FLOW. FLOWS OF ILLICIT FUNDS AND VICTIMS OF LABOUR TRAFFICKING: UNCOVERING THE COMPLEXITIES This project was funded by the European Union’s Internal Security Fund — Police. The FLOW project promotes a holistic approach to the prevention and investigation of trafficking in human beings (THB) in conjunction with economic crime and engages businesses in the prevention of THB. THB is an end result of complex interconnections between unsustainable business practices, organized crime, corruption and illicit flows. When tackling this nexus understanding these connections, and cooperation between business, law enforcement and labour inspectors is crucial. And moreover, the needs and rights of the victim of THB should be at the core of the actions taken.

1. FLOW AS A CULMINATION OF
HEUNI’S WORK AND CONCEPTS
Natalia Ollus & Anniina Jokinen
4 October, 2018
THE EUROPEAN INSTITUTE FOR CRIME PREVENTION
AND CONTROL, AFFILIATED WITH THE UN

2. FROM LABOUR
EXPLOITATION
TO TRAFFICKING

3. PUBLICATIONS
Report series 68.Trafficking for Forced Labour and Labour
Exploitation in Finland, Poland and Estonia
Edited by Anniina Jokinen, Natalia Ollus and Kauko Aromaa. Helsinki 2011.
Report series no. 75. Exploitation of migrant workers in Finland,
Sweden, Estonia and Lithuania: Uncovering the links between
recruitment, irregular employment practices and labour trafficking
Edited by Natalia Ollus,Anniina Jokinen and Matti Joutsen. Helsinki 2013
Report series no. 78. Guidelines to prevent abusive recruitment,
exploitative employment and trafficking of migrant workers in the
Baltic Sea region
Liliana Sorrentino and Anniina Jokinen. Helsinki 2014
Report Series 84: From Forced Flexibility to Forced Labour:The
Exploitation of Migrant Workers in Finland
Natalia Ollus. Helsinki 2016

4. 4
Membership in national
and international working
groups
National and
international networks Judgements
Parliamentary and
legislative hearings,
references in background
documents of law etc.
Legislative
processes
IMPACT OF HEUNI’S
THB WORK
E.g. berry picking case (District
court of Keski-Suomi R 17/373,
19.01.2018)
UNODC Global Report
on Trafficking, FRA:n
SELEX report
References in
international projects
Police, prosecutors,
judges, trade unions, other
authorities
Training and capacity
building

5. THE SPECTRUM/CONTINUUM
OF EXPLOITATION
TRAFFICKING, FORCED
LABOUR AND EXPLOITATION

6. 6
Exploiting migrants’
powerlessness
Indicators of exploitation
Several cases of severe labour exploitation of migrant workers in Finland annually
in multiple sectors (e.g. in catering, agriculture, cleaning, construction)
Manipulation of
contractual practices
Direct use of force
and threats
Exploiting migrants’
economic
vulnerability

7. LABOUR TRAFFICKING AND EXPLOITATION OF MIGRANT WORKERS
An infringement of the
rights of the individual –
labour exploitation,
extortionate work
discrimination,
ultimately trafficking.
Exploitation as a
structural problem,
focus on restaurant and
cleaning sectors.
Including the prevention
of trafficking and
exploitation into
corporate social
responsibility policies.
Exploitation Corporate
crime
Corporate
social
responsibility

8. THE SITUATION
IN FINLAND

9. 5 3
8 11
19
31 34
18
11
27
61 58
29
1
0
4
7
17
14
14
33
32
18
45
46
29
0
0
0
0
9
6 0
5
7
7
24
23
19
0
20
40
60
80
100
120
140
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
labour exploitation sexual exploitation other VICTIMS OF
TRAFFICKING
ASSISTED
2006-2018
(JUNE)

10. TRAFFICKINGCASESREPORTEDTOTHEFINNISHPOLICE2010-2016
11
24 21 18 16
24
67
2
6
4
3 4
6
5
0
10
20
30
40
50
60
70
80
2010 2011 2012 2013 2014 2015 2016
Human trafficking and aggravated human trafficking (all forms)

12. fi15
LEGISLATIVE FRAMEWORK
.
15
Extortionate work discrimination
• Labour offence (labour inspectors’ duty to
report)
• Fines
• Limited rights for victims
(Aggravated usury)
Trafficking in human beings:
• Serious (violent) offence
• Imprisonment
• Special rights for victims of trafficking
(support/assistance, residence permit etc)

13. GUIDELINES FOR
BUSINESSES

14. #HEUNIOPAS
HEUNI guidelines for companies on managing the
risk of hidden labour trafficking in local
subcontracting chains.

15. 21
GUIDELINES FOR COMPANIES AND
EMPLOYERS
01Overall risk
assessment
Use of migrant workers who lack
knowledge of labour rights in Finland;
use of subcontracting; engagement in
risk sectors?
02Recruitment and
payment practices
Are all potential employees met in
person and the terms of employment
presented in a language that the
employee can understand; use of
written employment contracts;
ensuring the validity of personal
documents?
03 The use of
subcontractors
Is the use of sub-contractors limited; are the
subcontractors vetted; are there contractual
clauses that foresee contract termination in
case of detection of exploitation?
04Indicators of
exploitation
Victims are often silent due to threats, lack of
options and fear of reprisals. Do employees
know what constitute as red flags? The full
picture is hidden, people have to act on the
sense “that something is wrong”. Does your
company have a mechanisms for reporting
possible suspicions?

16. FLOW: FLOWS OF ILLICIT FUNDS AND
VICTIMS OF LABOUR TRAFFICKING:
UNCOVERING THE COMPLEXITIES

17. 23
01
Underpayment,
unpaid salaries
02
Non-payment of
statutory employer’s
fees (social welfare,
retirement etc.)
03
Considerable
financial profits from
systematic
under/non-payment
of wages
www.heuni.fi
Economic crimes related to labour
exploitation: underpayment of salaries

18. So an hour of work, including all fees, holiday wages and everything is about
22– 25 EUR per hour, depending on the restaurant. So if you pay 7 EUR per
hour under the table, it makes quite a big competitive advantage. (Permit and
inspection authority)
Vietnamese restaurant: one of the exploited cooks received a starting wages
of 500 EUR per month and had to work 6−7 days a week, up to 10–15
hours a day.

19. Sales besides the till/non-reported sales esp. in restaurants
Redirecting card payments from the till to other, unaccounted bank accounts
Tax evasion
Economic crimes related to labour
exploitation: tax evasion and undeclared sales
Using blind accounts
Subtracting amounts from the sales before closing the books for the day

20. 26
Misuse of benefits and
allowances, e.g. so-
called start-up money
for opening a new
business
“Clean” the details
entered into various
registers (i.e. corporate
register and corporate
liability register) and
enable the new owner
to start fresh without
any notations or credit
problems.
Frequent change of
ownership of businesses
(e.g. small restaurants)
Economic crimes related to labour
exploitation: misuse of economic structures

21. 27
Transferral of funds abroad
(Mamma Mia case?)
Using employees or
relatives to carry cash to
home country with them
Money laundering
e.g. in ethnic
restaurants?
Economic crimes related to labour
exploitation: money-laundering

22. 28
Do you have
relevant case
examples to
share?
3
What are the links
between financial
crimes and
exploitation?
2
1
Discussion on relevant cases,
recent trends and definitions
Definition of
exploitation vs.
trafficking in
your country?

23. 29
How to report
the results of the
data collection in
ENG to CSD?
What kind
template is
needed?
3
What kind of network
diagram/analysis makes
sense? Using CSD’s
previous work as a
basis?
2
1
Discussion on data collection and
methods
How to do the
data collection in all
countries (case
examples,
media articles,
selected interviews
max 5)

24. 32
Thanks!
Europeaninstituteheuni
@heuni_institute
@NataliaOllus
heuni.fi
@
natalia.ollus@om.fi