Human trafficking
Also called trafficking in persons, trafficking in human beings
Human trafficking is the recruitment, transport or holding of people by force, fraud or coercion in order to exploit them, for example through forced labour or sexual exploitation. It is a predicate offence for money laundering. Traffickers rely on bank accounts, money transfers and front businesses to collect and move the proceeds.
How it works
Traffickers often control victims' bank accounts and cards, so one person may manage many accounts or one address may link several unrelated customers. Proceeds flow through cash-intensive or front businesses such as massage parlours, nail bars, car washes and employment agencies. Typical patterns include wages paid in and withdrawn at once, payments for accommodation, travel and online advertising, and transfers to the countries where victims were recruited.
Banks build these indicators into transaction monitoring, customer due diligence and staff training, and file suspicious activity reports when they see them. Supervisors and financial intelligence units publish red flag lists and ask firms to use set keywords in reports so cases can be linked. Firms also assess forced labour risk in their own supply chains and in the companies they finance.
The rules
Creates the offences of slavery, servitude and forced labour and of arranging or facilitating travel of another person with a view to their exploitation.
All persons in England and WalesSets minimum definitions of trafficking offences and penalties; the 2024 amendments add forced marriage, illegal adoption and exploitation of surrogacy as forms of exploitation.
EU Member StatesCreated federal offences of sex trafficking and forced labour and the framework for prosecuting traffickers and protecting victims.
All persons subject to US federal lawSets out financial and behavioural indicators and typologies of human trafficking and asks institutions to reference the advisory in suspicious activity reports.
US financial institutions subject to the Bank Secrecy ActCommon questions
Why is human trafficking a financial crime issue?
Trafficking generates proceeds that must be collected, moved and laundered through the financial system. That makes it a predicate offence for money laundering, and banks are often well placed to spot it.
What are common red flags in bank accounts?
One person controlling many accounts, several customers sharing one address or phone, wages withdrawn as soon as they arrive, and frequent payments for accommodation, travel or online adverts are common signs.
Is human trafficking the same as people smuggling?
No. Smuggling is moving someone across a border illegally, usually with their consent. Trafficking involves exploiting the person through force, fraud or coercion, and it can happen without any border crossing.
