The cross-border flow of trafficking proceeds has far-reaching impacts, says report
New research suggests financial investigations are critical to trafficking cases, the UK fails to act on reports of labour abuse in its agriculture sector, and “fair trade” labels on fresh produce items could be misleading.
Enhanced understanding and investigation of illicit financial flows (IFFs) would be a crucial step towards more effective disruption, prosecution and dismantling of trafficking in persons networks, according to a new study. IFFs – financial flows that are illicit in origin, transfer or use, reflect an exchange of value, and cross national borders – are major impediments to sustainable development, diverting resources away from state revenue, promoting impunity, bolstering the financial means of criminals, and eroding criminal justice systems, the authors say. The study was carried out under the Global Action against Trafficking in Persons and Smuggling of Migrants – Asia and the Middle East (GLO.ACT) project – a joint initiative by the EU and the United Nations Office on Drugs and Crime (UNODC), implemented in Afghanistan, Iran, Iraq and Pakistan.
IFFs associated with trafficking in persons arise from the cross-border transfer of costs and payments for acts including the recruitment of trafficking victims and their transportation and accommodation; income from the provision of exploitative services; the exploitation of begging and products produced through exploitation; and income from the sale of a person, including forced marriage. During the data collection process, however, it was clear that investigations of trafficking cases generally do not include financial inquiries, even though this kind of crucial evidence would improve the quality of investigations and ensure the apprehension of not just low-level actors but also the organizers who make the most profit from the offence, the authors say.
However, the majority of trafficking and smuggling cases relating to GLO.ACT countries involve payment and transfer methods that are not easily traceable, such as cash payments or value transfers using the hawala system (an informal trust-based money transfer method). Furthermore, criminals take advantage of developments in technology to stay one step ahead of criminal justice actors – for instance cyber-enabled transnational crimes facilitate cross-border value transfers and generate IFFs from the transfer, management or laundering of crime proceeds. And organized criminal groups, including those involved in trafficking in persons and the smuggling of migrants, routinely use corporations, businesses, charitable organizations or other legal entities to carry out their crimes.
Vigilant intelligence gathering on the developments and trends of the technology used in IFFs is therefore an essential measure for the effective investigation and prosecution of trafficking in persons and migrant smuggling, the report states. Specialized training of relevant criminal justice actors, including in the detection of such online criminal activities and how to collect and preserve electronic evidence, is also crucial. When investigating cases involving trafficking and smuggling, national authorities should be trained in identifying indicators in the scenarios, modalities and types of actors that are known to generate higher levels of illicit income. And ensuring that legal entities cannot be used to shield criminals from liability, and that their complex structures cannot be used to conceal their illegal activities and its IFFs, is another important component of combatting transnational organized crime.
There is also a need for closer cooperation between governments and the private sector, especially value transfer service providers, to track illicit financial flows from human trafficking, the authors say. This may entail the enactment of a legal provision or the establishment of a framework for such cooperation, and the designation of focal points to facilitate mutual sharing of information. Money service businesses and social media platforms have an important role to play in detecting and tracking illicit financial flows, and awareness-raising initiatives and training for private and public sector stakeholders should also take place, including on the financial disruption, transnational cash-courier networks, open-source intelligence, and red flag indicators of trafficking in persons and the smuggling of migrants.
Here’s a round-up of other noteworthy news and initiatives:
An investigation by the Bureau of Investigative Journalism (TBIJ) and The Independent has uncovered evidence suggesting that workers who travelled thousands of miles to fill gaps in the UK’s agriculture workforce were publicly humiliated, not paid for all the hours they worked, and forced to live in sub-standard conditions. The UK Home Office gathered the evidence in secret reports in 2021 and 2022, which it tried to prevent from being made public and were only released after a five-month battle.
The German NGO Network against Trafficking in Human Beings (KOK) has published its fourth data report on trafficking and exploitation in Germany. The report, which is based on data provided by specialized counselling centers for trafficked persons, highlights critical issues related to the rights and protection of trafficked individuals in the country, as around 50 per cent of victims grapple with uncertain or unresolved residence prospects which significantly affect their psychological wellbeing and capacity to assert their legal rights.
A new report by Corporate Accountability Lab investigates labour and human rights violations in Mexico’s San Quintin agro-export sector, focusing on certified “fair trade” and “Responsibly Grown” products sold by major companies. More than 200 worker interviews reveal significant discrepancies between certifications and the actual conditions faced by labourers, shedding light on the shortcomings of multi-stakeholder initiatives in safeguarding human rights in the fresh produce industry.
The Beijing-controlled administration in Macau has opposed a recent decision by the U.S. government concerning the prevention and control of human trafficking on the island. In a statement last week, the government expressed strong dissatisfaction with and opposition to the U.S. decision, saying it was based on “false” claims contained in the 2023 Trafficking in Persons Report released by the U.S. State Department earlier this year, media reports said.
A new documentary explores the harrowing journey made by Asif, a young man who was trafficked through Iran and Turkey in an illegal attempt to reach Europe. Berlin, by first-time Pakistani filmmaker Muhammad Fawad, also explores similar attempts made by disaffected Pakistani youth and the Afghani LGBTQ+ community fleeing the Taliban. The film will play online across the U.S. as part of the Workers Unite Film Festival, from 3 to 10 November (contains images of a graphic nature that some may find disturbing).
In the week of Halloween, American TV host John Oliver focused the main segment of his show on chocolate, cocoa farming, and the way in which big brands continue to profit from the labour of children performing hazardous work.
Anti-Trafficking Review has published a new call for papers for a special issue on the theme of “Family and Community”. The aim of this issue will be to explore the experiences and needs of family
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