AML Spotlight: Human trafficking

Human trafficking is a global crime that trades in people and exploits them for profit. It is a serious violation of human rights that affects people of all genders, ages, and backgrounds. In the legal profession, it is important to understand red flags and risks associated with facilitating human trafficking, and to take steps to prevent it.

Human trafficking has many forms, including exploitation in the sex, entertainment, and hospitality industries, as well as in domestic work and forced marriages. Victims are often forced to work in factories, on construction sites, in nail salons, takeaway restaurants or in the agricultural sector without pay or with an inadequate salary, living in fear of violence and often in inhumane conditions. Some victims are even tricked or coerced into having their organs removed.

August 2023 saw reports from Police Scotland that human trafficking and exploitation cases in Scotland were at their highest since records began. Albanian and Vietnamese nationals were reported to be among the most trafficked nationalities. This followed from the imprisonment of four for a collective 31 years over trafficking vulnerable women into Scotland for prostitution.

If you knowingly assist traffickers in their activities, you can be held criminally liable for your actions. It is important to be aware of the signs of human trafficking and to report any suspicions to the relevant authorities.

Facilitating human trafficking is a serious violation of human rights and can have severe consequences for victims. The legal profession has a responsibility to uphold human rights and to ensure that their actions do not contribute to human trafficking.

Individuals or practices who are found to be involved in human trafficking can suffer significant damage to their reputation and may also face disciplinary action. It is important to maintain high ethical standards and to avoid any actions that could be seen as facilitating human trafficking.

When assessing the risk of a client and matter, there are several risks and red flags associated with facilitating human trafficking to consider. These include:

• Services offered: Whilst it is possible that all legal services may be exposed to human trafficking exploitation, the key areas are immigration, criminal, employment and conveyancing.
• Client risk indicators: The involvement of higher risk jurisdictions associated with victims and offenders (such as Albania, China, India, Lithuania, Pakistan, Romania, Thailand, and Vietnam). The use of cash-based business or leading a heavily cash-based way of life, which may be identified through analysis of source of funds documentation and bank statements. Any adverse media reported on any clients, third parties or counterparties should also be considered.
• Business sectors: Agriculture, cleaning or any cash intensive business such as beauty salons, nail bars, spas, massage parlours and restaurants are of higher risk. Both the construction and the transport/logistics sectors are also higher risk.
• Unusual business activity: Businesses with low-paid manual labour, irregular hours of pay, no national insurance contributions, lack of staff costs, providing round sum salaries. If there is an unclear source of funds/wealth or the use of unclear beneficial ownership structures, this can also be a red flag.
• Payment systems: Are payments diverted through various countries? Is there a lot of cash-based transfers to higher risk countries ie use of money service businesses or value transfer systems?

Conveyancing is a key risk area which may be exposed to human trafficking exploitation. Purchased properties can also be used as smuggling posts for trafficked individuals. When undertaking conveyancing matters, practices should be mindful of the involvement of:

• a foreign national from a higher risk country
• any unexplained income
• false documentation
• the property type not making sense for its intended purpose
• multiple property purchases of low value in less desirable places
• cash lifestyles with unexplained investments into property
• purchasing property on behalf of a higher risk business, such as factories, construction sites, nail salons, takeaway restaurants.

In the legal profession, there are several steps you can take to help prevent human trafficking:

Be aware of the signs: Learn to recognise the signs of human trafficking, such as individuals who are not free to leave their place of work or who are subjected to physical or sexual abuse. More information on identifying the risks of human trafficking can be found at the links and resources below.

Report suspicions: If you suspect that human trafficking is taking place, report your suspicions to the relevant authorities. This would typically involve reporting a Suspicious Activity Report (SARs) to the National Crime Agency. You should also consider if it is appropriate to continue to act for your client or not. It is important to lodge these SARs with the relevant and correct Glossary Codes.
It may also be appropriate to report such suspicions to Police Scotland, Crimestoppers or the Modern Slavery helpline. All relevant contact details and methods are available within the list of links and resources below.

Maintain high ethical standards: Always attempt to avoid any actions that could be seen as facilitating human trafficking. This includes ensuring that your clients are not involved in any illegal activities.

Victim support: If you encounter victims of human trafficking, provide them with support and assistance. This may involve referring them to relevant support services.

Human trafficking is a serious crime that violates human rights and affects people of all genders, ages, and backgrounds. It is important to be aware of the risks associated with facilitating human trafficking and to take steps to prevent it. By recognising the signs of human trafficking, reporting suspicions, upholding ethical standards, and supporting victims, you can play an important role in preventing this crime.

UK Government Briefing Note on Modern Slavery

National Crime Agency Modern Slavery & Human Trafficking Website

National Crime Agency Modern Slavery Statement 2022/2023

Police Scotland Human Trafficking Website

Anti-Slavery International’s Website

Modern Slavery & Exploitation Helpline

College of Policing Risk & Identification for Human Trafficking