Editorial: Modern slavery coming out of the shadow and its link to money laundering
| Date | 20 March 2024 |
| Pages | 429-431 |
| DOI | https://doi.org/10.1108/JMLC-05-2024-205 |
| Published date | 20 March 2024 |
| Subject Matter | Accounting & finance,Financial risk/company failure,Financial compliance/regulation,Financial crime |
| Author | Maria Krambia Kapardis |
Editorial: Modern slavery coming
out of the shadow and its link
to money laundering
The wars in Israel and Ukraine have putthe focus on the exploitation of vulnerable women
and children. These people are threatened or are subject to violent acts, while others are
victims of manipulation, human trafficking, sex trafficking and organ harvesting. Thus, in
recent years, the focus of concern and attentionhas turned towards modern slavery.
As highlighted in the introduction to the Palgrave Handbook on Modern Slavery
(Krambia Kapardis et al.,2024), modern slavery is a multidimensional and multifacedreality
with roots transnationally and internationally. It encompasses various types of oppressive
and dehumanizing behaviours, including human trafficking, forced labour, sex trafficking,
organ harvesting and trafficking, forced marriage, debt bondage and forced migration.
Wilkinson in Chapter 17 of the abovementioned handbook highlights that in 2021–2022 in
the UK alone, 2,866 individuals were identified as survivors of modern slavery offenses
compared to just under 110 convictions. Globally, according to the Global Slavery Index
(Walk Free, 2022), 49.6 million people in 2021 were living in modern slavery across the
world. Furthermore, 63% of the 27.6 millionpeople subjected to forced labour are exploited
in private economic sectors other than commercial sexual exploitation, including services,
manufacturing, construction,agriculture and domestic work, versus 23% who are subjected
to commercial sexual exploitation(ILO, 2022).
It has been estimated that proceeds from modern slavery amount to US$150.2bn
annually (Hodal, 2019), and we can say for certainty that because modern slavery is
increasing, so will the proceeds of the crime. The estimated amount is furtherbroken down
(ILO, 2022) into forced sexual exploitation at US$99bn, forced labour exploitation at US
$51.2bn (of which US$43.4bn was generatedby non-domestic labour), and domestic work at
US$7.9bn. Furthermore,the ILO (2022) estimated that the global average profit per victim of
human trafficking varied based on the type of exploitation, ranging from US$21,800
annually for sexual exploitation down to US$2,300 annually for domestic work. Proceeds
generated by illegal organ harvesting are not included in the ILO figures but have been
estimated, conservatively,to be between US$840m and US$1.7bn annually [Global Financial
Integrity (GFI), 2017]. As Naheem (2021, p. 491) has stated, the proceeds from modern
slavery make this industry “the third-largest criminal enterprise in the world, after drug
trafficking and counterfeiting”.
These proceeds of crime need to be “cleaned”and be put back into the market. Naheem
(2021, p. 494) drew attention to the fact that “amongst the most integral operations in the
supply chain of trafficking organisationsis the specialised service of money laundering and
document fraud”. Money launderingand document fraud ensures that the proceeds of crime
can be “moved back for sales in cross-border and transregional operations to the source
organisations while also ensuring that law enforcement are unable to detect victims”
(Picarelli, 2009,p. 115).
The modern slavery offender’s goal is to integrate or legitimize the proceeds derived
from human trafficking, sex trafficking, etc. In some cases, the syndicates plan to finance
future crimes (locate more womenor girls so they can use them for sex trafficking) or bribe
government officials or bank employees to turn a blind eye. At the same time, the offenders
Editorial
429
Journalof Money Laundering
Control
Vol.27 No. 3, 2024
pp. 429-431
© Emerald Publishing Limited
1368-5201
DOI 10.1108/JMLC-05-2024-205
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