Modern slavery is the exploitation of people through force, coercion, or deception for profit. It is also a financial crime: it generates hundreds of billions of dollars a year that must be laundered, and banks play a role in detecting and reporting it.
Key takeaways
- Modern slavery is the exploitation of people for profit through force or coercion.
- It is a serious financial crime and a predicate offense for money laundering.
- The ILO estimates 50 million people are in modern slavery worldwide.
- Forced labor generates about $236 billion in illegal profits each year.
- The money is laundered, so financial data can reveal it.
- Banks help detect it by spotting financial red flags and reporting suspicion.
On this page
What it isA financial crimeThe scaleHow the money movesFinancial red flagsLawsThe role of banksHow firms detect itFAQsRead more
50 million
People in modern slavery worldwide
Source: ILO, 2021 estimates
$236 billion
Annual illegal profits from forced labor
Source: ILO, 2024
$800B to $2T
Laundered worldwide each year, including these profits
Source: UNODC
What is modern slavery?
Modern slavery is the exploitation of people who cannot refuse or leave because of force, coercion, or deception. It is an umbrella term covering forced labor, human trafficking, debt bondage, and forced marriage.
It is a grave abuse of human rights, and it is also a business for those who profit from it. That second fact is what brings it into the world of financial crime.
Where there is profit, there is money to hide. Read more: those profits are cleaned through money laundering.
Modern slavery as a financial crime
Modern slavery is a financial crime because it is driven by money. Traffickers exploit people to make a profit, and that profit has to be collected, moved, and hidden.
This makes modern slavery a predicate offense: the underlying crime that produces dirty money for laundering. It also means the money leaves a trail. Wages withheld, fees collected, and profits moved all pass through the financial system, where they can be spotted.
For a bank, this is where it can make a difference. It may never see the exploitation, but it can see the money.
That shift in perspective, from looking for a crime to looking for its money, is what makes financial institutions useful allies against a crime they rarely witness directly.
The scale of modern slavery
The scale is vast, both in human and financial terms. The figures are hard to grasp.
The ILO estimates that 50 million people were living in modern slavery in 2021, including around 28 million in forced labor. Forced labor alone generates about $236 billion in illegal profits each year (ILO, 2024). That money, like other criminal proceeds, has to be laundered to be used.
Those profits are part of the wider flood of criminal money that AML systems exist to catch.
Behind every figure, though, is a person, which is part of what makes this one of the most serious forms of financial crime to detect.
Screen a business and its people
Run one search across sanctions, PEP, and adverse media data to check a customer or business for links to exploitation.
How the money moves
The proceeds of modern slavery move through the financial system in ways that can look ordinary. Recognizing the patterns is the key to catching them.
- Wage accounts. Wages for many workers paid into one account controlled by a trafficker.
- Cash. Large cash deposits from exploitation, often through a front business.
- Recruitment fees. Payments from victims for jobs, travel, or debt.
- Layering. Moving the profits through accounts and businesses to hide their source.
Because the money mixes with legitimate activity, it takes a trained eye and good monitoring to separate it out.
Financial red flags of modern slavery
Certain patterns in financial data can point to modern slavery. None is proof, but each is worth a closer look.
- Many workers’ wages paid into a single account.
- One address or phone number linked to many separate accounts.
- Salary payments that are immediately withdrawn in full.
- A business whose accounts do not match its stated activity.
- Little or no normal personal spending on a worker’s account.
- Payments to recruitment or travel agents that look like debt repayment.
Laws on modern slavery
Modern slavery is a crime everywhere, and some countries add specific duties for businesses. The laws combine criminal offenses with corporate responsibility.
- UK Modern Slavery Act 2015. Criminalizes slavery and trafficking and requires large firms to report on their supply chains.
- US laws. Federal trafficking laws, plus rules against importing goods made with forced labor.
- Financial crime rules. AML laws that treat the proceeds of trafficking as dirty money.
Together, these mean a firm has reasons beyond decency to act: it faces legal duties on both exploitation and the money behind it.
The role of banks and financial firms
Banks sit in an unusual position in the fight against modern slavery. They rarely witness the crime, but they handle the money it produces.
That gives them a chance others do not have. By watching for the financial patterns of exploitation and reporting suspicion, a bank can help uncover trafficking that would otherwise stay hidden. Many financial firms now train staff specifically to spot these signs.
Some banks have gone further, working with law enforcement and anti-slavery charities to sharpen what they look for. The financial angle does not replace the human response, but it adds a set of eyes in a place traffickers cannot easily avoid, the banking system they rely on to collect their money.
How firms detect modern slavery
Firms detect modern slavery mainly by watching for its financial fingerprints and acting on them. The steps mirror wider AML work.
- Train staff. Help teams recognize the financial red flags of exploitation.
- Monitor patterns. Watch for shared details and wage-account patterns.
- Investigate. Look into accounts that show the warning signs.
- Report. File a suspicious activity report and support law enforcement.
Know the warning signs
Use our red flags checklist so staff have a clear guide to the signs of exploitation and other financial crime.
Get an indicative AML risk rating
See where your financial crime risk is concentrated across customers, products, and sectors.
Frequently asked questions
What is modern slavery?
Modern slavery is the exploitation of people who cannot refuse or leave because of force, coercion, or deception. It is an umbrella term covering forced labor, human trafficking, debt bondage, and forced marriage. It is a grave abuse of human rights and also a financial crime, because those who exploit people do so for profit.
Why is modern slavery a financial crime?
Modern slavery is a financial crime because it is driven by money. Traffickers exploit people to make a profit, which has to be collected, moved, and hidden. This makes it a predicate offense for money laundering. It also means the money leaves a trail through the financial system, where banks can spot it.
How many people are in modern slavery?
The ILO estimates that 50 million people were living in modern slavery in 2021, including around 28 million in forced labor and 22 million in forced marriage. Women and children are disproportionately affected. The figure rose by around 10 million compared with the previous estimate for 2016, showing the problem has grown.
How much money does modern slavery generate?
Forced labor generates about $236 billion in illegal profits each year, according to the ILO’s 2024 estimate. This money represents wages effectively stolen from workers through coercion. Like other criminal proceeds, it has to be laundered before it can be used, which is what connects modern slavery to anti-money laundering.
How is the money from modern slavery laundered?
The proceeds move through wage accounts, where many workers’ pay goes into one account a trafficker controls, through cash deposits often via a front business, through recruitment fees paid by victims, and through layering that moves profits across accounts to hide their source. Because it mixes with legitimate activity, it takes good monitoring to detect.
What are the financial red flags of modern slavery?
Red flags include many workers’ wages paid into a single account, one address or phone number linked to many accounts, salary payments withdrawn in full immediately, a business whose accounts do not match its activity, little normal personal spending on a worker’s account, and payments to recruitment or travel agents that resemble debt repayment.
What laws cover modern slavery?
Modern slavery is a crime everywhere. The UK Modern Slavery Act 2015 criminalizes slavery and trafficking and requires large firms to report on their supply chains. US federal laws address trafficking and ban goods made with forced labor. Anti-money laundering rules also treat the proceeds of trafficking as dirty money, adding financial crime duties.
How do banks help fight modern slavery?
Banks rarely witness the crime, but they handle the money it produces. By watching for the financial patterns of exploitation, such as wage-account patterns and shared account details, and reporting suspicion, a bank can help uncover trafficking that would otherwise stay hidden. Many firms now train staff specifically to spot these signs.
Is modern slavery a predicate offense?
Yes. Modern slavery, including forced labor and human trafficking, is a predicate offense for money laundering, meaning it is an underlying crime that produces dirty money. The profits from exploitation have to be laundered to be used, so the same anti-money laundering controls that catch other proceeds can help catch these.
What is the difference between modern slavery and human trafficking?
Human trafficking is one form of modern slavery. Modern slavery is the broader umbrella term, covering forced labor, debt bondage, forced marriage, and trafficking. Human trafficking specifically involves recruiting, moving, or holding people for exploitation. Both are crimes, and both generate profits that must be laundered, which brings them within financial crime controls.
How can financial data reveal modern slavery?
Financial data can reveal modern slavery because the exploitation produces money that moves through accounts. A victim may be invisible to a bank, but an account paying many people’s wages to a single address is not. Patterns such as shared details, controlled wage accounts, and immediate withdrawals can point to exploitation that is otherwise hidden.
What should a firm do if it suspects modern slavery?
A firm that suspects modern slavery should investigate the accounts showing the warning signs, file a suspicious activity report to the relevant authority, and support law enforcement. It should not tip off the suspected trafficker. Staff training helps the signs get recognized and escalated rather than missed, since the financial trail may be the only visible clue.
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Last reviewed July 12, 2026 · 11 min read · Written for compliance and risk professionals · By the WhoWiki editorial team
Key takeaway: modern slavery is the exploitation of people for profit, and it is a financial crime that generates hundreds of billions of dollars needing to be laundered.