpersonforthepurposeofexploitationExploitationshallincludeataminimumtheexploitationoftheprostitutionofothersorotherformsofsexualexploitationforcedlabourorservicesslaveryorpracticessimilartoslaveryservitudeortheremovalfororgansrsquo15

TherearealsootherdefinitionsbelongingtothebroaderconceptofldquomodernslaveryrdquosuchasforcedprostitutiondomesticservitudeforcedmarriageetcSomeofthesecasesarerelatedtothetermsclarifiedaboveForexampledomesticservitudeisanexampleofforcedlabourandforcedprostitutioncanbearesultofhumantrafficking

OfallthedefinitionstheonethathasreceivedthemostattentioninrecentyearsisldquohumantraffickingrdquoHumantraffickingasaconcepthasbeenandcontinuestobeverypoliticallychargedOverthepast20yearsithasbecomeatopicthathasreceivedagreatdealofattentioninthemediaamongthegeneralpublicandacrossgovernmentsWhilemuchofthisattentioncanbeattributedtoforcedprostitutionwhichisconsideredbymosttobeamajorethicalandmoralissueovertimetherelevancetoforcedlaboursituationshasalsocontinuedtogrowOneofthereasonswhyhumantraffickingasadefiningconceptisbeingreplacedwithldquomodernslaveryrdquoisthatthisdefinitionplacesmuchoftheemphasisonhowapersonmovesfromtheircommunityintotheslave-likeoutcomewithoutfocusingontheend-pointitselfThisemphasisontheldquomovementrdquoofapersonisconsideredlessrelevantManywouldarguethattheldquooutcomerdquoofthisprocessismoreimportantHencemodernslaveryisconsideredthemoreappropriatetermToillustratethispointnotethattwoofthethreecomponentsofthehumantraffickingdefinitiondealwiththeprocessbywhichapersonbecomestraffickedndashtheactandthemeansbywhichthishappens

ItisimportanttonotethatnotallexploitationisconsideredhumantraffickingorslaveryWhileaworkermaybeinasituationwhereheisbeingcheatedoutofovertimepaypaidlessthanisowedhimormadetoworkexcessivehoursthiswouldnotconstituteahumantraffickingslaverycaseaslongasheisfreetoleavethissituationTofurtherclarifythispointtherearetwobasiccharacteristicsofmodernslaverythatmustbeinplace

1 Deceptioninpaymentagreementssuchaswithholdingofwages(orcompletelackofpayment)anduseofdebtorotherformsofbondageareinplaceand

2 Restrictionofmovementbyretentionofdocumentsviolenceandorthreatsholdsapersoninplace

Figure 5 The Defining Elements of Human Trafficking According to the Palermo Protocol

Figure 6 Modern Slavery Markers

SLAVERYMARKERS

WithholdingWages

DebtandotherformsofBondage

RetentionofIdentity

Documents

RestrictedMovement

PhysicalandSexual

Violence

ThreatstoSelforFamily

i THE ACT OF

Recruitment Transportation Transfer Harboring Receipt

ii BY MEANS OF

Threat Useofforce Coercion Abduction Deception Debt bondage

iii FOR THE PURPOSE OF

EXPLOITATION

Exploitation is brought about by the involvement of a third party

For children under age 18 it is not necessary to demonstrate threat use of force coercion or other means to identify a trafficking case it is sufficient to demonstrate

(1) the act of moving a child (2) for the purpose of exploitation The Mekong Club | Modern Slavery A Resource Guide for the Banking Industry 15

VICTIMS RESCUED AND HELPED

Afternearly20yearsofdonor-fundingavailableformajoranti-slaverytraffickingeffortsaroundtheworldtwoindicatorsarenowbeingtrackedonanannualbasisTheinformationinFigure7providesasummaryofthenumberofslaveryvictimsidentifiedandsupportedin201516ThethinredlinerepresentsthenumberofpeoplehelpedWithalloftheNGOsUnitedNationsandgovernmenteffortscombinedtheworldonlyhelped02percentofpeopleinslavery

PROSECUTIONS AND CONVICTIONS

TheinformationinFigure8providesasummaryofthenumberofglobalprosecutionsandconvictionsbyyear17Notethatrelativetothenumberofhumanslavesthroughouttheworld(estimatedtobe45800000)thenumbersofprosecutionsandconvictionsareextremelylow

Whenlookingatthefiguresforprosecutionandvictimassistanceonemightquestiontheefficacyofthecurrentanti-slaveryresponseWhyarethenumberssolowrelativetothenumberofslavesAretherespondersnotdoingtheirjobsAretheinterventionsnotfocusedenoughTherearefourmajorreasonscitedforthelowresults

Excessive Profits AccordingtotheInternationalLaborOrganization(ILO)theprofitsgeneratedfromthisillicittradeareestimatedtoexceedUS$150billionannually18 ButdespitethesizeoftheproblemannualglobaldonorcontributionsadduptoonlyaroundUS$350million19whichrepresentslessthanonepercentoftotalprofitsgeneratedbythecriminals(023percent)ItisnotsurprisingthatthenumberoftraffickedpersonscontinuestoincreaseRealizingthatwearenotmakingasignificantdifferenceinthisfightitisclearsomethingneedstochange

Limited Number of RespondersItisestimatedthatthereareapproximately15000peoplewithinNGOUNandgovernmentofficesaddressingthisissueThenumberofcriminalsisestimatedtobeover50000020 Thenumberldquogreed-incentivizedrdquocriminalsisover30timesmorethanthenumberofpeoplefightingtheproblem

Hidden Nature of the IssueBecauseoftheclandestinenatureofmodernslaveryitisnotalwayseasytofindthevictimsUnlesstherespondersaretrainedtolocatethemtheywillnotbefound

Supply Chain Transparency LawUpuntilrecentlyfewcorporationshavelookedbelowthefirsttierwithintheirsupplychains

GLOBAL IMPACT OF ANTI-MODERN SLAVERY EFFORTSInthepasttherewasnoincentivetodosoWithnewlegislationinplacethatexpectscompaniestohaveaclearindepthunderstandingoftheiroverallsupplychainmanycompaniesaredoingwhattheycantobeincomplianceThisisnotpossibleformostorganisationsatthistimeThereforemodernslaverymightexistbutitisnrsquotbeingdetected

Figure 8 Prosecutions and Convictions

Figure 7 Victims rescued annually

Globalslavefigure

Victimsrescued(02)

Prosecutions Convictions

998ONLY 78000 PEOPLE HELPED OUT OF 458 MILLION

2008 2009 2010 2011 2012 2013 2014 2015

ONLY 4000 OUT OF 500000 CRIMINALS CONVICTED (08 percent)

BUSINESS RISKGlobalnormsonwhoisresponsibleformodernslaveryviolationsareshiftingThenotionthatacompanysharesresponsibilityforthetransgressionsofitssuppliershasbeenacceptedfordecadesButasexpressedintheoverarching2011GuidingPrinciplesonBusinessandHumanRights21momentumisnowbuildingbehindtheideathatallformsofbusinessrelationshipsgeneratehumanrightsresponsibilityAddressinghumanrightsresponsibilityisstillmorevoluntarythanmandatorybutnotformuchlongerwherenormsleadlawsandregulationseventuallyfollowBanksshouldprepareforafutureofobligatoryhumanrightsduediligence

IntheUKthepassingoftheModernSlaveryActpromptedtheinclusionofslaveryandtraffickinginthefirstlsquonationalriskassessmentrsquoandlsquoactionplanrsquoforanti-moneylaunderingandcombatingthefinancingofterrorism(AMLCFT)21Industry-specificregulationswillbethenextstep

MODULE TWO

MODERN SLAVERY AND

THE FINANCIAL SERVICES SECTOR

Thetopicofmoderndayslaverywasconsideredapublic-sectorissueuntil2012GovernmentsNGOsandtheUnitedNationsaddressedtheproblemwithlimitedinvolvementoftheprivatesectorOvertimehoweveramajorshifthastakenplacethathasbroughttheprivatesectorintotheresponseTherearethreesignificantfactorsthathavecontributedtothisemergingtrend

Firstwith75percentoftheslavesinforcedlabourconditionsand60percentofthemassociatedwithmanufacturingsupplychainsitbecameevidentthattheprivatesectorhadaroletoplayWithmanufacturingbeingbasedonsupplychainsthiswasalogicalconclusionSecondovermorethanadecadetheinternationalhumantraffickingcommunityhadnotcomeclosetomeetingitsfullpotentialAccordingtothe2016TraffickinginPersonsReportonly78000oftheglobalslaveswererescuedin2015Thismeansthatlessthan02percentofthevictimswerebeingidentifiedandassistedeachyearUnderstandingthelimitationsofthepublicsectoritwasfeltthattheprivatesectorcouldhelpopenanewfrontinthefightFinallyaccordingtotheUNtheprofitsgeneratedfromthisillicittradeareestimatedtoexceedUS$150billionannuallyIfanyofthisillegalmoneymakesitswayintoalegitimatebankitisconsideredmoneylaunderingThismadetheissuerelevanttobankswhohadtoprotecttheirbusiness

Basedonthefactorslistedabovefourtrendshaveemergedsince2012Belowisasummaryofeachofthesetrends

1 INCREASED MODERN SLAVERY LEGISLATION

LegislationrelatedtomodernslaveryhasincreasedTheCaliforniaTransparencyinSupplyChainsAct(2012)23 and theUKModernSlaveryAct(2015)24weretwoofseveralimportantActsputinplacethatrequirecompaniestoreportwhattheyaredoingtoaddresstheissueofmodernslaveryThepurposeofthislegislationistopreventmodernslaveryinorganisationsandtheirsupplychainsbyincreasingtransparencyInthenearfuturelegislationthatofferspenaltiesandfinesmaysoonfollowOnthenextpageisasummaryofthesetwomajorlegislativeActs

HOW DID MODERN SLAVERY BECOME AN ISSUE FOR THE PRIVATE SECTOR

TRENDS RELATED TO MODERN SLAVERY AND THE PRIVATE SECTOR

CALIFORNIA TRANSPARENCY IN SUPPLY CHAINS ACT UK MODERN SLAVERY ACT SECTION 54 lsquoTRANSPARENCY IN SUPPLY CHAINSrsquo

INITIATED January 2012 October 2015

WHO IS AFFECTED

Retailersandmanufacturerswithannualworldwidegrossreceiptsthatexceed$100millionwhodobusinessinthestateofCalifornia

AnycommercialorganisationinanysectorwhichsuppliesgoodsorservicesandcarriesonabusinessorpartofabusinessintheUKandisabove36millionGBPannualturnover

ACTION Companiesmustdisclosetheireffortstoeradicateslaveryandhumantraffickingfromdirectsupplychains

CompaniesmustproduceaslaveryandhumantraffickingstatementforeachfinancialyearoftheorganisationsignedbyaDirectororhigherexecutivestatingthestepstheorganizationhastakentoensurethatslaveryandhumantraffickingisnottakingplaceinanyofitssupplychainsandinanypartofitsownbusiness

PURPOSE Topushcompaniestoenhancedtransparency Toeducateconsumersonhowtopurchasegoodsproducedbycompaniesthatresponsiblymanagetheirsupplychains

Todevelopanappropriateandeffectiveresponsetomodernslaverybyencouragingbusinessestobetransparentaboutwhattheyaredoingthusincreasingcompetitiontodriveupstandards

Toenhancepublicscrutinyofcompaniesrsquopoliciesonmodernslavery

PENALTY TheCaliforniaAttorneyGeneralhasexclusiveauthoritytoenforcetheActbyfilingacivilsuittoforceacompanytofixitsdisclosures

IfabusinessfailstocomplywiththeprovisionrsquosrequirementsthesecretaryofstatemayseekaninjunctionthroughtheHighCourtrequiringtheorganisationtocomplyIftheorganisationfailstocomplywiththeinjunctiontheywillbeincontemptofacourtorderwhichispunishablebyanunlimitedfine

KEY POINTS Businessessharesomeresponsibilityforthewholeoftheirsupplychainsnotjustthepartsthattheycanreadilysee

Theincreasedinterestinsupplychainsisnotrestrictedtothelaboursector

TheorganisationdoesnothavetoguaranteethattheentiresupplychainisslaveryfreeInsteadanorganisationmustsetoutthestepsithastakeninrelationtoanypartofthesupplychain

CONSEQUENCES ArecentseriesofclassactionsfiledinCaliforniafederalcourtsaccusedmajorretailersofviolationsoftheActbecause-contrarytothedisclosurestatementsontheirwebsitesndashactorsintheirsupplychainsuseslavelabourorotherwiseviolatecompanystandardsforitssuppliers

Throughlabour-relatedinitiativestheUKgovernmenthasgivenlawenforcementmorepowerwhendealingwithemployerswhosubjugatetheirworkerstoslavery

Statementsissuedbycompaniesarebeingpubliclyscrutinised

2 CLASS ACTION LAWSUITS

Thereareanumberofclass-actionlawsuitsbeingfiledagainstmajorcompaniesThesebusinessesarebeingaccusedofsupportingslaveryconditionsinthefisheriesandcocoaindustriesTheobjectivesofthelawsuitsaretoforcethesecompaniestousetheirleveragetoeliminatetheproblem

LAW SUITS THAI SEAFOOD SUPPLIERS

SeveralclassactionlawsuitsinvolvingseafoodwerefiledagainstfoodgiantslastyearTonameafew

NestleSAwassuedoverclaimsthatitsFancyFeastcatfoodcontainsfishfromaThaisupplierthatusedslavelabourThesuitallegesthatNestleissourcingcannedpetfoodfromThaiUnionsubsidiariesndashwhichinturnreceivedfishlikelycaughtusingforcedlaborAccordingtothecomplaintNestlersquosThaisuppliergetsitsfishfromtrawlerswhosecrewsareoftenmenandboyswhohavebeentraffickedfromMyanmarandCambodiaTheyaresoldasslavesbybrokersandsmugglerstofishingcaptainsinThaiportsandfrequentlyresoldoutatseaSimilarlyMarsIncwassuedoverclaimsthatitfailedtodisclosethattheoverseasproductionofIamscatfoodinvolvedslavelabourpracticesandthatitsourcedfishforitspetfoodfromthesamesupplierasNestlersquos

TheUSretailchainCostcoanditsThaiseafoodsupplierweresuedoverclaimsallegingthatCostcoknowinglysoldprawnsthatwerefedwithfishmealsourcedfromslaveboatsTheinvestigationestablishedthatlargenumbersofmenwhowereboughtandsoldandheldagainsttheirwillonfishingboatsoffThailandwereintegraltotheproductionoffarmedprawns(commonlycalledshrimpintheUS)soldinleadingsupermarketsaroundtheworldincludingthetopfourglobalretailersWalmartCarrefourCostcoandTesco

TheconsumerswhofiledthecasessoughttorepresentallbuyerswhowouldnrsquothaveboughttheproducthadtheyknownthatitwaspartofasupplychaintaintedwithslavelaborThecaseswerebroughttocourtinCaliforniawhereslaveryisacrimebylawandenhanceddisclosurehasbeenpushedforwardbythe2012CaliforniaActonTransparencyinSupplyChains

3 INCREASED MEDIA COVERAGE OF THE TOPIC

MediainterestrelatedtothistopichassignificantlyincreasedoverthepastthreeyearswithmajorTVprintstoriesandarticlesnearlydoublingannuallyInfactenvironmentalcoverageappearstobegoingdownwhiletheslaverycoverageisincreasing

4 INCREASED ldquoNAMING AND SHAMINGrdquo

WithsupplychainlabourconditionsemergingasanimportantissuefacingglobalcompaniesthenumberofmasssocialawarenesscampaignsandinvestigativejournalistreportshavesignificantlyincreasedThetargetsoftheseinitiativesincludearangeofdifferentmanufacturersandgrowersincludingapparelfootwearelectronicsfisheriesfoodpackagingandagricultureThepurposeoftheseeffortsistoldquonameandshamerdquoacompanyintotakingactiontocorrectaperceivedinjusticeorinadequacyagainstworkersThepotentialoutcomeofthisprocessmayincludebadpresspublicprotests(usingonlinepetitionservicesFacebookTwitteretc)lossofconsumertrustreductioninsaleslossoftradepartnersboycottspotentiallawsuitsandclassactionsuitsanddropinsharevalue

WhileldquonamingandshamingrdquocanbeapowerfultooltoswayconsumeropiniontheinformationusedisnotalwaysbasedonaccurateorreliabledataForinstancethereareexamplesofcompanieswhowereattackedwithnofoundationtosupportthereportedaccusationsLikewisesomecampaignsonlytargetthelargestcompaniestogaingreaterpublicityfortheircauseInotherwordstheselectionprocessisnotrandomornecessarilybasedonwheretherealproblemislocated

TherationaleforldquonamingandshamingrdquoissimpleTheuseofexploitativeandforcedlabourisonlyprofitabletotheextentthattheproductsproducedbythislabourcanbesoldRemovethemarketforgoodsproducedbyforcedlabourandthereisnoincentiveforitsuseInrecognitionofthistheUSandUKgovernmentshavetakenaleadintargetingexploitativepracticesinthesupplychainsofmajorcompaniesthroughnewlegislationWhilethereisverylittleargumentastothevalueoftargetingsupplychainsthereisroomfordiscussionastohowthisisbestdoneldquoNamingandshamingrdquoisoneapproachndashtherearemanyothers

MODERN SLAVERY AND MANUFACTURING AllofthegoodsweuseconsumeorweareverydayhavebeenthroughaproductionpackaginganddistributionprocessthatbeginswithagrowerorproducerandendsasafinishedproductpurchasedbyconsumersintheretailmarketThisprocessisknownasaldquosupplychainrdquo

Ascompaniesattempttocutpricestobettercompeteforever-shrinkingmarketstheyareunderpressuretokeeptheirproductioncostslowBecauselabourcostsareoftenasignificantportionoftheproductcostreducingthesecostsmaybeachievedbysub-contractingwithmanufacturingcompaniesandorindependentoperationsinlocationswherelabourpricesarelowItrsquosatthispointwhereslaverycanenterthesupplychaintoreapthehighestprofitsunscrupulousemployerstakeadvantageofthesesub-contractorsandexploitworkersinlocationswherelabourstandardsarelowornon-existent

AsaresultofthesepracticesitispossibleforslaverytoinfiltratethesupplychainsofmanyofoureverydayproductsButbecausesupplychainsaresocomplicatedandinvolvemanylevelsandstagesitcanbeverydifficulttotracetheexactpointsinthesupplychainwhereslaveryexistsCompaniescomplainthattheirfactoriesareregularlyinspectedbutinspectorsrarelycheckworksub-contractedtoout-workersinsmallerbusinessesToputtheissueintoperspectivecasesofslavelabourhavebeenextensivelydocumentedintheproductionofcottonsugarcocoabeeftimbertomatoesshrimpfishproductssteelgolddiamondsshoesclothingfireworkscarpetsbricksandelectronicsamongothers

MODERN SLAVERY AND THE FINANCIAL SERVICES SECTOR TheextentoftheexposuretorisksassociatedwithmodernslaveryvariesacrossbusinessesCertainbusinessesareatahigherriskofbeingusedwithorwithouttheirknowledgeformodernslaverypurposesForexamplebusinessescanbeatriskbasedonthefollowingfactorsthenatureofthebusinessthedepthandextentofsupplychainswithinlocationsthatalreadyhaveahistoryofforcedlaborandthedegreeofinvolvementwithorganisedcrime

AccordingtotheILOslaveryearnsprofitsofroughlyUS$150billionayear25 for traffickersThefollowingisabreakdownofprofitsbysector

Becauseofthemagnitudeofthisamountofmoneybeingacquiredfromthiscriminalactivitythefinancialservicesindustrymustconsiderthisapotentialrisktotheirbusinesses

Figure 9 Profits of Modern Slavery (US$)

Forcedprostitution

Constructionampmanufacturing

Agriculture(9bln)

Domesticservitude(8bln)99 bln

34 bln

1 Logistics businesses which can be exploited by human traffickers as intermediaries for trafficking purposes

Travelagencies Coachstationsand Transportationandhaulage

2 Labour intensive businesses users of cheap unqualified andor seasonal labour

Labourcontractorssuchasforcaretakerservices Farmsandagriculture Fishingandshellfishatanypointoftheprocessof

gathering Foodindustriesfoodprocessingandpackaging Textilemanufacturers Mining Buildingandconstruction ldquoInvisiblesectorsrdquosuchasdomesticwork

3 Hospitality entertainment services and retail trade

Hotelsrestaurantsandcafes Beautyandmassagesalons Consumerservices Cleaningandotherdomesticworknursingandcareworkand Retailanddistribution

Whilstthesebusinessescanharbouranddeploymodernslaveryunwittinglyorotherwisesomecanalsobeusedasmoneylaunderingfrontsfororganisedcrimeactivities

Someoftheabove-mentionedbusinessesarecharacterizedbyintensivelabouruseandhaveahighstaffturnoverTofillgapsbusinessesmayresorttousingtemporarypersonnelwithoutproperlycheckingidentitydocumentswiththelabourintermediaryInsuchcasesthebusinessownerormanagerwouldtypicallypayanintermediaryratherthanpayingthepersonneldirectlyBusinessessuchasconstructioncompanieshotelsandsupermarketshavelengthysupplyandsub-contractingchainsThesecaninvolverecruitmentagentswhoseactivitiesmaybepoorlymonitoredThustheriskofmodernslaverybeingusedwithinthechainincreases

FinanceAgainstTraffickingrsquosldquoSuspiciousFinancialActivityandHumanTraffickingrdquomanual26identifiedanumberofsectorsparticularlyatriskwhenitcomestoslaveryandtraffickingThefollowingtwosectionshavebeentakenfromthisreportandaddressthesesectors

CertaintypesofbusinessarevulnerableandatriskofhavingmodernslaverywithintheirsupplychainThisalsoexposesthemtomoneylaunderingrisksForexampleanotherwiselegitimaterestaurantbusinessthatusesorprofitsfromslavelabouriscommittingacrimeTheprincipalsofthebusinessanditsaccountantscanpotentiallybechargedwithmoneylaunderingforinterminglinglegitimateproceedswiththeproceedsfromcrimeBusinesseswithahighriskofexposurecanbedividedintoseveralcategoriesincluding

VULNERABLE SECTORS

dealingwithcashareexposedtohigherlevelsofriskfromhumantraffickingincludingmoneyserviceandremittancebusinessesretailbranchbankingcreditcardcompaniescashcouriersdealersinhighvaluegoodsandcasinos

MoneyServiceBusinessesandinstitutionsofferingretailbankingoftenmustdealwithlargenumbersofsmallmoneytransfersthemajorityofwhicharelegitimateTodetectthiscrimetheyneedtoapplyappropriateriskprofilingalongwiththemostreadilyusedredflagindicatorsbalancedagainstavailableresourcesandsystemconstraintsThistopicwillbediscussedinmoredetailbelow

Institutions that provide services to businesses that use trafficked labour or have trafficked labour within their supply chains

FinancialservicesinstitutionsneedtobeparticularlyvigilantforsignsofmodernslaverywhendealingwithanyofthepreviouslylistedbusinesssectorsForinstanceaninvestmentbankthatconsidersprovidingfinancingtoanagriculturalcompanywouldneedtoensurethatwhenitcarriesoutduediligenceprocessesonthetargetcompanyitincludesinvestigatingthecompanyrsquosemploymentpracticesandwhetheritisknowntohaveanyissuesrelated

LEVELS OF VULNERABILITY

AccordingtoFinanceAgainstTraffickingrsquosSuspiciousFinancialActivityandHumanTraffickingReportthefinancialservicesindustryisexposedtotheriskofbeingusedasaconduitforcrimeproceedsattwolevels1)bythoseinvolvedinmodernslaveryforlaunderingtheproceedsofthiscrimeand2)byprovidingservicestobusinessesthatusemodernslaverywithintheirsupplychains(possiblyunwittingly)

Direct use by those involved in trafficking

WhenmodernslaverytakesplaceacrossborderstraffickersusefinancialsystemstosendcriminalproceedsbacktotheircountriesoforiginHumantraffickingisprimarilyacash-basedillegalactivityWhilemuchoftheirprofitisdistributedwithintheirorganisedcrimegroupinsmallamountsfordailyexpensessuchasfoodandentertainmentwhichdoesnotrequiretheuseofmoneylaunderingtechniquessomewillusethefinancialsystemtosendmoneytotheircountryoforigin

CertaintypesofbusinesseswithinthefinancialservicesindustryareatgreaterriskofbeingdirectlyusedbytraffickersasaconduitfortheircrimeproceedsParticularlyfinancialservicebusinesses

EMERGING RESPONSE USED BY THE FINANCIAL SERVICES SECTOR

Thefinancialservicessectorusessevenapproachestoprotecttheirbusinessesfromthethreatofmoneylaunderingpresentwithinmodernslaveryincluding

1 UsingTypologiestoUnderstandtheCrime

2 UsingForensicAccountingtoIdentifytheCrimes

3 WorkingwithNGOstoCollectData4 ForgingPartnershipswithLaw

Enforcement5 CreatingandUsingBigDataFilters6 UsingCriminalDatabasestoScreen

Clientsand7 IdentifyingandUsingldquoRedFlagsrdquo

Onthefollowingpagesisasummaryofeachapproachinmoredetail

tothistopicWhilethiskindofscreeningisroutinefordetectingotherformsofmoneylaunderingforcedlabourandmodernslaveryisacompletelynewcategoryWiththisinmindnewprocessesandproceduresarebeingdevelopedwithinthefinancialservicesindustrytoasktherightquestionstodetectmodernslaverycasesamongpotentialclients

1 Using Typologies to Understand the Crime

ThepurposeofusingtypologiesisthatitallowscriminalbehaviortobesortedaccordingtodistinguishingtraitsorformsofbehaviourthatarepresumedtocharacterizethemasacommonsocialprocessThisapproachhelpsidentifytrendsandpatternsthatcanhighlightpotentialcriminalbehaviourndashinthiscasemoneylaunderingrelatedtomodernslaveryAspartofthisprocessinvestigatorsseektotakeexistingcrimesandbreakthemdownintocomponentpartstoidentifyldquoredflagsrdquothatcanbeusedasbenchmarksorindicatorsAlthoughdifferenttypesofcriminalactivitymaysharesomecausalfactorstheweightingoftheseandotherinfluencesdiffersfromoneoffendertypetoanotherClassificationsystems(taxonomies)identifythesetofcategoriesintowhichinstancesofagivenphenomenoncanbeplacedThustypologiesidentifygroupingsassumedtoexistintherealworldThisallowsthemtobeusedasaccuratepredictors

26The Mekong Club | Relationship Managers Training

ManybanksareseekingtousetheircomplianceteamstostudyunpackandthencreatetypologiestopredictcriminalbehaviourassociatedwithmoneylaunderingconsistentwithmodernslaverySincemoneylaunderingforavarietyofdifferentcriminalactivitiesmightlookthesamethisprocessisnoteasy

Thisdiagram27illustratesthecomplexityofrelationshipsbetweenandamongindividualsandinstitutionsAsmoretypologiesareidentifiedformodernslaverysituationssimilardiagramscanbedevelopedtotraincomplianceofficersonwhattolookfor

Figure 10 Money Laundering Typology Example Suspected Laundering of Mass Marketing Fraud Proceeds

Suspected fraudster 1

(alias)

Ordered EFTs EFTs sent

MSB agentUS location 1

MSB agentCDN location 1

Suspected fraud conspirators

Beneficiaries of EFTs from fraud victims

Shared address

MSB-issued cheques

CDN bank

Multiple fraudulent cheques mailed to US residents

Cash and MSB cheque depositsEFTs fromindividual in Europe

MMF MassMarketingFraud | EFTElectronicFundsTransfer | CNDCanada | MBSMoneyServicesBusiness

OneexampleofabankusingthisprocessincludeStandardCharteredBank(SCB)ForseveralyearsSCBhasbeenanalyzingtheirbusinessrelationshipsinIndiatoensurethatthereisnoriskofforcedlabouramongtheirmajorcustomersWithIndiabeingthecountrywiththehighestnumberofmodernslaverycasesthisprocessisimportanttoensurethatthebankisnotvulnerabletochargesofmoneylaundering

2 Using Forensic Accounting to Identify the Crimes

ForensicaccountingistheartandscienceofinvestigatingpeopleandmoneyThepracticeincorporatestraditionalaccountingprocedureswithinvestigativetechniquestoidentifythepotentialforcriminalbehaviourineachreal-worldsituationForensicaccountantscriticallyexamineanindividualrsquosoracompanyrsquoscompletefinancialoperationspouringthroughfinancialdocumentsandotherdatafromwhichtheyrootoutirregularspendingpatternsandorsuspicioustransactionsSimplyputtheyfollowthemoneytoseeifanyillegalactivitiesmightexistInvestigatingandanalyzingdocumentsandcircumstantialevidenceenablesthemtoformopinionstosupportorrefuteclaimsThesedaysmorefinancialservicesorganisationshavedepartmentsthatuseforensicaccountingtechniquesBelowareexamplesofforensicaccountcasescarriedoutbyafinancialintelligenceunitTheuseofforensicaccountingtoidentifymodernslaverywillcontinuetogrowinthecomingyearsasamajortooltoidentifytypologiespatternsandtrends

CASE STUDY

JPMorganrsquosFinancialIntelligenceUnitfirstapproachedhumantraffickingthroughadata-drivenlensWithpublicdomaininformationandlawenforcementpartnershipstheyrealizedthattheycoulddesignfinancialmodelsthatwouldproducecorrelationsinthedatathatwereredflagsfortrafficking

TheteampartneredwiththeUnitedStatesDepartmentofHomelandSecuritytocreatetypologiestoidentifyfinancialtransactionsandaccountattributesthatwereworthinvestigatingCertaingeographiclocationsandtypesofbusinessesndashnailsalonsnon-unionizedstoresrestaurantsndashwereviewedasahigherriskfortraffickingactivitybasedonpubliclysourcedinformationCoupledwiththetypesoftransactionsndashcreditcardchargesatcertainhoursofthenightforexamplendashJPMorganrsquosFinancialIntelligenceUnitbegantoseedistinctpatternsemergingForinstancetheyfound$100manicuresbetween2300and0400inManhattanldquoNobodyisgettingamanicurethatlateandwhoeverisgettingamanicureisnotpayingthatamountofmoneyforitrdquoViewedseparatelynoneofthevariablesseemedremarkableYetviewedinaggregatetheycreatedananomalyorpatternworthinvestigating

ThedistinctnatureofthepatternsisimportanttonoteDrugtraffickingandorganisedcrimecanraisesuspicionbecauselargeamountsofmoneyflowthroughasingleaccountButoftentraffickingdoesnotgeneratemoneyinquantitieslargeenoughtosendawarningtoFinCENfinancialcrimeenforcementunitoftheUSTreasury

3 Working with NGOs to Collect Data

Banksmustapproachmodernslaverythroughadata-drivenlensInthewordsofManhattanDistrictAttorneyCyrusVanceldquoAllsortsofelectronicanddigitalfingerprintsareleftwhenacrimeiscommittedorabusinessenterpriseisbeingrunFinancialinstitutionsareinauniquepositiontospotredflagsinbankingactivityandreportthemtolawenforcementrdquo28

ThesedigitalfingerprintsarerepresentedindatasetsUsingpublicdomaininformationprivateintelligencedatabasesandlawenforcementpartnershipsitispossibleforbankstoanalysedataidentifyingthosethathaveredflagsandproducecorrelationstouncovercriminalpatternsWhileextensivematerialonpossiblescenariosandindicatorsforterroristanddrugtraffickingactivitiesalreadyexistinthecaseofmodernslaverythereisnotyetacomprehensiveresourceFrustrationexistsforbankerswhomustcross-checksystemsthatarenotintegratedinordertofindtherightdataandthereisstillconfusionwithregardstowhichpiecesofinformationtolookforexactlyThisisduelargelytothefactthatmodernslaveryisarelativelynewtopicforbankstocover

ItisalsorelatedtothefactthatndashinthecaseofmodernslaveryndashdataismorecomplicatedtogatherandlinktosuspiciousactivitiesForexamplewhiledrugtraffickingandorganisedcrimecanraisesuspicionbecauselargeamountsofmoneyflowthroughasingleaccounthumantraffickingcasesdonotgeneratemoneyinsimilarquantitiesDifferentindicatorshavetobefoundandusuallyafewareneededtooccursimultaneouslyinordertocallatransactionsuspicious

Tosourcetherightpiecesofinformationspecificmodernslavery-relatedldquokeywordsrdquomustbeusedForemployeestoapplythesetermsitisessentialthatanybankemployees(egriskmanagersrelationshipmanagersseniorleadershipetc)whoarerequestedtolookattheissueofmodernslaveryreceiveappropriatetrainingTheinstructionofferedshouldincludeadescriptionofeachkeywordalongwithasummaryofwhenandwherethiscrimemostoftenoccursinwhichsectorsandunderwhatconditionsOnceproperlyinformeditiseasierforabankrsquos

stafftofindtherightdatafromtherightsourcesandcorrelatecertainredflagsthatotherwisemightbeoverlooked

OneNGOthatiscollaboratingwiththefinancialworldisLibertyAsia29 TheirldquoInformationStrategiesProgramrdquoworkswithNGOpartnersandinformationserviceproviderstoresearchandmakeavailableinformationonthoseidentifiedasbenefittingfinanciallyfrommodernslaveryThisinformationissharedwiththefinancialservicesectortohelpthemmakebetterbusinessdecisionsunderAnti-MoneyLaundering(ldquoAMLrdquo)andAnti-BriberyampCorruption(ldquoABCrdquo)regulatoryrequirementsLibertyAsiafacilitatestheflowofthistoduediligencespecialistprovidersnotablyThomsonReutersWorldCheck30TheReutersdatabaseisusedbymanyoftheworldrsquoslargestfinancialinstitutionsintheirclientduediligence(ldquoCDDrdquo)andknowyourcustomer(ldquoKYCrdquo)proceduresFormoreinformationondatasourcespleaserefertotheMekongClubrsquosone-pagerondatabelow

Figure 11 Data sources for Financial Services Providers

WHY DO WE LACK GOOD DATA

Donorsdonrsquotvaluedatacollectionandanalysis Datasharingislimited Govermentsdonotwanttobecriticised

DATA SOURCES FOR MODERN SLAVERY

ThomsonReutersWorld-Check TheLexisNexisWorldComplianceOnlineSearchTool USDepartmentofLabourrsquosListofGoodsProducedbyChildLabourorForcedLabour ResponsibleSourcingTool GlobalSlaveryIndex LibertyAsia Issaraproject ChabDai

WErsquoRE HELPING ONLY 008 OF SLAVERY VICTIMS ONE OF THE REASONS IS A LACK OF DATA

4 Forging Partnerships with Law Enforcement

OneimportantwaytounderstandtherelationshipbetweenmodernslaveryandmoneylaunderingistoforgepartnershipswithlawenforcementagenciestoworktogethertoanalyzedataandidentifytypologiesTheadvantageofthisapproachisthatitallowsforrealcasestobeusedaspartofthisprocessBelowaretwoexamplesofthisapproachinaction

New York City Working Group31In2013theManhattanDistrictAttorneysOfficesetupaworkinggroupwithnumerouscompaniestoswapmonitoringrulesandbestpracticesincludingAmericanExpressJPMorganChaseCitigroupBankofAmericaWellsFargoTDBankBarclaysandWesternUnion

Microsoft Digital Crimes Unit (DCU)32Thisforumusesattorneysinvestigatorsforensicanalystsandbusinessprofessionalsin30countriestoassistlawenforcement

OtherorganisationsthatdemonstratethecollaborationbetweentheprivatesectorandlawenforcementagenciesarelistedbelowWhilemostofthemfocusonissuesotherthanmodernslaveryandmoneylaunderingtheydoprovideamodelforhowcollaborationcanbebestaddressed

Financial Services Information Sharing and Analysis Center (FS-ISAC)33Anorganisationdedicatedtogatheringanddisseminating

reliableandtimelyinformationfromfinancialservicesproviderssecurityfirmslocalstateandfederallawenforcementagenciesandothertrustedresourcesrelatedtophysicalandcyber-basedthreatsagainstthefinancialservicescommunity

National Cyber-Forensics amp Training Alliance (NCFTA)34Anonprofitcorporationwithformalpartnershipsagreementswithmorethan40USprivate-sectororganisationsandmorethan15USandinternationallawenforcementorregulatoryagenciesTheNCFTAenlistssubjectmatterexpertsfromstakeholderorganisationstosharereal-timeintelligenceregardingcyber-basedthreatsandsupportsthedevelopmentofjointproactivestrategiestobetteridentifymitigateandultimatelyneutralizethreats

Electronic Crimes Task Forces35LedbytheUnitedStatesSecretServicethesegroupsbringtogetherfederalstateandlocallawenforcementwithprosecutorsprivateindustryandacademiaforthepurposeofpreventingdetectinginvestigatingandmitigatingattacksonthenationrsquosfinancialinfrastructuresGroupsarestructuredthroughlocalfieldofficesandorganisedinmostmajormetropolitanareas

InfraGard36LedbytheFederalBureauofInvestigationthisassociationwithrepresentativesfromtheprivatesectoracademiaandstatelocalandfederallawenforcementagenciesisdedicatedtosharing

informationandintelligencetopreventhostileactsagainsttheUnitedStatesLiketheElectronicCrimesTaskForceInfraGardiscomprisedofgroupsorganisedbyFBIfieldofficesinmajormetropolitanareas

Anti-Phishing Working Group (APWG)37 An organisationthatseekstounifytheglobalresponsetocybercrimeacrossindustrygovernmentandlawenforcementthroughdatasharingeducationandstandardsdevelopment

EachofthesegroupsisdifferentbutthecommonthreadisinformationsharingbetweentheprivatesectorandlawenforcementThiscollaborationincreasesknowledgeandawarenessofthreatsandisoftenrequiredtoeffectivelycaptureandprosecutethemastermindsbehindattacksonfinancialinstitutionsandtheircustomersThechartbelowdemonstratestherelationshipthatshouldbeconsideredwhenenteringintothiskindofpartnership

Law Enforcement

Illegal Industries

5 Creating and Using Big Data Filters

BigDatafilteringinthefinancialservicesworldreferstoarangeofstrategiesorsolutionsforrefiningmassivedatasetsAspartofthefilteringprocessdatasetsarebrokendownintoinformationthataspecificuserneedswithoutincludingotherdatathatcanberepetitiveirrelevantorevensensitiveDifferenttypesofdatafilterscanbeusedtoamendreportsqueryresultsorotherkindsofinformationresults

ToidentifypossiblemodernslaverycasesbanksaredevelopingbigdatafiltersthattracktransactionpatternsthatmightbeconsideredrelevantThisincludesrecurrentbusinesstransactionsoutsideofficialhoursofoperationcross-bordertransferoffundsinconsistentwiththestatedbusinesspurposeoftheaccountholdermultipledepositsthatarejustbelowthereportingthresholdrequirementaswellasahighnumberofindividualaccountsopenedandclosedsimultaneously

Belowarethreeexamplesofbigdatafiltersthatbuildrulesandtypologiesfortransactionmonitoringsystemsthatcapturespecificpatternsandbehaviorindicativeofhumantrafficking(redflags)

Verafin38VerafinanalyzestheflowoffundsofalltransactiontypesinandoutofbigdataaccountsincludingACHwirecashATMcheckandmonetaryinstrumentsAspartofthisprocesstheyhavesetupthefollowingfilteringparameters1)arisk-ratedmoneylaunderingalertthatisgeneratedbasedoncustomeractivitythatappearstogooutsidetheirnormalbehaviorrangeallowingbankstoprioritizetheirreviewworkload2)analertsummarythatincludesrelatedevidencestatisticsandtransactionstooptimizeabankrsquosabilitytofocusonaninvestigationand3)apre-populatedSuspiciousActivityReport(SAR)formatthatallowsthesystemtoquicklycreateandelectronicallysubmitthisdocumentwithoneclickVerafinalsodevelopedtheFRAMLxchangetofacilitatesecureinformationsharingamong314(b)institutionstohelpthemworktogethertofightcrimeThisexchangerepresentsthebankingindustryrsquoslargest314(b)networkwithmorethan1000collaboratinginstitutions

SAS Fiserv and Oracle Thisgrouphascometogethertouserulesandwatch-listfiltersaspartoftheirmonitoringsystems

MetaBank and NICE Actimize39ThesetwogroupsareworkingtogethertoaddressprepaidcardsTheyalsotrackwebsiteswheremodernslaverycanoccur

7 Identifying and Using ldquoRed Flagsrdquo Indicators

WhiletheUSDepartmentofTreasuryrsquosFinancialCrimesEnforcementNetwork(FinCEN)42maintainsthatcertainredflagscansignalpossiblemodernslaveryactivitymultiplevariablesneedtobeexaminedtoestablishastrongindicationofthecrimeAsalreadynotedabovetheseincluderecurrentbusinesstransactionsoutsideofficialhoursofoperationcross-bordertransferoffundsinconsistentwiththestatedbusinesspurposeoftheaccountholderaswellasahighnumberofindividualaccountsopenedandclosedsimultaneously

TheFinancialActionTaskForce(FATF)notesthatsomeofthemaintrendsdetectedforfinancialmanagementandlaunderingtheproceedsofmodernslaveryaresimilartothoseofotherorganizedcrimeactivitiesOverthepastthreeyearsseverallistsofpossiblemoneylaunderingactivitiesrelatedtomodernslaveryhaveemergedForexampleinJanuary2014acollectionoftopUSfinancialinstitutionsissuedawhitepaperentitledldquoWhitePapertoCombatHumanTraffickingUsingFinancialDatardquo43Thisdocumentofferedcutting-edgeguidancetofinancialinstitutionsandlawenforcementagenciestohelpidentifyndashthroughredflagsndashfinancialtransactionslinkedtomodernslaveryAccordingtotheauthorsldquoThislistisnotintendedtobeanexclusivelistofhighriskindicatorsandnoonefactorisdispositiveinassessingtherisksforSexandLabourTraffickingItisimportanttonotethateachofthefollowingindicatorsisunremarkablewhenviewedindividuallyItisonlywhenoneormoreoftheindicatorsareevaluatedalongsideotherriskfactorsorinformationaboutthetransactionsthataninvestigatormayreasonablyconcludethattheymaypresentahigherriskfortraffickingandshouldthereforebeinvestigatedfurtherrdquo

Red Flags within Banking TransactionsBelowaresomeofthemostcommonsuspicioustriggersthatshouldraisealarmandencouragesubsequentinvestigationsorthereportingofsuchillegalactivitiestotherelevantauthorities

6 Using Criminal Databases to Screen Clients

TherearetwodatabasesavailablethatcanbeusedtocollectcriticalinformationtoidentifypeoplewhoareinvolvedinmodernslaveryaroundtheworldThisallowsthefinancialworldtoscreenexistingandprospectivecustomersBelowisasummaryofbothtools

World-Check40AspartoftheThomsonReutersRiskManagementSolutionssuitetheldquoWorld-CheckrdquodatabaseofPoliticallyExposedPersons(PEPs)andheightened-riskindividualsandorganisationsisused

aroundtheworldtohelptoidentifyandmanagefinancialregulatoryandreputationalriskThecreationofthedatabasewasinresponsetolegislationaimedatreducingtheincidenceoffinancialcrimesWorld-CheckrsquosintelligencewasinitiallyusedbybanksandfinancialinstitutionsasacomprehensivesolutionforassessingmanagingandremediatingriskHoweveraslegislationhasbecomeincreasinglycomplexanditsreachincreasinglyglobalthedemandforsuchintelligencehasgrownbeyondthefinancialsectortoincludeorganisationsfromallsectors

World Compliance41LexisNexisRiskSolutionsmanagesldquoWorldCompliancerdquotofurtheritscommitmenttohelpingorganisationspreventfinancialcrimestoavoidpotentiallymillionsofdollarsinpenaltiesandfinesworldwideWorld

ComplianceisaleadingproviderofcustomerandvendorscreeningcontentusedforAnti-MoneyLaundering(AML)andGovernanceRiskandCompliance(GRC)solutionsWorldCompliancersquosPoliticallyExposedPersons(PEP)listsandEnhancedDueDiligencereportscomplementLexisNexisrsquoAMLsolution

CATEGORY POTENTIAL RED FLAGS

PAYROLL ACTIVITY IN BUSINESS ACCOUNTS

Non-paymentoftaxesworkmanrsquoscompensationandotherfeestoataxauthorityorothergoverningbodytypicallyassociatedwithlegitimatefull-timeemployment

Transfersoffundsbacktoemployerrsquosaccountorthesamethirdpartyafterpaymentofwages(apossibleindicatorthataworkerispayingoffadebttoanemployerorlabourbroker)

MethodsofpaymentstoemployeesthatmaybeindicativeofLabourTraffickingExamplesincludebull Rateofpayforeachpayperiodisidentical(nochangesforovertimevacationsickleavebonuspaymentsetc)in

jobswherethatwouldnotbeexpectedbull Everyemployeersquospaymentisidenticalbull Recurring(egbi-monthly)paymentsforwagesatunreasonablylowamounts(suchas$119fortheentirepay

periodafterdeductionsaretakenoutmaybeindicativeofdebtbondage)bull Chequesfromanemployerrsquosaccountallendorsedonthesamedayoftenatasingleestablishmentbull Labourcontractingorrecruitmentbusinesseswithoutdeductionsforthepaymentofwages

BUSINESS EXPENDITURES Relativelyhighexpendituresforitemsinconsistentwithstatedbusinesspurposesuchasrentalofmultiplehotelormotelroomsorapartments(toprovidehousingforworkers)largescalepurchasesofphonecardsandregularvehiclerentalswhensuchrentalsdonotappeartohavealogicalconnectiontotheunderlyingbusinessactivitiesofthecustomer

Ahighvolumeofcreditcardauthorizationsforaccommodationsorvehicleswithnosubsequentcharge(suggestinganintentiontoavoidleavinganelectronicrecordbypayingincash)

BusinessaccountsforcompaniesnotinthehospitalityindustryshowingpurchasesoflargeamountsoffoodandothernecessitiesmayindicatethatthebusinessisacquiringtheseitemstoselltoemployeesinaldquocompanystorerdquoarrangementthatisdesignedtokeepemployeesindebttotheemployerSuchpurchasesmayalsobeindicativeofthebusinesskeepingtheemployeesunderoneroof

BusinesscustomerswhosetransactionsoccuroutsidethetimeofknownbusinessoperationsExamplesincludebull 2amcreditcardtransactionsatanailsalonbull Significantandfrequentgasolinestationcreditcardchargesbetween11pmand6am(mayindicatethemovement

ofcarnivalworkersfarm-workersordoor-to-doorsalescrews(egmagazinesales) FinespaidtotheDepartmentofLabourorotherworkplaceregulatingentity Businesseswithanexcessivenumberofaccountsinconsistentwiththestatedbusinesspurposeofthecustomer

INDIVIDUAL ACCOUNTS APPEARING TO HAVE SAME EMPLOYER

Non-familialcustodialbankaccountswherethereisthesamecustodianonmultipleaccountsThisactivitymaybesuggestiveofanemployerlabourbrokercontrollingworkersrsquoaccountsandpreventingtheiraccesstotheirownfunds

RepeatedlyendorsingchequestothesamethirdpartyThisactivitymaybeindicativeofafinancialldquolooprdquoorldquoround-triprdquowhereemployeesappeartobereceivingwagesbutthefundsareultimatelyreroutedbacktothetraffickerthroughanintermediary

Issuanceofafinalchequetocloseoutanaccountthatismadepayabletotheemployerwhohadbeendepositingfundsintotheaccount

Bankaccountsopenedforvisaholdersthatreceivelittleornodepositsatallandorhavetheemployerasacustodianoftheaccount

Highnumberofindividualaccountsforthesamecustomerthatareallopenedorclosedonthesamedate

PERSONAL EXPENDITURES AND DEPOSITS

Individualswithanexcessivenumberofpersonalaccounts Repeatedlow-valuepaymentstoonlineorprintadvertisersknowntocatertothesexindustry Paymentstomultiplecellphoneutilitiescompaniesormultiplepaymentstothesamecompany High-volumeoftravelrelatedtransactions(egairlinesmotelsrentalcarsbusortaxichargesinmultiplecitiesorstates)includingthepaymentforthirdpartytraveloftennamingfemaleorminortravelerswhensuchtransactionsarenotlogicallyconnectedtothecustomerrsquostradeorbusiness

FrequentcashdepositsmadeviaATMratherthanatthetelleroratmultipleATMsonthesamedaysometimesfollowedbyATMwithdrawalsinadifferentlocation

Individualswithnominaloccupationinformationordiscrepanciesbetweenaccountfundingandtheknowncustomerprofile

Red Flags found with ManufacturingInadditiontothebankingscenarioslistedabovethetableonthenextpageaddressesthepotentialredflagsinherentwithinamigrantrecruitmentsituationThissecondexampledemonstratesthatthecontextforaparticularsetofindicatorsandredflagscanhappenbeyondthereachorexposureofagivenbankForexamplethefirsttablefocusesontheredflagsthatcanbedirectlyobservedthroughdailybankingtransactionsInotherwordsthebankersthemselvestracktheindicatorsaspartoftheirregularworkOntheotherhandtheindicatorsinthenexttablewouldneedtobetrackedby

thecompaniesthathireandusethelabourThisinformationcouldbecollectedbyauditsorthroughanonymousworkerhotlinesMostbankswouldnothavedirectcontactwithbusinessesatthislevelThereforeredflagsfallitintotwocategoriesthosethatbankscantrackdirectlyandthosethatneedtobetrackedbyothersIfredflagsindicateacriminalactivityinthesecondexampleandthebankisworkingwiththisorganisationthiscouldresultinapotentialmoneylaunderingoutcomeWiththisinmindbanksmustnotonlydotheirowninternalldquoduediligencerdquobutalsoensurethatthebusinessestheyfunddothesame

CATEGORY INDICATORS PRIVATE SECTOR ldquoRED FLAGSrdquo

DECEPTIVE RECRUITMENT

Persondeceivedaboutconditionsofwork Persondeceivedaboutthenatureofthejoblocationemployeroremployment

Persondeceivedaboutwagesearnings Persondeceivedaboutcontentorlegalityoftheworkcontract

Persondeceivedabouttheproposedbenefits Persondeceivedabouttherecruitmentconditions(recruitmentfeesandfraudulentdebt)

Persondeceivedaboutlegaldocumentationrequired Persondeceivedabouttheirmigrationstatus Persondeceivedabouthousingandworkingconditions Persondeceivedabouttravelconditions(sometimescrossingboardersillegallythroughsmuggling)

AspartofacaserevieworinterviewthefollowingfactorsareidentifiedasldquoredflagsrdquoVictim

Amajorinconsistencyisfoundbetweenanemployeersquosproposedagreementandtheconditionsandcircumstancesofhisherwork

Thereisaclearindicationofdeceptionrelatedtomanyormostaspectsofanemployeersquosconditionsandcircumstancesofhisherwork

ThereareelementsoftherecruitmentprocessthatareillegalRecruiter

Theinvolvedrecruitmentagencyagentbrokerisfoundtorepeatedlyandsystematicallydeceiveprospectiveemployees

Theinvolvedrecruitmentagencyagentbrokerisfoundtorepeatedlyandsystematicallyuseillegalpracticestorecruitworkers

COERCIVE RECRUITMENT

Existenceofabductionforcedmarriageandorsellingofvictims

Existenceofviolenceagainstvictims Existenceofdebtbondage Withholdingofmoney Existenceofisolationconfinementorsurveillance Existenceofthreatsofviolenceagainstthevictimorfamily Existenceofconfiscationofdocuments Existenceofthreatofdenunciationtoauthorizes Existenceofthreatstoinformfamilycommunityorpublic Existenceofviolenceagainstfamily(threatsoreffective)

Thereisaclearindicationofforcethreatsofforce(againstselfandfamily)violencefoundbetweenanemployeeandhisherrecruiter

Thereisaclearindicationofdebtbondageorwithholdingofmoneyordocumentationfoundbetweenanemployeeandhisherrecruiter

Recruiter Theinvolvedrecruitmentagencyagentbrokerisfoundtorepeatedlyandsystematicallyuseviolencethreatsandintimidationtoforceapersontoacceptaworksituation

Theinvolvedrecruitmentagencyagentbrokerisfoundtorepeatedlyandsystematicallywithholdmoneyandpersonaldocumentationtoforceapersontoacceptaworksituation

RECRUITMENT THROUGH ABUSE OF A PERSONrsquoS VULNERABILITY

Abuseofadifficultfamilysituation(divorcesexualphysicalabusesubstanceabuseetc)

Abuseofeconomicissuesandconstraints(povertyanddebt) Abuseofculturalreligiousbeliefs(ethnicminoritiesminorityreligionsetc)

Abuseofapersonrsquosillegalundocumentedstatus Abuseoflackofeducationinfluence(language) Abuseoflackofappropriateinformation Falseinformationaboutthelegalsystemandtheattitudeoftheauthorities

Falseinformationaboutthemeritsofsuccessfulmigration Psychologicalandemotionaldependencyonpowerbrokers(agentsbrokers)

ThefollowingfactorsareidentifiedasldquoredflagsrdquoVictim

Apersonrsquosadverselivingconditionsandcircumstancesareusedtotakeadvantageofhimherincludingfamilysituation(divorcesexualphysicalabusesubstanceabuseetc)povertyandsocialexclusion

Apersonrsquoslackofunderstandingofthelegalsystemandconditionsofemploymentareusedtotakeadvantageofhimher

Recruiter Theinvolvedrecruitmentagencyagentbrokerisfoundtorepeatedlyandsystematicallyuseapersonrsquosadverselivingconditionsandcircumstancestodeceiveorforceapersontoacceptaposition

Theinvolvedrecruitmentagencyagentbrokerisfoundtorepeatedlyandsystematicallydeceiveorforceapersontoacceptapositionbasedonalackoflegalunderstandingoranunderstandingoftheconditionsofthework

INDICATORS OF FORCED LABOR

Personisforcedtoworkagainsthisherwill Highlyoppressiveworkingconditions Withholdingofwagesndashlowornosalary Wagemanipulation(feesandfraudulentdebt) Debtbondage Violenceagainstperson Threatsofviolenceagainstthepersonorfamilymembers Confiscationofdocuments Excessiveworkingdaysorhours Unhealthyhazardousandorterribleworkinglivingconditions

Norespectoflabourlawsorsignedcontracttermsandconditions

Isolationconfinementorsurveillance Forcedintoillicitcriminalactivities Forcedtolietoauthoritiesfamilymembersauditorsetc Threatofdenunciationtoauthorities

Apersonrsquosworksituationisnotvoluntarybasedononeormoreofthefollowingfactorsviolencethreatsofviolencefraudulentillegaldebtorconfiscationofdocuments

Apersonrsquosworksituationoffersnopayorextremelylowpay Apersonrsquosworksituationincludesanoppressivejobthatisunhealthyhazardousandillegal

ApersonworksituationresultsinisolationconfinementorsurveillanceRecruiter

Theinvolvedemployerisfoundtorepeatedlyandsystematicallyuseviolencethreatsofviolencefraudulentillegaldebtorconfiscationofdocumentstoholdanemployeeinplace

Theinvolvedemployerisfoundtorepeatedlyandsystematicallywithholdpayorofferextremelylowpay

Theinvolvedemployeroffersunhealthyhazardousandorillegalwork Theinvolvedemployerhasnorespectforlabourlawsorsignedcontracttermsorconditions

RedFlagscanalsobeidentifiedbasedonarangeofdifferentenvironmentswithinagivenbusinessThefivemostsignificantcompliancecategoriesincludesocialenvironmentworkingenvironmentproductionenvironmentfinancialorganizationalenvironmentandmigrantworkerrecruitmentenvironmentThesectionbelowdetailsa

DUE DILIGENCE RELATED TO COMPLIANCE ENVIRONMENTSsetofkeyauditingcriteriaagainsteachofthesefivecategoriesThelistisnotexhaustivebutindicatesthetypesofquestionsthatshouldbeconsideredwithinarangeofbankingsituationsThislistcanbeusedbybankingcompliancepersonneltodetermineifagivenbusinessistrackingtheseitemsintheirregularmonitoringworkorwithinthirdpartyaudits

CATEGORY QUESTIONS TO ADDRESS RED FLAGS BY ENVIRONMENT

SOCIAL ENVIRONMENT

AreallworkersofficiallyregisteredlistedandcountedwithIDcardsinspectedandverified Isallcompensationpaidinlinewithlegalandindustrialstandards Arealllegalandindustriallimitsonworkinghoursshiftsweekendworkrestperiodsandbreakregulationsstrictlyobserved Arewagespaidontimewithoutunjustifieddeductionsofanykind Arealldeductionsincludedinthecontractandwithinlegalorindustrialregulations Iswithholdingofwagesinanywaynottolerated Wherethereispaymentofwagesmadetoanagencyareallentitlementspaidinfullandautomaticallyincludedinthescopeoftheaudit

Areadequatehousingandlivingstandards(whereprovided)inasecureenvironmentnoover-chargingoranyothermethodthatleadstoworkerdependenceanddenialofchoice

Doworkershaveclearchannelstofilecomplaintsandreceivepromptandaccurateresponsesbycompanies Areallsocialcontributionsandobligationsfulfilledincompliancewithlaws Aretherenorestrictionsonfreedomofmovement

WORKING ENVIRONMENT

Areworkersadequatelysupervisedandproperlytrainedtoperformtheirtasks Wherethejobfunctionposesadditionalhealthriskswithintolerableparametersareworkersthoroughlyinformedofsaidhealthrisksandprovidedwithachoice

Doesthecompanyprovideadditionalhealthchecksforjobfunctionswithhigherrisks Doesthecompanyprovideworkerswithadequateprotectivegearandworkingtoolsasperlegalorindustrialstandards Doesthecompanyensureaworkingenvironmentthatisfreefrompsychologicalpressuretoperformtasksthatmightputworkersrsquohealthindanger

Doworkershaveaccesstoadequatetraininganddevelopment Doallfactorieshaveclearlydefinedwrittengrievancemechanismsandcomplaintproceduresinplace

PRODUCTION ENVIRONMENT

Doesthecompanyallowsaccesstoproductionmasterdatasuchascapacityallocationsoutputfiguresqualityperformanceetc Doesthecompanyprovideaccurateinformationinrelationtocapabilitiesandexpertise DoesthecompanyinformifanorderisoutsourcedpartiallyorinfullInthiscaseeachoutsourcedpartnerautomaticallyisincludedinthescopeoftheaudit

Doesthecompanyguaranteeregularsafetyauditsevacuationexercisesfiredrillshealthchecksandanyotherprecautiontoincreasesafetyofworkerswithinalllegalandindustrialrequirements

FINANCIAL ENVIRONMENT

Isthecompanylegallyregisteredwithauthoritiesinpossessionofallrequiredpermitsandinfullcomplianceoftaxanddutyrelatedissues

Doesthecompanyconfirmthattheyarefinanciallysoundandabletomeetallobligationsinordertofulfillrequirementsandorders Doesthecompanyconfirmthatallinvestedcapitalintheoperationisfrompropersourcesanddoesnotposeanyrisktothecontinuanceofthebusinessandthereforeofthesafetytoemploymentofworkers

Doesthecompanyprovideadequateresourcestoconsistentlymanagetheworkerpoolwithinallorganisationalrequirementsasperlegalorindustrialstandards

Doesthecompanyprovideworkerrelatedstatisticsanddataifrequiredegnumberofsickdaysrotationdatalabourdisputesanddisputemediation

MIGRANT WORKER RECRUITMENT ENVIRONMENT

Doallworkershavewrittenemploymentcontractsinalanguagetheyunderstand Canthecompanyprovecontractshavenotbeensubstitutedateithersourceordestination Areallcontractscompliantwithlocallabourlaws Arethetasksbeingundertakenbyworkersconsistentwiththosespecifiedintheircontracts Arealldeductionsfromworkersrsquopay(egfoodaccommodations)clearlyspecified ArerecruitmentandbrokeragefeespaidbyworkerswithinlegallimitsestablishedbygovernmentofworkersrsquooriginIftherearenolegallimitsthefeesshouldnotexceedonemonthrsquossalaryperyearofcontractexcludingcontractextensions

Dothemigrantworkersretaincopiesoftheiridentificationdocuments Dothemigrantworkershaveaccesstosafewaystoremittheirsavingstotheirhomes

OTHER INDICATORS Customerdoesnotwantcorrespondencesenttoresidentialaddressusesapostofficeboxorhasadisconnectedornon-functioninghomeorbusinesstelephonenumber

Moneyispresentedinunusualconditionforexampledampodorousorcoatedwithsubstance Customerhasmultipleaccountswithdifferentfinancialinstitutionsfornoapparentreasonorrepeatedlyusesanaddressbutfrequentlychangesthenamesinvolved

Thecustomerhasfrequenttransactionsincontrasttoknownbusinessactivityoremploymentstatusandoffersambiguousorinconsistentexplanationsastothesourceoffunds

Customermakesstatementsaboutinvolvementincriminalactivitiesoristhesubjectofacriminalinvestigationorinsomecasescustomerisaccompaniedandwatched

Customerexhibitsnervousoruncooperativebehaviordemandsveryquickserviceorshowsuncommoncuriosityaboutinternalsystemscontrolsandpolicies

Customerpresentsconfusingdetailsaboutthetransactionorknowsfewdetailsaboutitspurposeorappearstoinformallyrecordlarge-volumetransactionsusingunconventionalbookkeepingmethodsorldquooff-the-recordrdquobooks

Customerover-justifiesorexplainsthetransactionissecretiveandreluctanttomeetinpersonandinsomecasesappearstobeactingonbehalfofathirdparty

Customerappearstohaverecentlyestablishedaseriesofnewrelationshipswithdifferentfinancialentities Customerspellshisorhernamedifferentlyfromonetransactiontoanother Customerattemptstodevelopcloserapportwiththestafforoffers

bull Moneygratuitiesorunusualfavorstostafffortheprovisionofservicesbull Thatmayappearunusualorsuspicious

Transactioninvolvesasuspectedshellcompany(thatisacorporationthathasnoassetsoperationsorotherreasonstoexist)

AddressingmodernslaveryasafinancialinstitutiondoesnotinvolveonedepartmentoroneteamacollectivecoordinatedeffortisessentialTherearemanyroleswhereslaverymaytouchday-to-dayactivities

BelowisatableoutliningtheteamsrolesandredflagsrelatedtothetopicofmodernslaveryandtherangeofbankingdepartmentsItisessentialthatallofthesecommunicateandworktogethertoaddresstheproblem

RELATIONSHIP MANAGEMENT AMONG BANKING DEPARTMENTS

TEAM ROLE EXPOSURE

Area PROCUREMENT AND SOURCING

TeamsinvolvedintheprocurementandsourcingofgoodsandservicesThismayincludetechnologyresourcecontractingorgoodssuchasofficesuppliesTheteamrolewouldbeaccountableforsourcingnewsuppliersandvettingtheseagainstinternalvendoronboardingguidelines

VendorPartnerManager

Mayactaspointofcontactforcontractingrelationshipmanagementinsomeinstances

TechnologySourcingManager

VendorPartnerRelationshipManager

Area FRONTLINE CUSTOMER-FACING ROLES (egLendingBusinessBankingCustomerComplaintsBranchStaff)

Teamsinvolvedinthecustomer-facingactivitiessuchascustomeronboardingprovisionoffinancialadvicedealingwithcustomercomplaintsandremediationactivitieson-goingcustomerclientrelationshipmanagement

RelationshipManager TeammayhaveexposuretomodernslaverythroughtheirclientscustomerspotentiallybeinginvolvedinthesetypesofactivitiesNeedtobeawareoftheredflagsandhowtoreportsuspiciousactivity

FinancialAdvisor

TeamManager

ContactCentreCallPerson

TEAM ROLE EXPOSURE

Area HUMAN RESOURCES

FacilitatethelsquoendtoendrsquorecruitmentprocessforallhiringProvidesadviceonsourcingstrategies(directsourcingrecruitmenagencymanagementreferraldrivesinternalmovesandheadhunting)InterviewingBackgroundcheckingandoffermanagementandfeedbacktocandidates

RecruitmentSpecialistTalentAcquisitionManager

AsinvolvedinsourcingofcandidatesitisimportanttobeawareofpotentialslaveryintheresourcepoolsParticularlyimportantinhighvolumeresourcingsuchasdataentrycontractors

ProvidethebusinesswithassistanceinallHRactivitiesincludingattractionengagementandretentionofemployeesinternationalassignmentsculturalinitiativescontractualandlegalemploymentmattersperformancemanagementcapabilitybuildingthroughlearninganddevelopmentinitiativesandremunerationarrangements

HumanResourceManager

Area STRATEGY BUSINESS DEVELOPMENT

DevelopmentandanalysisofnewbankinginitiativesandpropositionsInitialinvestigationintonewpartnershipopportunitiesandnewmarkettrends

StrategistDigitalManagerCustomerExperienceLead

Maybeinitialpointofcontactintonewbusinessventuresandpartnerships

Area RISK

Teamsinvolvedin OpRiskCompliancendashprovidingriskandcomplianceadvisorytothefrontlineteamsreviewingtheriskassessmentsandcontrolsusedacrossthebusinesstomitigatetherisk(incslaveryhumantraffickingandhumanrightsrisk)assuranceandoversightofeffectivenessofcontrolsandcompliance

CreditRiskManagerndashprovidereviewandapprovalforloanapplications

ComplianceManager Teamwillhavelimitedexposuretomodernslaverybutneedtobeawareoftheissueinlightoflegislativeobligationsaswellasbeingabletoadviseandofferguidancetothebusinessontheriskcontrolsandobligations

OperationalRiskManager

CreditRiskManager TeammayhaveexposuretomodernslaverythroughlendingapplicationsNeedtoensureESGelementsaretakenintoconsiderationasapartofthelendingapprovalprocessinordertoavoidinadvertentlysupportingthefinancingofhumantraffickingslaveryactivities

TEAM ROLE EXPOSURE

Area LEGAL

Involvedinalllegalmattersincludingcontractnegotiationsvendorpartnerassessments

LegalCounsel Teamwillhavelimitedexposuretomodernslaverybutneedtobeawareoftheissueinlightoflegislativeobligations

Area FINANCE

Providesfinancialandnon-financialmanagementreportingbudgetingandforecastingoperationalsupportanalyticalinsightanddecisionsupporttoourbusinesspartnersMayalsoberesponsibleforthefinancialcontrolframework

FinancialOfficer Teamwillhavelimitedexposuretomodernslavery

Area MARKETING AND COMMUNICATIONS

Accountableforcompanymarketingandcommunicationsstrategiesandexecution

Marketingandor

CommunicationsManager

Teamwillhavelimitedexposuretomodernslaveryhowevercanplayapivotalroleinexecutingonanti-slaverycampaignswithintheorganisationandexternally

Area LEARNING AND DEVELOPMENT

TheprimaryfunctionsofLearningandDevelopmentareto

inductionofnewemployees developmentofproductprocessandsystemskills coachingoncustomerconversations leadershipandcareerdevelopmentprograms

LearningampDevelopment

ManagerConsultant

Teamwillhavelimitedexposuretomodernslaveryhowevercanplayapivotalroleinexecutingtrainingandstaffawarenesscampaignswithintheorganisation

InternalcommunicationwithinmostcompaniesisgenerallylessthanidealThebankingworldisnoexceptionWithinmostlargebanksthereareoftenwell-establishedhierarchiesanddepartmentalsilosthatlimitthesharingofimportantinformationTobestaddresstheriskofmodernslaveryinabankingsituationtheremustbeaneffectiveflowofinformationthatisbothinclusiveandcomprehensiveGoodinternalcommunicationacrossdepartmentsisessentialforthefollowingreasons

CoordinationToprotectafinancialorganisationfromallegationsofmoneylaunderingrelatedtomodernslaverycoordinationamongthevariousdepartmentsisamustAnorganisationcanrsquotaddressinternalpoliciessmoothlywithoutpropercoordinationThrougheffectiveinternalcommunicationitispossibletocoordinatetheindividualresponsesamongalldepartments

ControlEffectiveinternalcommunicationhelpsensurethatinitiativesbeingusedareconsistentwiththerequirementsand

FACILITATING INTERNAL COMMUNICATION TO ADDRESS MONEY LAUNDERING RELATED TO MODERN SLAVERY

needsoftheoverallorganisationThisenablesinternalcontrolstobeputinplaceandfollowedbyallthoseinvolved

MotivationMethodsofinternalcommunicationhelpmotivateemployeesofanorganisationtobevigilantintheirattemptstoidentifyandmitigatemoneylaunderingrisksInternalcommunicationensuresgoodrelationshipsamonghighofficialsandsubordinatesThrougheffectiveinternalcommunicationemployeesinteractwithoneanotherwhichactsasamotivatingfactor

Develop the Managerial Efficiency To mitigateriskinanefficientandeffectivemannerarangeofdifferentmanagersmusthavetheproperknowledgeregardingtheinternalmechanismsoftheorganisation

Facilitate Decision MakingParticipationofrespectiveofficesinthedecision-makingprocessnotonlyincreasesthequalityofdecisionsbutalsoensuresthebetterimplementationofdecisions

Modern Slavery A Resource Guide for the Banking Industry 43

CONCLUSIONSThroughthispublicationouraimhasbeento

Providecomprehensiveup-to-dateinformationontheissuesofhumantraffickingandmodernslavery

Offerspecificinformationrelevanttofinancialinstitutionstoimplementinternalprocedureswhenaddressinghumantraffickingandmodernslavery

Provideguidanceonthetypesofredflagindicatorsandquestionsfrontlinestaffshouldbeaskingtoensurebusinessandreputationrisksareaddressedand

HelpmovehumantraffickingandmodernslaveryhigheruptheAMLagenda

AsmentionedthroughoutthisdocumentthefinancialservicesindustryhasadistinctadvantageinbeingabletoidentifysuspiciousactivityBankscanidentifynewandemergingmoneylaunderingtrendsthatmaybelinkedtomodernslaveryandindoingsocanalsohelptooffsettherisktotheirownorganisationfromexposuretoillegalandfraudulentbusinesses

WeencouragefinancialinstitutionstobecomemorecollaborativewithinthebankingcommunitytotakeapublicstandagainstthisterriblehumanrightsviolationIfamoreunifiedresponsewasinplacethiswouldhaveapositivetangibleimpactonthelivesofmillionsofvictims

WeattheMekongClubwouldliketothanktherepresentativesoftheFinancialServicesWorkingGroupfortheircommitmentandleadershipinhelpingtodevelopthistrainingapproach

THE MEKONG CLUB TheMissionoftheMekongClub(Association)istoactasacatalystforchangendashengaginginspiringandsupportingtheprivatesectortoleadinthefightagainstmodernslaveryMajorobjectivesinclude

1 usingafacilitationprocesstoidentifythegreatestchallengesimpactingcompaniesaddressingslavery

2 identificationofpracticalapproachesandsolutionstohelpaddressthesechallenges

3 increasingtheoverallunderstandingandawarenessofthisissuethroughoutthebusinesscommunityinHongKongandtheregionand

4 developingawarenessthroughouttheMekongregiontoexpandthereachandimpactoftheAssociationwork

WecurrentlyworkwithcorporationsfromfourindustriesFinancialServicesApparelandFootwearRetailandHospitalityForanannualmembershipsubscriptioncompaniesreceiveaccesstotheindustryworkinggroupsthataremostrelevanttotheirbrandAspartofthisworkinggrouptheymeetregularlytolearnsharebestpracticesandnetworkwithotherlike-mindedprofessionalsFurtherbenefitsincludeaccesstoeLearningcoursesanonlineknowledgecenterofkeyresourcestopic-specificworkshopsandresourceguides

REFERENCES1 ILOSaysForcedLabourGeneratesAnnualProfitsofUS$150BillionILO20142 TheGlobalSlaveryIndex20163 TheGlobalSlaveryIndex20164 TheGlobalSlaveryIndex20165 ILOGlobalEstimateofForcedLabourResultsandMethodologyILO20126 ILOGlobalEstimateofForcedLabourResultsandMethodologyILO20127 UNIAPCasesummary20118 HarvardInternationalReviewWinningtheFight31(1)Spring2009KevinBalesinterview9 C029-ForcedLabourConvention1930(No29)ConventionconcerningForcedorCompulsoryLabour10 PalermoProtocolProtocoltoPreventSuppressandPunishTraffickinginPersonsEspeciallyWomenandChildrensupplementingtheUnited

NationsConventionagainstTransnationalOrganizedCrime11 SlaveryConvention192612Modern Slavery Act 201513 SlaveryConvention192614 Bellagio-HarvardGuidelinesontheLegalParametersofSlavery15 PalermoProtocolProtocoltoPreventSuppressandPunishTraffickinginPersonsEspeciallyWomenandChildrensupplementingtheUnited

NationsConventionagainstTransnationalOrganizedCrime16 USStateDepartmentrsquosAnnualTraffickinginPersonsReport201617 USStateDepartmentrsquosAnnualTraffickinginPersonsReport201618 ILOSaysForcedLabourGeneratesAnnualProfitsofUS$150BillionILO201419 UNIAPinternaldocument201120 UNIAPinternaldocument201121 GuidingPrinciplesonBusinessandHumanRights201122 ActionPlanforanti-moneylaunderingandcounter-terroristfinanceUKGovernment201623 CaliforniaTransparencyinSupplyChainsActUSDepartmentofLabor201224Modern Slavery Act 201525 ILOSaysForcedLabourGeneratesAnnualProfitsofUS$150BillionILO201426 SuspiciousFinancialActivityandHumanTraffickingFinanceAgainstTrafficking27 MoneyLaunderingandTerroristFinancingTypologiesandTrendsforCanadianMoneyServicesBusinessesFINTRACTypologiesandTrendsReports201028 BankscanhelpstophumantraffickingsaysManhattanprosecutor29 LibertyAsia30 WorldCheckThomsonReuters

31 HowFinancialInstitutionsLeadWayinBattleAgainstHumanTrafficking32 MicrosoftDigitalCrimesUnit(DCU)33 FinancialServicesInformationSharingandAnalysisCenter(FS-ISAC)34 NationalCyber-ForensicsampampTrainingAlliance(NCFTA)35 ElectronicCrimesTaskForce36 InfraGard37 Anti-PishingWorkingGroup38 Verafin39 NICEActimizeSolutionsImplementedbyMetaBanktoSupportFinancialCrimeRiskStrategyByProvidinga360-DegreeViewofEnterpriseRisk40 WorldCheckThomsonReuters41WorldComplianceLexisNexisRiskSolutions42 UnitedStatesDepartmentoftheTreasuryFinancialCrimesEnforcementNetwork43 HumanTraffickingCustomerandFinancialTransactionTraitsThatMayPresentRiskTheBankersrsquoAllianceAgainstTrafficking

Forinformationpleasecontact

infothemekongcluborg

wwwthemekongcluborg

The Mekong Club | Modern Slavery A Resource Guide for the Banking Industry

Foreword

Modern Slavery

Understanding the Problem

Background

Hearing Victimsrsquo VoicesThe Cases

Modern Slavery An Overview of the Data

What Elements Comprise Slavery Today

Terms Definitions and Emerging Trends

Global Impact of Anti-Modern Slavery Efforts

Business Risk

Modern Slavery and the Financial Services Sector

How did modern slavery become an issue for the private sector

Trends Related to Modern Slavery and the Private Sector

Modern Slavery and Manufacturing


Due Diligence Related to Compliance Environments

Relationship Management among Banking Departments

Facilitating Internal Communication to address Money Laundering related to Modern Slavery

Conclusions

The Mekong Club

References

3 Foreword

4 MODERN SLAVERY UNDERSTANDING THE PROBLEM5 Background6 HearingVictimsrsquoVoicesTheCases8 ModernSlaveryAnOverviewoftheData11 WhatElementsCompriseSlaveryToday13 TermsDefinitionsandEmergingTrends16 GlobalImpactofAnti-ModernSlaveryEfforts17 BusinessRisk

18 MODERNSLAVERYANDTHEFINANCIALSERVICESSECTOR19 HowDidModernSlaveryBecomeanIssueforthePrivateSector19 TrendsRelatedtoModernSlaveryandthePrivateSector23 Modern Slavery and Manufacturing 23 ModernSlaveryandtheFinancialServicesSector37 DueDiligenceRelatedtoComplianceEnvironments40 RelationshipManagementamongBankingDepartments43 FacilitatingInternalCommunicationtoaddressMoneyLaunderingRelatedtoModernSlavery

44 Conclusions45 TheMekongClub46 References

A RESOURCE GUIDE FOR THE BANKING INDUSTRY

~ The Mekong Club

MODULE ONE

THE PROBLEM

GLOBAL OVERVIEW

THE AMERICAS

2168600

SUB-SAHARAN AFRICA

6245800

2936800

RUSSIA AND EURASIA

2809700

ASIA PACIFIC

30435300

EUROPE

1243400

LOW HIGH

SLAVERY BY COUNTRY

DR CONGO873100

PAKISTAN2134900

BANGLADESH1531300

CHINA3388400

INDONESIA736100

NIGERIA875500

RUSSIA1048500

INDIA18354700

NORTH KOREA1100000

UZBEKISTAN1236600

NorthKorea 437

RATE OF SLAVERY

Forced Labour

Forced prostitution

24Adults

Children

FRAUD AND DECEPTION

DEBTCREDIT BONDAGE

KIDNAPPING

$40000 $100

TRADITIONAL SLAVERY

CONTRACT SLAVERY

BONDED LABOUR

HUMAN TRAFFICKING

SLAVERYMARKERS

WithholdingWages

RetentionofIdentity

Documents

RestrictedMovement

PhysicalandSexual

Violence

i THE ACT OF

ii BY MEANS OF

EXPLOITATION

Globalslavefigure

Victimsrescued(02)

2008 2009 2010 2011 2012 2013 2014 2015

MODULE TWO

MODERN SLAVERY AND

WHO IS AFFECTED

Forcedprostitution

Agriculture(9bln)

34 bln

VULNERABLE SECTORS

(alias)

Shared address

MSB-issued cheques

CDN bank

CASE STUDY

Law Enforcement

Illegal Industries

SOCIAL ENVIRONMENT

WORKING ENVIRONMENT

TEAM ROLE EXPOSURE

FinancialAdvisor

TeamManager

TEAM ROLE EXPOSURE

Area RISK

TEAM ROLE EXPOSURE

Area LEGAL

Area FINANCE

Marketingandor

ManagerConsultant

wwwthemekongcluborg

Foreword

Modern Slavery

Background






Business Risk









Conclusions

The Mekong Club

References

~ The Mekong Club

MODULE ONE

THE PROBLEM

GLOBAL OVERVIEW

THE AMERICAS

2168600

SUB-SAHARAN AFRICA

6245800

2936800

RUSSIA AND EURASIA

2809700

ASIA PACIFIC

30435300

EUROPE

1243400

LOW HIGH

SLAVERY BY COUNTRY

DR CONGO873100

PAKISTAN2134900

BANGLADESH1531300

CHINA3388400

INDONESIA736100

NIGERIA875500

RUSSIA1048500

INDIA18354700

NORTH KOREA1100000

UZBEKISTAN1236600

NorthKorea 437

RATE OF SLAVERY

Forced Labour

Forced prostitution

24Adults

Children

FRAUD AND DECEPTION

DEBTCREDIT BONDAGE

KIDNAPPING

$40000 $100

TRADITIONAL SLAVERY

CONTRACT SLAVERY

BONDED LABOUR

HUMAN TRAFFICKING

SLAVERYMARKERS

WithholdingWages

RetentionofIdentity

Documents

RestrictedMovement

PhysicalandSexual

Violence

i THE ACT OF

ii BY MEANS OF

EXPLOITATION

Globalslavefigure

Victimsrescued(02)

2008 2009 2010 2011 2012 2013 2014 2015

MODULE TWO

MODERN SLAVERY AND

WHO IS AFFECTED

Forcedprostitution

Agriculture(9bln)

34 bln

VULNERABLE SECTORS

(alias)

Shared address

MSB-issued cheques

CDN bank

CASE STUDY

Law Enforcement

Illegal Industries

SOCIAL ENVIRONMENT

WORKING ENVIRONMENT

TEAM ROLE EXPOSURE

FinancialAdvisor

TeamManager

TEAM ROLE EXPOSURE

Area RISK

TEAM ROLE EXPOSURE

Area LEGAL

Area FINANCE

Marketingandor

ManagerConsultant

wwwthemekongcluborg

Foreword

Modern Slavery

Background






Business Risk









Conclusions

The Mekong Club

References

MODULE ONE

THE PROBLEM

GLOBAL OVERVIEW

THE AMERICAS

2168600

SUB-SAHARAN AFRICA

6245800

2936800

RUSSIA AND EURASIA

2809700

ASIA PACIFIC

30435300

EUROPE

1243400

LOW HIGH

SLAVERY BY COUNTRY

DR CONGO873100

PAKISTAN2134900

BANGLADESH1531300

CHINA3388400

INDONESIA736100

NIGERIA875500

RUSSIA1048500

INDIA18354700

NORTH KOREA1100000

UZBEKISTAN1236600

NorthKorea 437

RATE OF SLAVERY

Forced Labour

Forced prostitution

24Adults

Children

FRAUD AND DECEPTION

DEBTCREDIT BONDAGE

KIDNAPPING

$40000 $100

TRADITIONAL SLAVERY

CONTRACT SLAVERY

BONDED LABOUR

HUMAN TRAFFICKING

SLAVERYMARKERS

WithholdingWages

RetentionofIdentity

Documents

RestrictedMovement

PhysicalandSexual

Violence

i THE ACT OF

ii BY MEANS OF

EXPLOITATION

Globalslavefigure

Victimsrescued(02)

2008 2009 2010 2011 2012 2013 2014 2015

MODULE TWO

MODERN SLAVERY AND

WHO IS AFFECTED

Forcedprostitution

Agriculture(9bln)

34 bln

VULNERABLE SECTORS

(alias)

Shared address

MSB-issued cheques

CDN bank

CASE STUDY

Law Enforcement

Illegal Industries

SOCIAL ENVIRONMENT

WORKING ENVIRONMENT

TEAM ROLE EXPOSURE

FinancialAdvisor

TeamManager

TEAM ROLE EXPOSURE

Area RISK

TEAM ROLE EXPOSURE

Area LEGAL

Area FINANCE

Marketingandor

ManagerConsultant

wwwthemekongcluborg

Foreword

Modern Slavery

Background






Business Risk









Conclusions

The Mekong Club

References

GLOBAL OVERVIEW

THE AMERICAS

2168600

SUB-SAHARAN AFRICA

6245800

2936800

RUSSIA AND EURASIA

2809700

ASIA PACIFIC

30435300

EUROPE

1243400

LOW HIGH

SLAVERY BY COUNTRY

DR CONGO873100

PAKISTAN2134900

BANGLADESH1531300

CHINA3388400

INDONESIA736100

NIGERIA875500

RUSSIA1048500

INDIA18354700

NORTH KOREA1100000

UZBEKISTAN1236600

NorthKorea 437

RATE OF SLAVERY

Forced Labour

Forced prostitution

24Adults

Children

FRAUD AND DECEPTION

DEBTCREDIT BONDAGE

KIDNAPPING

$40000 $100

TRADITIONAL SLAVERY

CONTRACT SLAVERY

BONDED LABOUR

HUMAN TRAFFICKING

SLAVERYMARKERS

WithholdingWages

RetentionofIdentity

Documents

RestrictedMovement

PhysicalandSexual

Violence

i THE ACT OF

ii BY MEANS OF

EXPLOITATION

Globalslavefigure

Victimsrescued(02)

2008 2009 2010 2011 2012 2013 2014 2015

MODULE TWO

MODERN SLAVERY AND

WHO IS AFFECTED

Forcedprostitution

Agriculture(9bln)

34 bln

VULNERABLE SECTORS

(alias)

Shared address

MSB-issued cheques

CDN bank

CASE STUDY

Law Enforcement

Illegal Industries

SOCIAL ENVIRONMENT

WORKING ENVIRONMENT

TEAM ROLE EXPOSURE

FinancialAdvisor

TeamManager

TEAM ROLE EXPOSURE

Area RISK

TEAM ROLE EXPOSURE

Area LEGAL

Area FINANCE

Marketingandor

ManagerConsultant

wwwthemekongcluborg

Foreword

Modern Slavery

Background






Business Risk









Conclusions

The Mekong Club

References

GLOBAL OVERVIEW

THE AMERICAS

2168600

SUB-SAHARAN AFRICA

6245800

2936800

RUSSIA AND EURASIA

2809700

ASIA PACIFIC

30435300

EUROPE

1243400

LOW HIGH

SLAVERY BY COUNTRY

DR CONGO873100

PAKISTAN2134900

BANGLADESH1531300

CHINA3388400

INDONESIA736100

NIGERIA875500

RUSSIA1048500

INDIA18354700

NORTH KOREA1100000

UZBEKISTAN1236600

NorthKorea 437

RATE OF SLAVERY

Forced Labour

Forced prostitution

24Adults

Children

FRAUD AND DECEPTION

DEBTCREDIT BONDAGE

KIDNAPPING

$40000 $100

TRADITIONAL SLAVERY

CONTRACT SLAVERY

BONDED LABOUR

HUMAN TRAFFICKING

SLAVERYMARKERS

WithholdingWages

RetentionofIdentity

Documents

RestrictedMovement

PhysicalandSexual

Violence

i THE ACT OF

ii BY MEANS OF

EXPLOITATION

Globalslavefigure

Victimsrescued(02)

2008 2009 2010 2011 2012 2013 2014 2015

MODULE TWO

MODERN SLAVERY AND

WHO IS AFFECTED

Forcedprostitution

Agriculture(9bln)

34 bln

VULNERABLE SECTORS

(alias)

Shared address

MSB-issued cheques

CDN bank

CASE STUDY

Law Enforcement

Illegal Industries

SOCIAL ENVIRONMENT

WORKING ENVIRONMENT

TEAM ROLE EXPOSURE

FinancialAdvisor

TeamManager

TEAM ROLE EXPOSURE

Area RISK

TEAM ROLE EXPOSURE

Area LEGAL

Area FINANCE

Marketingandor

ManagerConsultant

wwwthemekongcluborg

Foreword

Modern Slavery

Background






Business Risk









Conclusions

The Mekong Club

References

GLOBAL OVERVIEW

THE AMERICAS

2168600

SUB-SAHARAN AFRICA

6245800

2936800

RUSSIA AND EURASIA

2809700

ASIA PACIFIC

30435300

EUROPE

1243400

LOW HIGH

SLAVERY BY COUNTRY

DR CONGO873100

PAKISTAN2134900

BANGLADESH1531300

CHINA3388400

INDONESIA736100

NIGERIA875500

RUSSIA1048500

INDIA18354700

NORTH KOREA1100000

UZBEKISTAN1236600

NorthKorea 437

RATE OF SLAVERY

Forced Labour

Forced prostitution

24Adults

Children

FRAUD AND DECEPTION

DEBTCREDIT BONDAGE

KIDNAPPING

$40000 $100

TRADITIONAL SLAVERY

CONTRACT SLAVERY

BONDED LABOUR

HUMAN TRAFFICKING

SLAVERYMARKERS

WithholdingWages

RetentionofIdentity

Documents

RestrictedMovement

PhysicalandSexual

Violence

i THE ACT OF

ii BY MEANS OF

EXPLOITATION

Globalslavefigure

Victimsrescued(02)

2008 2009 2010 2011 2012 2013 2014 2015

MODULE TWO

MODERN SLAVERY AND

WHO IS AFFECTED

Forcedprostitution

Agriculture(9bln)

34 bln

VULNERABLE SECTORS

(alias)

Shared address

MSB-issued cheques

CDN bank

CASE STUDY

Law Enforcement

Illegal Industries

SOCIAL ENVIRONMENT

WORKING ENVIRONMENT

TEAM ROLE EXPOSURE

FinancialAdvisor

TeamManager

TEAM ROLE EXPOSURE

Area RISK

TEAM ROLE EXPOSURE

Area LEGAL

Area FINANCE

Marketingandor

ManagerConsultant

wwwthemekongcluborg

Foreword

Modern Slavery

Background






Business Risk









Conclusions

The Mekong Club

References

GLOBAL OVERVIEW

THE AMERICAS

2168600

SUB-SAHARAN AFRICA

6245800

2936800

RUSSIA AND EURASIA

2809700

ASIA PACIFIC

30435300

EUROPE

1243400

LOW HIGH

SLAVERY BY COUNTRY

DR CONGO873100

PAKISTAN2134900

BANGLADESH1531300

CHINA3388400

INDONESIA736100

NIGERIA875500

RUSSIA1048500

INDIA18354700

NORTH KOREA1100000

UZBEKISTAN1236600

NorthKorea 437

RATE OF SLAVERY

Forced Labour

Forced prostitution

24Adults

Children

FRAUD AND DECEPTION

DEBTCREDIT BONDAGE

KIDNAPPING

$40000 $100

TRADITIONAL SLAVERY

CONTRACT SLAVERY

BONDED LABOUR

HUMAN TRAFFICKING

SLAVERYMARKERS

WithholdingWages

RetentionofIdentity

Documents

RestrictedMovement

PhysicalandSexual

Violence

i THE ACT OF

ii BY MEANS OF

EXPLOITATION

Globalslavefigure

Victimsrescued(02)

2008 2009 2010 2011 2012 2013 2014 2015

MODULE TWO

MODERN SLAVERY AND

WHO IS AFFECTED

Forcedprostitution

Agriculture(9bln)

34 bln

VULNERABLE SECTORS

(alias)

Shared address

MSB-issued cheques

CDN bank

CASE STUDY

Law Enforcement

Illegal Industries

SOCIAL ENVIRONMENT

WORKING ENVIRONMENT

TEAM ROLE EXPOSURE

FinancialAdvisor

TeamManager

TEAM ROLE EXPOSURE

Area RISK

TEAM ROLE EXPOSURE

Area LEGAL

Area FINANCE

Marketingandor

ManagerConsultant

wwwthemekongcluborg

Foreword

Modern Slavery

Background






Business Risk









Conclusions

The Mekong Club

References

SLAVERY BY COUNTRY

DR CONGO873100

PAKISTAN2134900

BANGLADESH1531300

CHINA3388400

INDONESIA736100

NIGERIA875500

RUSSIA1048500

INDIA18354700

NORTH KOREA1100000

UZBEKISTAN1236600

NorthKorea 437

RATE OF SLAVERY

Forced Labour

Forced prostitution

24Adults

Children

FRAUD AND DECEPTION

DEBTCREDIT BONDAGE

KIDNAPPING

$40000 $100

TRADITIONAL SLAVERY

CONTRACT SLAVERY

BONDED LABOUR

HUMAN TRAFFICKING

SLAVERYMARKERS

WithholdingWages

RetentionofIdentity

Documents

RestrictedMovement

PhysicalandSexual

Violence

i THE ACT OF

ii BY MEANS OF

EXPLOITATION

Globalslavefigure

Victimsrescued(02)

2008 2009 2010 2011 2012 2013 2014 2015

MODULE TWO

MODERN SLAVERY AND

WHO IS AFFECTED

Forcedprostitution

Agriculture(9bln)

34 bln

VULNERABLE SECTORS

(alias)

Shared address

MSB-issued cheques

CDN bank

CASE STUDY

Law Enforcement

Illegal Industries

SOCIAL ENVIRONMENT

WORKING ENVIRONMENT

TEAM ROLE EXPOSURE

FinancialAdvisor

TeamManager

TEAM ROLE EXPOSURE

Area RISK

TEAM ROLE EXPOSURE

Area LEGAL

Area FINANCE

Marketingandor

ManagerConsultant

wwwthemekongcluborg

Foreword

Modern Slavery

Background






Business Risk









Conclusions

The Mekong Club

References

RATE OF SLAVERY

Forced Labour

Forced prostitution

24Adults

Children

FRAUD AND DECEPTION

DEBTCREDIT BONDAGE

KIDNAPPING

$40000 $100

TRADITIONAL SLAVERY

CONTRACT SLAVERY

BONDED LABOUR

HUMAN TRAFFICKING

SLAVERYMARKERS

WithholdingWages

RetentionofIdentity

Documents

RestrictedMovement

PhysicalandSexual

Violence

i THE ACT OF

ii BY MEANS OF

EXPLOITATION

Globalslavefigure

Victimsrescued(02)

2008 2009 2010 2011 2012 2013 2014 2015

MODULE TWO

MODERN SLAVERY AND

WHO IS AFFECTED

Forcedprostitution

Agriculture(9bln)

34 bln

VULNERABLE SECTORS

(alias)

Shared address

MSB-issued cheques

CDN bank

CASE STUDY

Law Enforcement

Illegal Industries

SOCIAL ENVIRONMENT

WORKING ENVIRONMENT

TEAM ROLE EXPOSURE

FinancialAdvisor

TeamManager

TEAM ROLE EXPOSURE

Area RISK

TEAM ROLE EXPOSURE

Area LEGAL

Area FINANCE

Marketingandor

ManagerConsultant

wwwthemekongcluborg

Foreword

Modern Slavery

Background






Business Risk









Conclusions

The Mekong Club

References

FRAUD AND DECEPTION

DEBTCREDIT BONDAGE

KIDNAPPING

$40000 $100

TRADITIONAL SLAVERY

CONTRACT SLAVERY

BONDED LABOUR

HUMAN TRAFFICKING

SLAVERYMARKERS

WithholdingWages

RetentionofIdentity

Documents

RestrictedMovement

PhysicalandSexual

Violence

i THE ACT OF

ii BY MEANS OF

EXPLOITATION

Globalslavefigure

Victimsrescued(02)

2008 2009 2010 2011 2012 2013 2014 2015

MODULE TWO

MODERN SLAVERY AND

WHO IS AFFECTED

Forcedprostitution

Agriculture(9bln)

34 bln

VULNERABLE SECTORS

(alias)

Shared address

MSB-issued cheques

CDN bank

CASE STUDY

Law Enforcement

Illegal Industries

SOCIAL ENVIRONMENT

WORKING ENVIRONMENT

TEAM ROLE EXPOSURE

FinancialAdvisor

TeamManager

TEAM ROLE EXPOSURE

Area RISK

TEAM ROLE EXPOSURE

Area LEGAL

Area FINANCE

Marketingandor

ManagerConsultant

wwwthemekongcluborg

Foreword

Modern Slavery

Background






Business Risk









Conclusions

The Mekong Club

References

KIDNAPPING

$40000 $100

TRADITIONAL SLAVERY

CONTRACT SLAVERY

BONDED LABOUR

HUMAN TRAFFICKING

SLAVERYMARKERS

WithholdingWages

RetentionofIdentity

Documents

RestrictedMovement

PhysicalandSexual

Violence

i THE ACT OF

ii BY MEANS OF

EXPLOITATION

Globalslavefigure

Victimsrescued(02)

2008 2009 2010 2011 2012 2013 2014 2015

MODULE TWO

MODERN SLAVERY AND

WHO IS AFFECTED

Forcedprostitution

Agriculture(9bln)

34 bln

VULNERABLE SECTORS

(alias)

Shared address

MSB-issued cheques

CDN bank

CASE STUDY

Law Enforcement

Illegal Industries

SOCIAL ENVIRONMENT

WORKING ENVIRONMENT

TEAM ROLE EXPOSURE

FinancialAdvisor

TeamManager

TEAM ROLE EXPOSURE

Area RISK

TEAM ROLE EXPOSURE

Area LEGAL

Area FINANCE

Marketingandor

ManagerConsultant

wwwthemekongcluborg

Foreword

Modern Slavery

Background






Business Risk









Conclusions

The Mekong Club

References

TRADITIONAL SLAVERY

CONTRACT SLAVERY

BONDED LABOUR

HUMAN TRAFFICKING

SLAVERYMARKERS

WithholdingWages

RetentionofIdentity

Documents

RestrictedMovement

PhysicalandSexual

Violence

i THE ACT OF

ii BY MEANS OF

EXPLOITATION

Globalslavefigure

Victimsrescued(02)

2008 2009 2010 2011 2012 2013 2014 2015

MODULE TWO

MODERN SLAVERY AND

WHO IS AFFECTED

Forcedprostitution

Agriculture(9bln)

34 bln

VULNERABLE SECTORS

(alias)

Shared address

MSB-issued cheques

CDN bank

CASE STUDY

Law Enforcement

Illegal Industries

SOCIAL ENVIRONMENT

WORKING ENVIRONMENT

TEAM ROLE EXPOSURE

FinancialAdvisor

TeamManager

TEAM ROLE EXPOSURE

Area RISK

TEAM ROLE EXPOSURE

Area LEGAL

Area FINANCE

Marketingandor

ManagerConsultant

wwwthemekongcluborg

Foreword

Modern Slavery

Background






Business Risk









Conclusions

The Mekong Club

References

TRADITIONAL SLAVERY

CONTRACT SLAVERY

BONDED LABOUR

HUMAN TRAFFICKING

SLAVERYMARKERS

WithholdingWages

RetentionofIdentity

Documents

RestrictedMovement

PhysicalandSexual

Violence

i THE ACT OF

ii BY MEANS OF

EXPLOITATION

Globalslavefigure

Victimsrescued(02)

2008 2009 2010 2011 2012 2013 2014 2015

MODULE TWO

MODERN SLAVERY AND

WHO IS AFFECTED

Forcedprostitution

Agriculture(9bln)

34 bln

VULNERABLE SECTORS

(alias)

Shared address

MSB-issued cheques

CDN bank

CASE STUDY

Law Enforcement

Illegal Industries

SOCIAL ENVIRONMENT

WORKING ENVIRONMENT

TEAM ROLE EXPOSURE

FinancialAdvisor

TeamManager

TEAM ROLE EXPOSURE

Area RISK

TEAM ROLE EXPOSURE

Area LEGAL

Area FINANCE

Marketingandor

ManagerConsultant

wwwthemekongcluborg

Foreword

Modern Slavery

Background






Business Risk









Conclusions

The Mekong Club

References

SLAVERYMARKERS

WithholdingWages

RetentionofIdentity

Documents

RestrictedMovement

PhysicalandSexual

Violence

i THE ACT OF

ii BY MEANS OF

EXPLOITATION

Globalslavefigure

Victimsrescued(02)

2008 2009 2010 2011 2012 2013 2014 2015

MODULE TWO

MODERN SLAVERY AND

WHO IS AFFECTED

Forcedprostitution

Agriculture(9bln)

34 bln

VULNERABLE SECTORS

(alias)

Shared address

MSB-issued cheques

CDN bank

CASE STUDY

Law Enforcement

Illegal Industries

SOCIAL ENVIRONMENT

WORKING ENVIRONMENT

TEAM ROLE EXPOSURE

FinancialAdvisor

TeamManager

TEAM ROLE EXPOSURE

Area RISK

TEAM ROLE EXPOSURE

Area LEGAL

Area FINANCE

Marketingandor

ManagerConsultant

wwwthemekongcluborg

Foreword

Modern Slavery

Background






Business Risk









Conclusions

The Mekong Club

References

Globalslavefigure

Victimsrescued(02)

2008 2009 2010 2011 2012 2013 2014 2015

MODULE TWO

MODERN SLAVERY AND

WHO IS AFFECTED

Forcedprostitution

Agriculture(9bln)

34 bln

VULNERABLE SECTORS

(alias)

Shared address

MSB-issued cheques

CDN bank

CASE STUDY

Law Enforcement

Illegal Industries

SOCIAL ENVIRONMENT

WORKING ENVIRONMENT

TEAM ROLE EXPOSURE

FinancialAdvisor

TeamManager

TEAM ROLE EXPOSURE

Area RISK

TEAM ROLE EXPOSURE

Area LEGAL

Area FINANCE

Marketingandor

ManagerConsultant

wwwthemekongcluborg

Foreword

Modern Slavery

Background






Business Risk









Conclusions

The Mekong Club

References

MODULE TWO

MODERN SLAVERY AND

WHO IS AFFECTED

Forcedprostitution

Agriculture(9bln)

34 bln

VULNERABLE SECTORS

(alias)

Shared address

MSB-issued cheques

CDN bank

CASE STUDY

Law Enforcement

Illegal Industries

SOCIAL ENVIRONMENT

WORKING ENVIRONMENT

TEAM ROLE EXPOSURE

FinancialAdvisor

TeamManager

TEAM ROLE EXPOSURE

Area RISK

TEAM ROLE EXPOSURE

Area LEGAL

Area FINANCE

Marketingandor

ManagerConsultant

wwwthemekongcluborg

Foreword

Modern Slavery

Background






Business Risk









Conclusions

The Mekong Club

References

MODULE TWO

MODERN SLAVERY AND

WHO IS AFFECTED

Forcedprostitution

Agriculture(9bln)

34 bln

VULNERABLE SECTORS

(alias)

Shared address

MSB-issued cheques

CDN bank

CASE STUDY

Law Enforcement

Illegal Industries

SOCIAL ENVIRONMENT

WORKING ENVIRONMENT

TEAM ROLE EXPOSURE

FinancialAdvisor

TeamManager

TEAM ROLE EXPOSURE

Area RISK

TEAM ROLE EXPOSURE

Area LEGAL

Area FINANCE

Marketingandor

ManagerConsultant

wwwthemekongcluborg

Foreword

Modern Slavery

Background






Business Risk









Conclusions

The Mekong Club

References

WHO IS AFFECTED

Forcedprostitution

Agriculture(9bln)

34 bln

VULNERABLE SECTORS

(alias)

Shared address

MSB-issued cheques

CDN bank

CASE STUDY

Law Enforcement

Illegal Industries

SOCIAL ENVIRONMENT

WORKING ENVIRONMENT

TEAM ROLE EXPOSURE

FinancialAdvisor

TeamManager

TEAM ROLE EXPOSURE

Area RISK

TEAM ROLE EXPOSURE

Area LEGAL

Area FINANCE

Marketingandor

ManagerConsultant

wwwthemekongcluborg

Foreword

Modern Slavery

Background






Business Risk









Conclusions

The Mekong Club

References

WHO IS AFFECTED

Forcedprostitution

Agriculture(9bln)

34 bln

VULNERABLE SECTORS

(alias)

Shared address

MSB-issued cheques

CDN bank

CASE STUDY

Law Enforcement

Illegal Industries

SOCIAL ENVIRONMENT

WORKING ENVIRONMENT

TEAM ROLE EXPOSURE

FinancialAdvisor

TeamManager

TEAM ROLE EXPOSURE

Area RISK

TEAM ROLE EXPOSURE

Area LEGAL

Area FINANCE

Marketingandor

ManagerConsultant

wwwthemekongcluborg

Foreword

Modern Slavery

Background






Business Risk









Conclusions

The Mekong Club

References

Forcedprostitution

Agriculture(9bln)

34 bln

VULNERABLE SECTORS

(alias)

Shared address

MSB-issued cheques

CDN bank

CASE STUDY

Law Enforcement

Illegal Industries

SOCIAL ENVIRONMENT

WORKING ENVIRONMENT

TEAM ROLE EXPOSURE

FinancialAdvisor

TeamManager

TEAM ROLE EXPOSURE

Area RISK

TEAM ROLE EXPOSURE

Area LEGAL

Area FINANCE

Marketingandor

ManagerConsultant

wwwthemekongcluborg

Foreword

Modern Slavery

Background






Business Risk









Conclusions

The Mekong Club

References

Forcedprostitution

Agriculture(9bln)

34 bln

VULNERABLE SECTORS

(alias)

Shared address

MSB-issued cheques

CDN bank

CASE STUDY

Law Enforcement

Illegal Industries

SOCIAL ENVIRONMENT

WORKING ENVIRONMENT

TEAM ROLE EXPOSURE

FinancialAdvisor

TeamManager

TEAM ROLE EXPOSURE

Area RISK

TEAM ROLE EXPOSURE

Area LEGAL

Area FINANCE

Marketingandor

ManagerConsultant

wwwthemekongcluborg

Foreword

Modern Slavery

Background






Business Risk









Conclusions

The Mekong Club

References

Forcedprostitution

Agriculture(9bln)

34 bln

VULNERABLE SECTORS

(alias)

Shared address

MSB-issued cheques

CDN bank

CASE STUDY

Law Enforcement

Illegal Industries

SOCIAL ENVIRONMENT

WORKING ENVIRONMENT

TEAM ROLE EXPOSURE

FinancialAdvisor

TeamManager

TEAM ROLE EXPOSURE

Area RISK

TEAM ROLE EXPOSURE

Area LEGAL

Area FINANCE

Marketingandor

ManagerConsultant

wwwthemekongcluborg

Foreword

Modern Slavery

Background






Business Risk









Conclusions

The Mekong Club

References

VULNERABLE SECTORS

(alias)

Shared address

MSB-issued cheques

CDN bank

CASE STUDY

Law Enforcement

Illegal Industries

SOCIAL ENVIRONMENT

WORKING ENVIRONMENT

TEAM ROLE EXPOSURE

FinancialAdvisor

TeamManager

TEAM ROLE EXPOSURE

Area RISK

TEAM ROLE EXPOSURE

Area LEGAL

Area FINANCE

Marketingandor

ManagerConsultant

wwwthemekongcluborg

Foreword

Modern Slavery

Background






Business Risk









Conclusions

The Mekong Club

References

(alias)

Shared address

MSB-issued cheques

CDN bank

CASE STUDY

Law Enforcement

Illegal Industries

SOCIAL ENVIRONMENT

WORKING ENVIRONMENT

TEAM ROLE EXPOSURE

FinancialAdvisor

TeamManager

TEAM ROLE EXPOSURE

Area RISK

TEAM ROLE EXPOSURE

Area LEGAL

Area FINANCE

Marketingandor

ManagerConsultant

wwwthemekongcluborg

Foreword

Modern Slavery

Background






Business Risk









Conclusions

The Mekong Club

References

(alias)

Shared address

MSB-issued cheques

CDN bank

CASE STUDY

Law Enforcement

Illegal Industries

SOCIAL ENVIRONMENT

WORKING ENVIRONMENT

TEAM ROLE EXPOSURE

FinancialAdvisor

TeamManager

TEAM ROLE EXPOSURE

Area RISK

TEAM ROLE EXPOSURE

Area LEGAL

Area FINANCE

Marketingandor

ManagerConsultant

wwwthemekongcluborg

Foreword

Modern Slavery

Background






Business Risk









Conclusions

The Mekong Club

References

(alias)

Shared address

MSB-issued cheques

CDN bank

CASE STUDY

Law Enforcement

Illegal Industries

SOCIAL ENVIRONMENT

WORKING ENVIRONMENT

TEAM ROLE EXPOSURE

FinancialAdvisor

TeamManager

TEAM ROLE EXPOSURE

Area RISK

TEAM ROLE EXPOSURE

Area LEGAL

Area FINANCE

Marketingandor

ManagerConsultant

wwwthemekongcluborg

Foreword

Modern Slavery

Background






Business Risk









Conclusions

The Mekong Club

References

CASE STUDY

Law Enforcement

Illegal Industries

SOCIAL ENVIRONMENT

WORKING ENVIRONMENT

TEAM ROLE EXPOSURE

FinancialAdvisor

TeamManager

TEAM ROLE EXPOSURE

Area RISK

TEAM ROLE EXPOSURE

Area LEGAL

Area FINANCE

Marketingandor

ManagerConsultant

wwwthemekongcluborg

Foreword

Modern Slavery

Background






Business Risk









Conclusions

The Mekong Club

References

Law Enforcement

Illegal Industries

SOCIAL ENVIRONMENT

WORKING ENVIRONMENT

TEAM ROLE EXPOSURE

FinancialAdvisor

TeamManager

TEAM ROLE EXPOSURE

Area RISK

TEAM ROLE EXPOSURE

Area LEGAL

Area FINANCE

Marketingandor

ManagerConsultant

wwwthemekongcluborg

Foreword

Modern Slavery

Background






Business Risk









Conclusions

The Mekong Club

References

Law Enforcement

Illegal Industries

SOCIAL ENVIRONMENT

WORKING ENVIRONMENT

TEAM ROLE EXPOSURE

FinancialAdvisor

TeamManager

TEAM ROLE EXPOSURE

Area RISK

TEAM ROLE EXPOSURE

Area LEGAL

Area FINANCE

Marketingandor

ManagerConsultant

wwwthemekongcluborg

Foreword

Modern Slavery

Background






Business Risk









Conclusions

The Mekong Club

References

SOCIAL ENVIRONMENT

WORKING ENVIRONMENT

TEAM ROLE EXPOSURE

FinancialAdvisor

TeamManager

TEAM ROLE EXPOSURE

Area RISK

TEAM ROLE EXPOSURE

Area LEGAL

Area FINANCE

Marketingandor

ManagerConsultant

wwwthemekongcluborg

Foreword

Modern Slavery

Background






Business Risk









Conclusions

The Mekong Club

References

SOCIAL ENVIRONMENT

WORKING ENVIRONMENT

TEAM ROLE EXPOSURE

FinancialAdvisor

TeamManager

TEAM ROLE EXPOSURE

Area RISK

TEAM ROLE EXPOSURE

Area LEGAL

Area FINANCE

Marketingandor

ManagerConsultant

wwwthemekongcluborg

Foreword

Modern Slavery

Background






Business Risk









Conclusions

The Mekong Club

References

SOCIAL ENVIRONMENT

WORKING ENVIRONMENT

TEAM ROLE EXPOSURE

FinancialAdvisor

TeamManager

TEAM ROLE EXPOSURE

Area RISK

TEAM ROLE EXPOSURE

Area LEGAL

Area FINANCE

Marketingandor

ManagerConsultant

wwwthemekongcluborg

Foreword

Modern Slavery

Background






Business Risk









Conclusions

The Mekong Club

References

SOCIAL ENVIRONMENT

WORKING ENVIRONMENT

TEAM ROLE EXPOSURE

FinancialAdvisor

TeamManager

TEAM ROLE EXPOSURE

Area RISK

TEAM ROLE EXPOSURE

Area LEGAL

Area FINANCE

Marketingandor

ManagerConsultant

wwwthemekongcluborg

Foreword

Modern Slavery

Background






Business Risk









Conclusions

The Mekong Club

References

SOCIAL ENVIRONMENT

WORKING ENVIRONMENT

TEAM ROLE EXPOSURE

FinancialAdvisor

TeamManager

TEAM ROLE EXPOSURE

Area RISK

TEAM ROLE EXPOSURE

Area LEGAL

Area FINANCE

Marketingandor

ManagerConsultant

wwwthemekongcluborg

Foreword

Modern Slavery

Background






Business Risk









Conclusions

The Mekong Club

References

SOCIAL ENVIRONMENT

WORKING ENVIRONMENT

TEAM ROLE EXPOSURE

FinancialAdvisor

TeamManager

TEAM ROLE EXPOSURE

Area RISK

TEAM ROLE EXPOSURE

Area LEGAL

Area FINANCE

Marketingandor

ManagerConsultant

wwwthemekongcluborg

Foreword

Modern Slavery

Background






Business Risk









Conclusions

The Mekong Club

References

SOCIAL ENVIRONMENT

WORKING ENVIRONMENT

TEAM ROLE EXPOSURE

FinancialAdvisor

TeamManager

TEAM ROLE EXPOSURE

Area RISK

TEAM ROLE EXPOSURE

Area LEGAL

Area FINANCE

Marketingandor

ManagerConsultant

wwwthemekongcluborg

Foreword

Modern Slavery

Background






Business Risk









Conclusions

The Mekong Club

References

TEAM ROLE EXPOSURE

FinancialAdvisor

TeamManager

TEAM ROLE EXPOSURE

Area RISK

TEAM ROLE EXPOSURE

Area LEGAL

Area FINANCE

Marketingandor

ManagerConsultant

wwwthemekongcluborg

Foreword

Modern Slavery

Background






Business Risk









Conclusions

The Mekong Club

References

TEAM ROLE EXPOSURE

FinancialAdvisor

TeamManager

TEAM ROLE EXPOSURE

Area RISK

TEAM ROLE EXPOSURE

Area LEGAL

Area FINANCE

Marketingandor

ManagerConsultant

wwwthemekongcluborg

Foreword

Modern Slavery

Background






Business Risk









Conclusions

The Mekong Club

References

TEAM ROLE EXPOSURE

FinancialAdvisor

TeamManager

TEAM ROLE EXPOSURE

Area RISK

TEAM ROLE EXPOSURE

Area LEGAL

Area FINANCE

Marketingandor

ManagerConsultant

wwwthemekongcluborg

Foreword

Modern Slavery

Background






Business Risk









Conclusions

The Mekong Club

References

TEAM ROLE EXPOSURE

Area RISK

TEAM ROLE EXPOSURE

Area LEGAL

Area FINANCE

Marketingandor

ManagerConsultant

wwwthemekongcluborg

Foreword

Modern Slavery

Background






Business Risk









Conclusions

The Mekong Club

References

TEAM ROLE EXPOSURE

Area LEGAL

Area FINANCE

Marketingandor

ManagerConsultant

wwwthemekongcluborg

Foreword

Modern Slavery

Background






Business Risk









Conclusions

The Mekong Club

References

wwwthemekongcluborg

Foreword

Modern Slavery

Background






Business Risk









Conclusions

The Mekong Club

References

wwwthemekongcluborg

Foreword

Modern Slavery

Background






Business Risk









Conclusions

The Mekong Club

References

wwwthemekongcluborg

Foreword

Modern Slavery

Background






Business Risk









Conclusions

The Mekong Club

References

wwwthemekongcluborg

Foreword

Modern Slavery

Background






Business Risk









Conclusions

The Mekong Club

References

wwwthemekongcluborg

Foreword

Modern Slavery

Background






Business Risk









Conclusions

The Mekong Club

References

wwwthemekongcluborg

Foreword

Modern Slavery

Background






Business Risk









Conclusions

The Mekong Club

References