BAE Systems has recently published ‘The 2021 Global State of Anti-Money Laundering Report: Is compliance creating an industry own goal?’. The report identifies that human trafficking is one of the top 5 biggest concerns for financial institutions such as banks and insurers.
The report, quoting the UNODC, addresses the worsening of the ‘trend’ human trafficking caused by the pandemic, with lockdowns and curfews driving crime underground and limiting the abilities of NGOs and governments to help victims.
Findings from the report highlights that 77% of compliance teams are not confident in stopping crimes linked to human trafficking, and 81% said the same about crimes linked to sexual exploitation.
You can find the full report on the BAE Systems website here.
Philippa Southwell, HTMSE’s founder, appeared on GB News for a live interview during which she discussed modern slavery and human trafficking in the UK’s textiles and garment industry. She focused on the exploitation in fashion as well as the legislation covering business modern slavery compliance.
Under the Modern Slavery Act 2015, Section 54, companies with a total annual turnover of over 36 million, are required to publish a modern slavery statement setting out the steps, if any, they have undertaken in the past year to prevent the risks modern slavery and human trafficking in their business and supply chains. The only formal requirements for the modern slavery compliance statement are that it is signed by a senior member of the organisation, such as a director, and that it is published in a prominent place on the organisation’s website.
During her interview, Philippa discussed the lack of implementation and enforcement of our legislation against non-compliant companies.
‘Forced Labour in Supply Chains’ event, organised by women’s rights organisation Romildamor, will be held on 12th August 2021. Philippa Southwell, HTMSE’s founder, will be attending and speaking on modern slavey compliance and ethical supply chains during the panel discussion along with Katharine Bryan, who is a Modern Slavery Research and Policy Manager at the Walk Free Foundation.
The discussion will address the issues of modern slavery and human trafficking in supply chains, their existence in the fashion industries, as well as business human rights and measures to rectify human rights violations in supply chains.
To sign up and for further information about the event, please see here.
As the G7 meeting gets underway, the Independent Anti-Slavery Commissioner, Dame Sara Thornton and the CEO of the Global Fund to End Modern Slavery, Alex Their, appeal to world leaders to prioritise a coordinated approach on tackling the global issue of forced labour in supply chains.
Writing in an article in the Red Box section of The Times, they recommend specific measures and commitments to solve modern day slavery, emphasising that it requires and investment of capital and political will. They appeal to the G7 leaders to condemn forced labour in goods and services in their supply chains and commit to enforcing this.
It is proposed that G7 agree on specific and measurable commitments, such as eradication of forced labour in the G7 supply chains by 2025, and worldwide by 2030. Then, they should agree on steps to harmonise their laws and standards, followed by increase in investment in the countries trying to do the right thing. Lastly, the article calls for a ban to all state-controlled forced labour.
To read the full article by the Independent Anti-Slavery Commissioner and CEO of the Global Fund to End Modern Slavery, please see here.
The UK, Australia, Canada, New Zealand and the USA have made progress in the movement to expel modern slavery and labour exploitation from global supply chains.
These five partner countries have created a set of 4 principles designed for nations all over the world to adopt, in order to promote ethical supply chain compliance within their jurisdictions. The principles are aimed at policy level, addressing both public and private sector procurement, supply chains, recruitment and encourages the need for cooperation between such actors.
The four principles are as follows:
Governments should take steps to prevent and address human trafficking in government procurement practices
- analyse, develop and implement measures to identify, prevent and reduce the risk of human trafficking in government procurement supply chains
- provide tools and incentives and adopt risk assessment policies and procedures that require their procurement officers and contractors to assess the nature and extent of potential exposure to human trafficking in their supply chains
- take targeted action, including adopting appropriate due diligence processes, to identify, prevent, mitigate, remedy, and account on how they address human trafficking
Governments should encourage the private sector to prevent and address human trafficking in its supply chains
- work in partnership with business, workers and survivors to set clear expectations for private sector entities on their responsibility to conduct appropriate due diligence in their supply chains to identify, prevent and mitigate human trafficking
- provide tools and incentives to the private sector to encourage meaningful action and public reporting of their efforts, including through programmes policies or legislation
Governments should advance responsible recruitment policies and practices
- advance responsible recruitment practices, including by implementing polices that incentivise and support responsible practice, and by support initiatives such as the ‘Employer Pays Principle’
- contribute to the growing knowledge base of promising practices for protecting workers from fraud and exploitation in the recruitment process
Governments should strive for harmonisation
- make reasonable efforts to share information and work with other committed governments to align existing and proposed laws, regulations and polices to combat human trafficking in global supply chains
The UK, leading global efforts in anti-slavery policy, is encouraging governments at the UN General Assembly to adopt these principles. By leveraging the combined $600 billion purchasing power of the partnered nations there is the capital to influence high-level actors in both public and private sectors.
The principles provide a clear and progressive framework for cooperating governments to aim towards. The major drawback, however, is the lack of enforcement of these principles, which in many instances is controlled by legislation. However, for these principles to be effective in practice rather than theory, strict and coherent sanctions are critical. The further challenge is to address cross border transactions, and encourage non-cooperative countries that produce the majority of global slavery statistics to adopt and enforce such principles.