RedCompass Labs and Featurespace partner to tackle human trafficking

Featurespace’s integration of RedCompass Labs’ RedFlag Accelerator into its fraud and AML (FRAML) detection platform ARIC Risk Hub, will improve automatic detection of human trafficking in financial data.

London, UK – 28th November 2022. RedCompass Labs, a world leader in good and bad payments technology and developer of RedFlag Accelerator, and Featurespace, the industry leader in preventing fraud and financial crime, have formed a technology partnership to accelerate the detection of human trafficking in financial data.

Disrupting human trafficking
The partnership will bring significant disruption to sex and labor trafficking crimes – a much larger and more covert crime than many realize. Finance Against Slavery & Trafficking (FAST) Initiative estimates that forced labor alone generates an estimated USD 150 billion dollars in illicit funds per year from the 50 million people trapped in modern slavery. This will be achieved through the advanced automation of human trafficking detection in the financial data of Featurespace’s global customer base with the integration of RedCompass Labs’ RedFlag Accelerator technology. With research models provided by RedFlag Accelerator’s integration, financial institutions will be able to take advantage of a library of typologies that will close the gap between good intentions and proactive action on human trafficking.

Tom Hewson, RedCompass Labs’ Founder and CEO:

“Both Featurespace and RedCompass Labs have a shared commitment to identifying and disrupting financial crimes and the impact of them – and specifically regarding human trafficking. With the knowledge provided by the RedFlag Accelerator, combined with the game-changing analytics detection capabilities of ARIC Risk Hub, this technology partnership will be a step-change in bringing about that much-needed disruption, both domestically in the UK and around the world.”

Three reasons why now
1 – Society demands action: both governments and global intergovernmental organizations have set combatting human trafficking as a critical priority measured by Environmental, Social, and Governance (ESG) ratings:

  • The United Nations Sustainable Development Goals Target 8.7 aims to bring the number of people in modern slavery to zero by 2030, requiring a reduction of 10,000 individuals per day.
  • The United States Financial Crimes Enforcement Network (FinCEN) AML/CFT Priorities Statements includes Human Trafficking and Human Smuggling.
  • The new sixth European Union Anti-Money Laundering Directives (6AMLD) implemented in 2021 and updated in 2022 harmonized the definition of predicate offenses including human trafficking for the first time.

 
With this partnership financial institutions can play their critical part to deliver on national priorities, leveraging it as part of their AML reform programs to address current and prepare for future mandates.

2 – Regulatory scrutiny: Combatting illegal activity, including human trafficking, is a core part of AML programs, with failures to do so resulting in high profile fines and reputational damage. Financial institutions can now take advantage of existing expertise on human trafficking typologies and operationalize these into their AML programs to systematically reduce risk exposure.

3 – Technology and actionable intelligence are now available: the source of human trafficking crimes in financial transactions are inherently hard to identify. We can now combine the intelligence and research of financial crime experts with award winning behavioral analytics and technology that can see signals through the noise.

Dave Excell, Featurespace Founder:

“This valuable partnership forms an important part of Featurespace’s ongoing commitment to providing banks and financial institutions with the very best technology to solve the enterprise financial crime problem. RedCompass Labs is leading the way in tackling one of society’s most gruesome crimes, and giving our customers access to this capability is simply the right thing to do.”

How it will work
Banks and financial institutions will have access to RedCompass Labs’ RedFlag Accelerator when they deploy Featurespace’s ARIC Risk Hub. The library of typologies will be integrated into Featurespace machine learning models and adaptive rule sets. Once deployed, RedFlag Accelerator insights will be leveraged within the Featurespace UI to provide an extra layer of analysis to each transaction, automatically creating indicators – also known as, “red flags” – for those deemed suspicious.

RedFlag Accelerator includes many specific scenarios, such as sexual exploitation perpetrator, labor exploitation perpetrator, labor exploitation in multiple-victim housing, and sex trafficking network operative. The scenarios also include human trafficking data sets such as high-risk trafficking countries and high-risk businesses and activities.

RedCompass Labs will also offer Featurespace and its clients advanced consulting services as needed to develop and implement specific ARIC Risk Hub models and rules, and client banks will have access to the complete RedFlag Accelerator Web Portal. Featurespace is also partnering to support joint clients on custom projects in specific topic areas including AML transaction monitoring in real-time for instant payment schemes.

Read more >
See our other articles here
© Chrysalis Investments Limited – All Rights Reserved

G10 Capital Limited is the AIFM to Chrysalis Investments Limited.
Chrysalis Investment Partners LLP is the investment adviser to G10 Capital Limited.
Chrysalis Investment Partners LLP is an appointed representative of G10 Capital Limited which is authorised and regulated by the Financial Conduct Authority.

Disclaimer - Important

THE WEBSITE YOU ARE SEEKING TO ACCESS IS MADE AVAILABLE BY CHRYSALIS INVESTMENTS LIMITED (THE “COMPANY“) IN GOOD FAITH AND IS PROVIDED FOR INFORMATION PURPOSES ONLY.

THE INFORMATION CONTAINED ON THIS WEBSITE IS INTENDED FOR PERSONS IN THE UNITED KINGDOM ONLY AND IN PARTICULAR IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO ANY MEMBER STATE OF THE EUROPEAN ECONOMIC AREA (“EEA”), THE UNITED STATES, CANADA, AUSTRALIA, THE REPUBLIC OF SOUTH AFRICA OR JAPAN OR ANY OTHER JURISDICTION WHERE ITS RELEASE, PUBLICATION OR DISTRIBUTION IS OR MAY BE UNLAWFUL.

Please read this notice carefully – it applies to all persons who view this website. Please note that the terms set out below may be altered or updated without notice. You should read the following provisions in full each time you visit the site.

The information on this website is intended for, and may be accessed only by, persons in the United Kingdom. Viewing the materials you are seeking to access may not be lawful in other jurisdictions.

The information on this website is for information purposes only and does not constitute or form a part of any offer or invitation to sell or issue, or the solicitation of any offer to purchase or subscribe for, securities. Any subscription for securities in the Company may be made only pursuant to a prospectus issued by the Company from time to time that will provide detailed information about the Company and the securities to be offered (the “Prospectus”). Particular attention should be paid to the “Risk Factors” section of the Prospectus which will highlight specific risks relating to the Company.

No securities of the Company have been or will be registered under the US Securities Act of 1933, as amended (the “Securities Act“) or under the securities laws of any state or other jurisdiction of the United States and may not be offered, sold or delivered, directly or indirectly, in or into the United States, or to or for the account or benefit of any US person (within the meaning of Regulation S under the Securities Act). In addition, the Company has not been, and will not be, registered under the United States Investment Company Act of 1940, as amended. There will be no public offer of securities in the United States.

If you are not permitted to view this website or are in any doubt as to whether you are permitted to view this website, please exit this website immediately by clicking on the “Disagree” button below. The contents of this website must not be released or otherwise forwarded, distributed or sent, directly or indirectly, in whole or in part, outside the United Kingdom and in particular in or into any Member State of the EEA, the United States, Australia, Canada, the Republic of South Africa or Japan or any other jurisdiction where the distribution of such materials would or may breach any applicable law or regulation or would require any registration or licensing within such jurisdiction. Persons receiving any such materials (including, without limitation, custodians, nominees and trustees) should observe these restrictions and must not, directly or indirectly, in whole or in part, forward, distribute or send them in, into or from any jurisdiction outside the United Kingdom. Neither the Company, Jupiter Investment Management Limited (the “Investment Adviser”) nor their respective advisers accept any responsibility for any violation by any person of any of these restrictions.

Basis of access

Access to this website is for information purposes only. Any person seeking access to this website represents and warrants to the Company and the Investment Adviser that they are doing so for information purposes only. Making this website available does not constitute an offer to issue or sell or the solicitation of an offer to subscribe for or buy securities in the Company. Further, it does not constitute a recommendation by the Company or the Investment Manager or any associated company or any other person to subscribe for or buy securities in the Company. The information on this website is general in nature and does not in any way constitute investment, tax, legal or other advice.

None of the Company, the Investment Adviser or any other person has, or accepts, any responsibility or duty to update any information, document or announcement contained on this website and the Company reserves the right to add to, remove or amend any information available on this website at any time.

The information on this website is general in nature and may be subject to amendment and updating without notice. None of the Company, the Investment Adviser nor any other person guarantees the accuracy or completeness of any information on this website and each such person disclaims all representations and warranties, whether express or implied, to the greatest extent permitted by applicable law and regulation. By continuing to use this website, you agree to the exclusion by such persons, to the greatest extent permitted by applicable law and regulation, of any and all liability for any direct, indirect, punitive, consequential, incidental, special or other damages, including, without limitation, loss of profits, revenue or data arising out of or relating to the provision of and your use of this website and its content.
Neither the Company, its directors, the Investment Adviser nor any other person accepts any responsibility in respect of any information contained on any other website which may be linked to or from this website.

Use of Cookies

The Company uses cookies to track where you are accessing this website from. For further details of the types of cookie we use please refer to our Privacy and Cookies policy.

Confirmation of understanding and acceptance of terms

Please select your country of residence:

By clicking on the “Agree” button below, you confirm, represent and warrant to the Company and to Merian that you are located in the United Kingdom and you agree that you will not forward, distribute or send any materials contained in this website to any person outside the United Kingdom.

I have read and understood the terms set out above, which I understand may affect my rights and I agree to be bound by those terms. By clicking on the “Agree” button below, I confirm that I am permitted to access the website.