Introduction
Banks and other financial institutions are exposed to several
key areas of risk in relation to modern slavery. These risks arise
mainly from purchasing goods and services from third parties and
being associated with customers' illegal activities.
The Australian Commonwealth Government plans to introduce a
Modern Slavery Act in Australia, similar to the UK Modern Slavery
Act, which will impose a new Australian regulatory requirement on
large businesses, including financial institutions, to report on
modern slavery risks in their operations and supply chains.
The legislation will not require financial institutions to
report on risks relating to their customers. But criminal activity
by customers remains a significant area of risk for financial
institutions, particularly large banking groups with retail
operations in multiple jurisdictions. Reflecting this concern, some
banks are reporting under the UK Modern Slavery Act on what they
are doing in this
