There is a high risk of modern slavery involved in the financial services industry. Pressure is growing on financial service providers to address risks of modern slavery across their entire value chain, including their investments, insurance products, procurement activities and customers.
Risk factors for financial services include lack of transparency in supply chains, low-tier suppliers in high-risk geographies and customers utilising services for criminal purposes.
Not only are financial institutions exposed to modern slavery risks within their supply chain, they are also at risk of having hidden risks within their business practices as illegal profits are often laundered through legitimate financial services.
Due to their influence over global business, companies within this sector are uniquely positioned to go beyond eliminating risks to actively fighting against the role slavery plays in the economy today.