By CARLO BOFFA, EU Correspondent
MAJOR global banks have urged financial institutions to make use of a US voluntary information-sharing program to help prevent human trafficking during the FIFA World Cup.
“The Wolfsberg Group strongly encourages financial institutions of all sizes to leverage fully the 314b framework to share information and collaborate on cases,” the group said in a statement.
The framework, established under the Patriot Act, allows US financial institutions to securely share customer and transaction data with one another to detect money laundering and terrorist financing.
Banks and other financial institutions have partnered with specialist NGOs, information service providers and law enforcement ahead of the tournament.
The Wolfsberg Group represents 12 global banks.
FinCEN’s warning
FinCEN, the US Treasury’s anti-financial crime unit, urged in May “increased vigilance” by banks and other financial firms near host cities during the event.
“Seemingly legitimate businesses in major event locations may use exploitative employment of victims to meet the increased demand for labor and services during these events,” the agency said.
Major sporting events also attract sex trafficking activity, which can be identified through unusual transaction patterns.
“Victims may be forced to travel frequently to meet clients for commercial sex acts within short timeframes, and victims or their traffickers may have unusually large travel-related transactions, “ FinCEN said.
Financial institutions should also make use of the National Human Trafficking Hotline to report suspicious activity, the Wolfsberg Group said.
“Leveraging the hotline is vital for ensuring cases are triaged to the appropriate federal, state and local law enforcement agencies.”
The risk of heightened human trafficking during large sporting events stems from increased demand for labour, AML Intelligence Senior Correspondent Paul O’Donoughe said in the latest episode of the ‘Collared’ podcast.
“Officials are worried that migrant workers end up being exploited and the traffickers will end up just taking profits for themselves.”
The episode is available right now on:
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