Government of the United States Virgin Islands v. JPMorgan Chase Bank, N.A., No. 122-cv-10904 (S.D.N.Y. 2022)/326-28.pdf

EXHIBIT 28 Case 1:22-cv-10904-JSR Document 326-28 Filed 09/08/23 Page 1 of 11 1 FIN-2014-A008September 11, 2014 1. See, 8 U.S.C. § 1324. 2. See generally, 18 U.S.C. §§ 1581, 1584, 1589, 1590, 1591, 24121, 2422, 2423 and 2425, The Victims of Trafficking and Violence Protection Act of 2000 (Pub. L. No. 106-386), applicable State laws and the President’s Interagency Task Force – Progress in Combating Trafficking in Persons: The U.S. Government Response to Modern Slavery. Guidance on Recognizing Activity that May be Associated with Human Smuggling and Human Trafficking – Financial Red Flags FinCEN identifies “red flags” to assist financial institutions in identifying and reporting suspicious financial activity connected to human smuggling and human trafficking. To support law enforcement efforts to fight human smuggling and human trafficking, the Financial Crimes Enforcement Network (FinCEN) seeks to advise financial institutions on how to detect and report suspicious financial activity that may be related to human smuggling and/or human trafficking. Financial institutions, large and small, can play a critical role in identifying and reporting transactions related to these unlawful activities based on their observations when interacting with customers and their monitoring processes. FinCEN, in collaboration with law enforcement agencies, non-governmental organizations and members of the financial industry, has identified financial indicators, or “red flags,” that may indicate financial activity related to human smuggling or human trafficking. In addition to identifying red flags, this advisory provides common terms that financial institutions may use when reporting activity related to these crimes. The use of common terms will assist law enforcement in better identifying possible cases of human smuggling or human trafficking reported through Suspicious Activity Reports (SARs). Human Smuggling Acts or attempts to bring unauthorized aliens to or into the United States, transport them within the U.S., harbor unlawful aliens, encourage entry of illegal aliens, or conspire to commit these violations, knowingly or in reckless disregard of illegal status. 1 Human Trafficking The act of recruiting, harboring, transporting, providing or obtaining a person for forced labor or commercial sex acts through the use of force, fraud or coercion. 2 Case 1:22-cv-10904-JSR Document 326-28 Filed 09/08/23 Page 2 of 11 UNITED STATES DEPARTMENT OF THE TREASURY Fio@E .. ~ Advisory FINCEN ADVISORY 2 Difference between Human Smuggling and Human Trafficking Human Smuggling (i) Involves persons choosing to immigrate illegally. (ii) Is limited to illegal migration or the harboring of undocumented aliens. (iii) Involves foreign nationals. (iv) The crime involves an illegal border crossing or the harboring of someone that illegally crossed the border. Human Trafficking (i) Involves the use of force or coercion and the exploitation of victims. (ii) Includes, but is not limited to, involuntary servitude, forced labor, debt bondage, peonage and sexual exploitation. (iii) Anyone can be a victim regardless of origin, sex, age or legal status. (iv) There is no need for a person to cross a border to be trafficked; individuals can be trafficked within the borders of a country. Understanding How Human Smuggling and Human Trafficking Work There are a number of identifiable stages involved in human smuggling and in human trafficking during which traffickers may need to interact with the financial system. This advisory includes below a brief description of these stages to provide financial institutions with the necessary context to appropriately identify potential human smuggling and/or human trafficking-related transactions. Financial indicators, including those described in Appendices A and B, may reflect transactions associated with actions that facilitate one or more of the stages of human smuggling and/or human trafficking. How Human Smuggling Works Stages of Human Smuggling generally include: Solicitation: A potential migrant may seek the services of a local facilitator/smuggler. Local facilitators/smugglers are often part of a larger smuggling network that works to bring migrants across a country border. In the United States, illegal migrants often originate from Mexico and Central America, but they may originate from anywhere in the world. Transportation: Migrants may be smuggled through a number of different routes and transportation modes to avoid detection. The person may be transported by air, sea and/or land over an international border. Case 1:22-cv-10904-JSR Document 326-28 Filed 09/08/23 Page 3 of 11 FINCEN ADVISORY 3 3. To view the industry sectors particularly vulnerable to human trafficking, please see the U.S. Department of State Trafficking in Persons Annual Report and the July 2011 FATF Report: Money Laundering Risks Arising from Trafficking in Human Beings and Smuggling of Migrants. Payment: Payment to smugglers or to smuggling networks are generally conducted in one of three ways. 1. Pay In Advance: The migrant or the migrant’s relatives provide full payment to the smuggler before traveling. This method of payment is often used by relatives of unaccompanied minors for their migration. 2. Partial Payment: A portion of the smuggling fees is paid prior to departure, with the remaining due upon arrival; final payment is often made by relatives of the migrant in the United States. 3. On Arrival: After the migrant is successfully smuggled, the migrant’s relatives pay the full fee to the smuggler. This method of payment is often used by relatives of unaccompanied minors for their migration. How Human Trafficking Works Stages of Human Trafficking generally include: Recruitment or Abduction: Traffickers obtain their victims through deception or force. For instance, traffickers may recruit victims through the use of kidnapping, false marriages, or advertisements offering employment or study abroad. Individuals from countries and geographic areas that have been affected by economic hardship, armed conflicts or natural disasters are particularly vulnerable to these tactics. Transportation: After being collected, victims are transported to locations where they are exploited or sold to other traffickers. Victims may originate from abroad or within the United States and may be transported by air, sea and/or land domestically or internationally. Exploitation: During this stage, traffickers profit from exploiting victims through forced labor, sexual exploitation, involuntary participation in crimes or other activity. Businesses in the service and manual labor industries (e.g., massage parlors, restaurants, farms, construction companies, domestic services) have been frequently used to exploit trafficked individuals. 3 In contrast to the one-time illicit proceeds of human smuggling, this final phase of human trafficking may generate ongoing criminal proceeds. Case 1:22-cv-10904-JSR Document 326-28 Filed 09/08/23 Page 4 of 11 FINCEN ADVISORY 4 How to Identify Human Smuggling and Human Trafficking Transactions To help identify and report transactions possibly associated with human smuggling and human trafficking, FinCEN has identified a number of red flags (see Appendices A and B) that financial institutions may consider incorporating into their monitoring programs. In applying these red flags, financial institutions are advised that no single transactional red flag is a clear indicator of human smuggling or trafficking-related activity. Accordingly, financial institutions should consider additional factors, such as a customer’s expected financial activity, when determining whether transactions may be associated with human trafficking. The red flags described in Appendices A and B may be associated with one or more of the stages of human smuggling o