As Canada gets ready to host the upcoming World Cup soccer tournament, the federal financial intelligence agency is cautioning about the heightened risk of human trafficking during major sports events. A recent advisory from the Financial Transactions and Reports Analysis Centre of Canada (Fintrac) urges businesses to be vigilant for financial transactions potentially associated with trafficking for sexual exploitation or forced labor.
Fintrac, which identifies money laundering activities by analyzing vast amounts of data from various financial institutions, shares its findings with law enforcement agencies like the Canadian Security Intelligence Service and the RCMP. In the past year, Fintrac provided 316 pieces of actionable financial intelligence to aid human trafficking investigations, identifying 538 individuals of interest and supporting 26 project-level probes.
The World Cup, jointly hosted by Canada, Mexico, and the United States, will take place from June 11 to July 19, featuring 48 nations playing 104 matches, including 13 games in Toronto and Vancouver. Major international events like these can attract a large influx of visitors, increasing the risk of sexual exploitation due to heightened demand for accommodations, entertainment, and commercial sexual services around event venues and transit hubs, according to Fintrac.
The agency warns that traffickers might exploit the surge in economic activity during such events to target vulnerable individuals, especially through online platforms like escort websites and social media. These events can also lead to an increased need for workers in sectors such as hospitality, construction, and security, potentially offering traffickers opportunities for exploitative recruitment practices.
Businesses under Fintrac’s jurisdiction are required to report any suspicious financial activities related to money laundering, terrorist financing, or sanctions evasion. The bulletin advises these businesses to provide detailed information in their reports on potential human trafficking activities to help authorities understand the context and nature of the transactions.
Fintrac highlights certain red flags that could indicate financial ties to sexual or labor exploitation, such as frequent hotel expenses coinciding with late-night ATM withdrawals in event cities or payments for online escort ads from a single account for multiple individuals. Circular fund transfers between personal and business accounts without a clear business purpose could also be indicative of forced labor practices, according to the advisory.