Organizations are increasingly fighting modern slavery in supply chains, thanks to a decade of regulatory momentum. But how can you eliminate parties connected to modern slavery from your network?
Identifying modern slavery risks in customer networks requires screening that is holistic and risk-based. We recommend a four-pronged approach.
Modern slavery, from sex trafficking to state-sponsored forced labor, permeates the global economy. Modern slavery might not be happening in your organization, but it is still important to identify supply chain risks — these could come from direct partners or peripheral stakeholders, such as auditors.
Orbis corporate structure data enables you to identify risks at each node in the supply chain, beyond your direct client or tier one supplier — such intelligence is imperative to assessing and combating modern slavery risks. The synthesis of Orbis and GRID in Compliance Catalyst 2 gives you a 360-degree view of labor and human trafficking risks in supply chains and corporate structures.
As regulations grow in number, regulatory bodies can share more data. Doing so enhances institutions’ ability to accurately assess modern slavery risk in their compliance due diligence.
GRID contains several regulatory lists related to modern slavery. These are categorized to allow focused screening against every risk stage, from allegations to convictions. The lists can be uniquely configured for onboarding or portfolio monitoring.
Other lists include related United Nations sanctions lists and local modern slavery lists for organizations and individuals.
The global trend toward combating modern slavery masks uneven development and roll-out of national and regional regulations. Enforcement also varies between jurisdictions, which may prosecute and report modern slavery according to their own typologies and criminal frameworks.
GRID ingests and categorizes adverse media related to modern slavery typologies including child pornography, illegal organ trading, migrant smuggling, wage theft or debt bondage, and workplace misconduct. These typologies are wrapped into one risk configuration intended to cover all issues of modern slavery from an international perspective, regardless of sovereign legal frameworks. This out-of-the-box risk configuration is ideal for multinational corporations with a wide footprint. Clients have premium options to broaden or narrow their screening scope depending on their portfolio and operational needs.
Enhanced research collections add value to assessments of entity risk as it relates to broader anti-money laundering risks. Enhanced research collections include:
The goal of compliance is not to detect money laundering, but to find underlying criminal industries, such as modern slavery, that perpetuate illicit financial flows. You can adopt this approach at scale while maintaining operational efficiencies by using our best-in-class features:
If you have any questions about MA’s solutions or would like to discuss KYC for your business, use our contact form.