This UNU-CPR Discussion Paper examines the potential of location risk-based transaction monitoring for financial flows from human trafficking and exploitation, as well as related money laundering activities. It presents different approaches that use crime-specific high-risk locations as red flags for the detection of relevant activities. They include the application of customized high-risk country lists and the increased monitoring of transaction channels between typical source countries and destination countries of trafficked individuals.
The paper illustrates how a refined search for the involvement of specific regions and cities and an advanced monitoring of suspicious transactions along known trafficking routes – which we term a ‘Location-centred approach’ - can substantially increase the accuracy of indications for human trafficking and exploitative crimes.
After a promising pilot in Germany in 2020, the concept was tested and further developed by more than 20 organizations in a project within the Europol Financial Intelligence Public-Private Partnership. For an overview of the key elements of the ‘Location-Centred Approach’ see the Annex on Page 20.
To illustrate the potential of the approach, the paper refers to ongoing practical work and related findings. To the extent possible, the case studies contain detailed information on the amounts of the transactions concerned, the criminal proceeds related to them, as well as indications for consistent typologies of financial activities accompanying trafficking crimes. The concept has been developed for human trafficking and exploitative crimes, but it may well be transferable to other forms of trafficking crimes such as drug trafficking, illegal arms trafficking, wildlife crime, and trafficking in cultural property.
Access "Tackling Illicit Financial Flows at Source: Adopting a ‘Location-Centred Approach’ to Address Modern Slavery and Human Trafficking" here.
