Modern slavery refers to situations where individuals are exploited and controlled by others through force, deception, or coercion, resulting in a loss of freedom and autonomy. This encompasses a range of practices such as human trafficking, forced labor, debt bondage, domestic servitude, and child exploitation. Victims of modern slavery are often subjected to inhumane conditions, threats, and violence, making it difficult for them to escape their circumstances. Despite international laws and efforts to combat it, modern slavery persists globally, affecting millions of people and violating fundamental human rights.

‍

Modern slavery is intricately related to Know Your Customer (KYC) and Know Your Business (KYB) practices because effective KYC procedures help financial institutions and businesses identify and prevent the financing of human trafficking and exploitation. By thoroughly verifying the identity and background of clients, organizations can uncover suspicious activities that may indicate involvement in modern slavery. For instance, unusual transaction patterns, large cash deposits, and payments to high-risk regions can signal potential exploitation networks. Enhanced due diligence is essential for high-risk clients or transactions, enabling companies to detect and report possible links to modern slavery. Thus, robust KYC measures play a crucial role in disrupting the financial flows that sustain modern slavery, protecting vulnerable individuals, and upholding ethical standards in business operations.