In May 2022, the Ambassador of Liechtenstein H.E. Isabel Frommelt-Gottschald invited to an expert briefing at the Berlin Hilton. The topic: information on measures in the financial sector to combat the generation of revenue from slavery and human trafficking. The so-called “Liechtenstein Initiative” was significantly launched by Liechtenstein in September 2018, it is committed to combat human trafficking and modern slavery and is composed of representatives of the governments of Liechtenstein, Australia and the Netherlands with the United Nations University Centre for Policy Research, as well as a consortium of banks, foundations and associations. The Liechtenstein Bankers Association and its members are part of this public-private partnership.
After an introductory talk on the Finance Against Slavery and Trafficking (FAST) initiative by Daniel Thelesklaf, who joined from New York, lawyer Dr Thomas Voland outlined the new supply chain law, which from January 2023 will oblige German companies to produce goods that are free of human trafficking, slave-like working conditions and exploitation. Public prosecutor Christine Höfele from the Berlin public prosecutor’s office focused on undeclared work in the construction industry, human trafficking in the sex industry and temporary work in the service sector in Germany and deplored that many things could not be prosecuted due to a lack of staff.
150 billion US dollars annually
The United Nations estimates that more than 40 million people today live in captivity, are exploited through forced labour or suffer some other form of servitude. In many cases, the goods they produce – including electronics, textiles, food – end up in the normal channels of distribution. According to estimates by the United Nations International Labour Organisation, slavery and human trafficking generate around 150 billion US dollars a year worldwide. Money from such practices flows through the banking system or finances goods and services that come from supply chains where modern slavery and human trafficking are part of the business. According to studies, modern slavery and human trafficking are now the most common precursors to money laundering and terrorist financing worldwide.
Leading role of the financial sector
Because the financial sector is so closely intertwined with the rest of the economy, action by the financial sector can help change the way the entire global economy functions. Finance Against Slavery and Trafficking (FAST) is a multi-stakeholder initiative based at the United Nations University Centre for Policy Research that aims to mobilise the financial sector against modern slavery and human trafficking.
FAST
Using evidence-based approaches and rigorous analysis, FAST provides financial sector actors with tools and training to take meaningful and sustainable action against modern slavery and human trafficking. Global initiatives and campaigns aim to raise awareness and build momentum, while launching projects, strategies and coalitions with long-term impact.
Global alliance
Through its alliance-building approach, FAST works with organisations around the world, including international banks and regional banking associations, investor groups and exchanges, trade associations, survivor support organisations, regulators and policymakers to combat modern slavery and human trafficking.
30 measures for the financial sector
The Liechtenstein Initiative provides a common framework for collective action that different actors in the financial sector can implement in their own way and at their own pace. It comprises 5 objectives and 30 measures that together form a roadmap for the entire financial sector and its stakeholders, including governments, regulators and the multilateral system. Key actions include optimising and enforcing controls in the financial sector.
www.fastinitiative.org
Text Tanja Schmidt