Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT)
Strengthening compliance with anti-money laundering and counter-terrorist financing (AML/CFT) regimes is outlined as a key action in the Blueprint. In February 2020, FAST announced the launch of a strategic partnership with the largest international membership organization of financial crime prevention professionals, the Association of Certified Anti-Money Laundering Specialists, to further mobilize professionals working in this field against modern slavery and human trafficking. In June 2020 ACAMS and FAST launched an Official Pledge in support of FAST, encouraging ACAMS’ 80,000 strong membership community in 175 countries and 70 chapters worldwide to commit to taking action in line with the Blueprint.
One way to do this is by completing the FAST/ACAMS online Human Trafficking training certificate, the first such online training course freely available to financial sector professionals and the broader public globally. The course provides an introduction to the steps that financial sector actors should take to meet the growing requirements to identify, report, mitigate and remedy modern slavery and human trafficking risks. It covers anti-money laundering and countering the financing of terrorism obligations; environmental, social and governance (ESG) factors, and human rights and enterprise risk management. It draws on insights from industry leaders and recent cases
The course explains how financial sector stakeholders can work to strengthen compliance with AML/CFT laws to address modern slavery and human trafficking risks. These already extend in most jurisdictions to handling funds generated from modern slavery or human trafficking, though that is not always made explicit by regulators. Where this has been made explicit, for example through specific guidance on these risks or asking questions in Suspicious Activity Reporting forms, up to a 1,000 per cent increase in reporting has ensued. Stronger compliance with AML/CFT rules will also come about through devoting more resources to financial investigations. Transaction analysis tools need to be developed to deal not just with forms of modern slavery in the developed world, such as cross-border sex trafficking, but also those that take place in the developing world, such as debt bondage and domestic servitude.
Other actions proposed by the Blueprint concerning AML/CFT include:
- Strengthening financial investigations: Increase public- and private-sector resources for the financial investigation of modern slavery and human trafficking, commensurate with the scale and gravity of the problem. Regulators, financial intelligence units (FIUs) and private-sector actors should work together to develop better indicators of AML/CFT risks associated with current and emerging forms of modern slavery and human trafficking.
- Strengthening the use of the AML/CFT and sanctions regimes. This could include:
- Fostering public-private and inter-entity information-sharing.
- Developing better indicators, especially of labour trafficking.
- Clarifying expectations through national advisories and guidance.
- FIUs encouraging a focus on this issue within their own jurisdictions, and working together to share information and build knowledge across borders.
- Using the FATF national risk assessment and mutual evaluation process to highlight these issues and develop public-private buy-in for prioritizing anti-slavery and anti-trafficking efforts by AML/CFT actors.
- Strengthening cooperation to enforce international sanctions on human traffickers.
- Developing transaction analysis tools to help identify proceeds of modern slavery and human trafficking in all areas of financial sector activity – banking, remittances, insurance, investment, commodities trading and beyond.
- Learn more about the FAST/ACAMS online training certificate here.
- Go into more depth on all these issues with leading global experts by listening to FAST: The Podcast.
- Engaging survivors is central to implementing FAST Blueprint. Find out more about the survivor leaders who have been involved in FAST in this video.
- Learn more about the connections between global supply chains and modern slavery through this World Economic Forum video where Dr James Cockayne, Director of the FAST Secretariat, presents at Davos.
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