Asia-based non-profit the Mekong Club has released a report offering five recommendations to help financial institutions (FIs) detect and mitigate the risks of modern slavery. The organisation collaborates with the private sector to tackle modern slavery and related issues, including human trafficking and forced labour. The five recommendations and best practice suggestions included addressing modern slavery in daily operations, staff training, and dialogue with regulators. The Mekong Club underlined that regulatory frameworks often lacked sufficient emphasis on addressing modern slavery, with anti-money laundering requirements being “generic and insufficient”. According to the report, modern slavery remains a “highly lucrative crime” with legitimate FIs being utilised to launder the proceeds. The International Labour Organization estimates profits from related activities at US$150 billion annually. There are, however, a number of ways in which FIs can address modern slavery, including by analysing industries, business types, and locations that pose high risks. In addition, the report called for more funds to be allocated globally to eradicate forced labour and modern slavery. So far, major foreign aid donors worldwide have contributed approximately US$350 million to anti-human trafficking programmes, which represents just 0.2% percent of the resources amassed by traffickers. The Mekong Club also suggested FIs should participate in initiatives aimed at raising industry awareness globally, share success stories and challenges to facilitate collective learning, and encourage senior management and employees to volunteer in NGO, governmental, and social-activist initiatives that address modern slavery.
Mekong Club published a new report offering recommendations, typologies and indicators to help FIs address modern slavery risks.https://t.co/HlVxw5oDGF
— Regulation Asia (@RegulationAsia) August 13, 2024
