The human toll of money laundering pt.2 - Are we living in a false sense of security?

The human toll of money laundering extends beyond the borders of developing nations, infiltrating communities closer to home. Recent investigations on the Isle of Man revealed a disturbing case of human trafficking and organized immigration crime.

The human toll of money laundering pt.2 – Are we living in a false sense of security?

23 Jul 2024

By Juan McGuinness

In October ‘23 I wrote about the human toll of Money Laundering, making reference at that time to a news story of Malaysians being trafficked to Peru as part of an organised international criminal enterprise. While real-life examples, in exotic locations like Peru are excellent at highlighting the impact of money laundering, they can create a false sense of security for those of us in the Isle of Man, where regulatory and law enforcement standards are believed to be more robust.

However, the human toll of money laundering extends beyond the borders of developing nations, indeed infiltrating communities closer to home. Recent investigations on the Isle of Man revealed a disturbing case of human trafficking and organized immigration crime.

It was recently reported in the Isle of Man Newspapers, that authorities arrested six individuals and uncovered the exploitation of over 200 migrants from countries such as Algeria, the Philippines, India, and Pakistan. Sadly this story carries a familiar tale of migrants, lured by the promise of legitimate employment, finding themselves living in squalid conditions and working jobs vastly different from those advertised. The island’s seasonal migrant visa scheme, initially designed to expand the working population, was manipulated by unscrupulous employers seeing the opportunity to exploit the “light touch” policy and use the Isle of Man as a backdoor into the UK. These arrests exposed the vulnerabilities in the current immigration system and highlighting the urgent need for stricter regulations.

Recently a 24 year old UK resident has been in court on the island, in relation to this nefarious operation, accused of producing fake job offer letters and entry certificates, charging migrants up to £25,000. This scheme, allegedly orchestrated by an international crime group, aimed to exploit migrants for financial gain, demonstrating that human trafficking is not confined to areas with weak law enforcement but can occur even in well-regulated environments. These recent events underscore the pervasive nature of money laundering and human trafficking, reminding us that these crimes can occur right under our noses. Vigilance and stringent enforcement are crucial in combating these insidious activities and protecting the most vulnerable members of our society.

Whilst the majority (if not all) organisations will have robust policies and due diligence processes in place aiming to ensure ownership and control of clients or third parties is fully understood: are the underlying activities of the clients fully understood?

On an individual level these crimes can be facilitated by the anonymity of the victims even if you pass them in the street. How much attention is paid to individuals who don’t speak the local language and work in sectors that are unsocial in nature? Sadly this lack of awareness of the people who work night shifts to keep our offices clean or keep our shelves well stocked make these crimes easy to hide in plain sight.

The recent Isle of Man case exemplifies how human trafficking and associated crimes can infiltrate our communities. This underscores the necessity of thorough due diligence, staying alert to potential red flags, and vigilant enforcement of immigration laws to prevent such exploitation and ensure justice for victims.

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