3 U.S. v. Lopez-Perez, 178 F. Supp2d 1236 (E.D.N. Y. 2002).
4 United States v. Fields, No. 8:13-cr-198-T- 30( TG W), 2013 U.S. Dist. LEXIS
135763 (M.D. Fla. Sept. 18, 2013).
5 Second Superseding Indictment, United States v. Hampton, No. CR08-5671
(BHS) ( W.D. Wash. Apr. 30, 2009).
6 Indictment, United States v. Kenit, No. 3:11-cr-05182-RJB ( W.D. Wash. Mar.
24, 2011).
7 United States v. Mireles, No. 08-CR-00349, 2009 U.S. LEXIS 109176
( W.D.N. Y. Nov. 23, 2009).
8 United States v. Phan, 628 F. Supp. 2d 562 (M.D. Pa. 2009).
9 Polaris Project, 2013 Analysis of State Human Trafficking Laws, at 6 (August
2013), http://www.polarisproject.org/storage/2013_State_Ratings_Analysis_
Full_Report.pdf. North Dakota is the only state that has not made even
minimal efforts to enact a basic legal framework to combat human
trafficking.
10 State of California Department of Justice, Office of the Attorney General,
Human Trafficking Legislation, http://oag.ca.gov/human-trafficking/
legislation
11 The Trafficking Victims Protection Act of 2000, 22 U.S.C. §§ 7101-7113,
defines “severe forms of trafficking in persons” as:
a sex trafficking in which a commercial sex act is induced by force, fraud,
or coercion, or in which the person induced to perform such an act has
not attained 18 years of age; or
b the recruitment, harboring, transportation, provision, or obtaining of a
person for labor or services, through the use of force, fraud, or coercion
for the purpose of subjection to involuntary servitude, peonage, debt,
bondage or slavery.
12 22 U.S.C. § 7102( 9).
13 Global Financial Integrity found that within the developing world, illicit
monetary outflows increased from 2002 to 2011. According to the report,
the developing world lost US$946.7 billion in illicit outflows in 2011,
representing a 13.7% increase over 2010. From 2002 to 2011, illicit outflows
increased at an average rate of 10.2% per year over the decade, significantly
outpacing GDP growth. Dev Kar & Brian LeBlanc, Illicit Financial Flows
from Developing Countries: 2002-2011, Global Financial Integrity, at ix-x
(Dec. 2013), http://iff.gfintegrity.org/iff2013/Illicit_Financial_Flows_from_
Developing_Countries_2002-2011-LowRes.pdf
14 Assessing corruption-related risk is another example of ABC controls
overlapping with human trafficking risk. A direct correlation appears to
exist between countries with high corruption-related risk and those with
human trafficking risk. See Corruption & Labor Trafficking in Global Supply
Chains, White Paper, Verite, at 3-6 (Dec. 2013), http://www.verite.org/sites/
default/files/images/WhitePaper_Corruption%26Labor%20Trafficking% 20
FINAL.pdf. This is another reason it makes sense to measure ABC and
human trafficking risk at the same time, via the same compliance exercise.
15 FCPA refers to the U.S. Foreign Corrupt Practices Act of 1977 ( 15 U.S.C.
§§ 78dd- 1 to - 3), the central anti-bribery and corruption law in the United
States.
ABOUT THE AUTHORS
ARTHUR MIDDLEMISS practices law in the areas of financial
crimes compliance. He has extensive experience planning, building,
and running global financial crimes compliance programs, with a
particular emphasis on anti-corruption and anti-money laundering.
He provides strategic counsel to foreign and domestic entities
seeking to mitigate regulatory, criminal and reputational risk. His
expertise includes securities and other fraud-related investigations.
Previously, Middlemiss directed the anti-corruption program of
one of the world’s largest financial institutions, where he also held
senior positions related to anti-money laundering compliance. He
served as an Assistant District Attorney in the New York County
District Attorney’s Office. As Bureau Chief of Investigations Division
Central, also known as DANY Overseas, Middlemiss supervised
the investigation and prosecution of complex white collar criminal
cases, focusing on matters involving securities fraud, international
money laundering, tax evasion, and illegal money remitters.
Middlemiss co-led the District Attorney’s investigation into the role
of financial institutions in Enron’s collapse. He can be contacted at
arthur.middlemiss@lewisbaach.com
HILLARY ROSENBERG, Counsel at Lewis Baach Kaufmann
Middlemiss, practices in the area of financial crimes compliance.
She provides strategic counsel to foreign and domestic entities
seeking to mitigate regulatory, criminal and reputational risk in the
areas of anti-money laundering, anti-corruption, and sanctions.
Her practice also includes internal corporate investigations and
white-collar criminal representation.
Prior to joining the firm, Rosenberg was Vice-President and
Compliance Director of the Global Anti-Corruption Program at
JPMorgan Chase & Co., where she designed and executed an
enterprise-wide compliance program to mitigate corruption-
related risk. Her experience included working with the firm’s
lines of business to develop, implement and evaluate global
compliance controls relating to gifts & entertainment, third-party
intermediaries, and majority-controlled entities. Rosenberg also
helped create the annual risk assessment, devised and delivered
compliance-related training, and conducted internal investigations
regarding employee misconduct. Previously, Rosenberg served for
seven years as an Assistant District Attorney in the Manhattan
District Attorney’s Office, where she investigated and prosecuted
a variety of violent and white-collar criminal offenses, including
securities, money laundering and complex financial fraud cases.
She can be contacted at hillary.rosenberg@lewisbaach.com.
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