Swamy Ramchandran, Director, Product Marketing and Strategy, Oracle Financial Services. Sweta Chauhan, Principal Product Marketer, Oracle Financial Services
Human trafficking networks depend on an elaborate system of conspiracy and deceit to perpetuate and profit from their insidious crimes. Exposing and halting these conspiracies and the flow of money that supports them is essential to turning the tide on this global tragedy. Advanced financial crime technology provides powerful tools and new hope for those on the front lines of identifying and halting increasingly sophisticated trafficking networks.
In Part 1 of this two-part series, we discuss how governments, law enforcement agencies, financial institutions, and other organizations can help disrupt human trafficking by following the flow of money exchanging hands. In Part 2, we delve into how financial crime technology can help bring down human trafficking.
Human trafficking is a broad term encompassing sexual exploitation, modern slavery, debt bondage, and forced criminal activity. The volume and human impact of trafficking are at an all-time high, as is the monetary gain for traffickers and their facilitators. Second, only to drug trafficking, human trafficking is one of the fastest growing transnational crime categories and most profitable financial crimes.
The statistics are staggering, and it’s important to remember that they present only a glimpse into this highly complex and clandestine enterprise and cannot even begin to capture the human impact. According to the International Labour Organization:
The financial activity generated by human trafficking includes transportation, logistics, and the accommodation costs of victims; proceeds generated by their exploitation; and bribery and corrupt dealings amongst the facilitators. Despite the obvious correlation between human trafficking and financial crime, the implicit connection is often overlooked. Identifying and monitoring transaction patterns can detect crimes and be a significant disruptive force to such activities—and financial institutions are uniquely positioned to play a major role in supporting this vital work.
Identifying financial trails and suspicious illicit transactions is key to identifying criminal networks and combating human trafficking. These initiatives are mammoth undertakings that require extensive resources and expertise in the application of advanced technology. The success of these important efforts also depends on the proactive commitment and close collaboration between all critical stakeholders, including governments, law enforcement agencies, financial services institutions, technology providers, non-governmental organizations (NGOs), communities, and survivors.
Let’s look at how organizations and initiatives are converging to apply an anti-financial crime strategy to combat human trafficking:
Institutions that implement and strengthen innovative AML compliance solutions can leverage big data, advanced analytics, artificial intelligence, network analysis, and other modern technologies to screen customers and entities, monitor transactions, and identify and report suspicious behaviors and transactions.
Human trafficking ultimately relies heavily on legitimate financial infrastructures and institutions. Therefore, deploying an anti-financial crime lens and approach offers the best-known opportunity to disrupt human trafficking. The financial footprints, illicit trails in the system, and other transactional data patterns are vital to identifying the source and proceeds of these crimes.
The journey ahead is onerous, but all involved parties—governments, law enforcement, financial institutions, NGOs, and local communities—are more committed and equipped than ever to combat human trafficking in all its forms.
Disclaimer: The information, views, and opinions presented hereof by the authors are solely theirs and are for general information only. These do not constitute legal advice; Oracle disclaims and excludes any liability in respect of the contents or for action taken based on this information.