Working together: understanding trafficking better through public-private cooperation (4/4)

It is essential to collect accurate, reliable and updated data in order to understand the business model of traffickers and ensure that the fight against trafficking networks is effective. In addition, as human trafficking is a crime that generates revenues and financial flows, financial institutions – banks, money transfer companies (Western Union, MoneyGram…), etc. – are natural partners for authorities responsible for AML/CFT.

Mobilising financial institutions

Financial institutions are subject to a specific regulation to prevent and detect money laundering and terrorist financing and must report a transaction that appears to be illicit. They can also be directly contacted by financial intelligence units to communicate information on a suspicious financial transaction. Through their size, certain banks also have a wealth of highly sophisticated financial data and technologies, which are all resources that can facilitate the work of public actors, pointed out David Artingstall, an AML/CFT expert and Associate Fellow at RUSI.

However, it is clear that the communication is not yet optimal. Information is not systematically shared in a format understandable by the other party, pointed out Michael Fowler, from the Financial Action Task Force (FATF/GAFI). To see clearly among the millions of daily financial transactions, “we have to be told the type of information we need to look for”, added Alan Perkins from Western Union. Financial intelligence units need to specify their need by defining specific red flags on trafficking that require attention when an account is opened or a subsequent transaction is made. Joint work is crucial, but this first and foremost requires building a solid relationship of trust between the public and private sectors, with a strong investment by the people concerned. It is also important to strengthen cooperation with new actors affected by illicit financial flows. This is the case, for example, for microfinance institutions that invest in the creation of mechanisms to fight against money laundering and terrorist financing, alongside their activities intrinsically linked to the economic integration of certain communities.

Reporting information from the field

In addition to banks, other actors are in a position to work with the FIUs and authorities in charge of investigations. The latter are often faced with a lack of knowledge of trafficking networks. Researchers, NGOs and even investigative journalists are in direct contact with the victims and sometimes with the traffickers and are well placed to collect information from the field. The data collected allow the authorities to map the trafficking networks and understand better how criminal groups operate, including in financial terms (financing methods, circuit of financial flows, etc.). For example, Elvis Asiamah, an analyst at World Check, presented the extremely varied financing methods of the Somalian group Al Shabab, from coal to drug trafficking and including taxation, extortion, sugar, checkpoints…

While exchanges are crucial, there remains the question of “how”, as public actors and civil society are not always used to working together. Non-profit organisations are sometimes perceived more as a risk than as partners, due to the fact that certain associations are involved in financing terrorism. Yet through their local roots, they can contribute to identifying the “pockets of risk” that exist and to establishing good practices to prevent money laundering and terrorist financing, explained Amin Ghali and Yasmine Haloui, whose organisations are members of the Global NPO Coalition on FATF. It is therefore important for actors to get to know each other better and to define models on which to base the exchange of information in order to increase the effectiveness of the fight against human trafficking. Other actors can also play a pivotal role: to contribute to facilitating exchanges, the NGO Liberty Shared (based in Hong Kong) acts as a link between the authorities in charge of AML/CFT and the field. “We facilitate the reporting of information and we contribute to building typologies”, explained Archana Kochana, who is Head of the NGO’s Legal Department. All these partnerships are worth developing to fight more effectively against human trafficking.