Understanding forced labor: Strategies and solutions to identify signs and assess risks

According to data from the International Labour Organization (ILO) an estimated 27.6 million people are in forced labor worldwide, generating more than $236 billion in illegal profits each year.

Forced labor is a serious, persistent threat to individuals, societies, businesses, and supply chains globally. Moody’s is committed to providing solutions that help organizations understand, assess, and monitor risks associated with forced labor, modern slavery, human trafficking, and related financial crimes within their third-party networks.






Forced labor risk assessment in global supply chains

Aerial view of trucks parded outside a factory

This whitepaper, written in conjunction with the Rights Lab at the University of Nottingham, analyzes critical issues associated with forced labor and its impacts on global businesses and their supply chains.

  1. Revealing statistics: Access key figures associated with the scale and value of products made using forced labor.
  2. Operational insights: Understand more about the operational disruptions and broader economic harm forced labor can cause.
  3. Risk-based approaches: Review options for data-driven frameworks to analyze, assess, and address forced labor risks.

Get your copy of the paper to better assess and understand forced labor risks in your third-party network and supply chains.

Many thanks to Prof. Zoe Trodd, the Rights Lab, for her contribution and collaboration on this paper.




Rising risks associated with human trafficking

Chart showing number of global human trafficking events from 2019 - 2024

In 2024, the number of risk events related to Human Trafficking in Moody’s modern slavery module totaled more than 16,800.

While Human Trafficking-related risk events decreased in 2020 during the global pandemic, the trend shows an ongoing increase in risk over the subsequent 4 years. And events tracked in 2024 were nearly double those in 2019.

For more information about our forced labor risk assessment data and intelligent screening solutions, please get in touch.




Solutions that empower organizations to address forced labor

Moody’s offers organizations powerful sources of data, analytics, and workflow solutions to screen for risks associated with forced labor and other offenses across their business network.

Whether in North America, Europe, or Asia, organizations can configure customer and supplier due diligence activity, screening, and monitoring to policies and create a clearer picture of risk.


Forced labor risk assessment
Forced labor risk assessment

Moody’s and the Rights Lab at the University of Nottingham have collaborated to develop the Forced Labor Risk Assessment to help organizations assess their supply chains for forced labor risk. The assessment integrates the Rights Lab’s scoring algorithm and research with Moody’s technology to help organizations mitigate forced labor risks.

Entity-level screening
Entity-level screening

Moody’s has 8 tailored risk codes relating to modern slavery to complement a customer’s existing screening configuration. These codes represent relevant and significant events connected with modern slavery, such as human trafficking, sex offenses, and human rights violations.

Screening and ownership data

Moody’s can integrate beneficial ownership and business ownership data into screening processes to support customers to better understand who they are working with and risks associated with forced labor.

Portfolio monitoring

Through a process of perpetual KYC (pKYC), customers can receive alerts when individuals or organizations in their counterparty network are accused or convicted of forced labor or modern slavery-related offenses. This can support a more proactive approach to risk management and compliance.





Dispelling 5 myths of forced labor


Perceptions about forced labor don’t necessarily reflect today’s lived reality. Dive into 5 of the most common misconceptions about forced labor risk within legitimate industries and global supply chains.




Global efforts to combat forced labor

Many governments around the world have imposed laws and continue to strengthen regulation pertaining to modern slavery, human trafficking, and forced labor.

Penalties and enforcement actions related to non-compliance can be severe, as can the reputational damage businesses experience if they are linked to human rights abuses. Through compliance requirements, sustainability commitments, and best practices, organizations globally are engaging in risk management and mitigation to address these crimes and prevent abuse.





Risk Reframed podcast

Forced labor risk assessment

Tackling Forced Labor Risks

Forced labor continues to challenge global trade, often concealed within complex and opaque supply chains. As regulatory expectations evolve, organizations are seeking clearer visibility and stronger compliance frameworks.

In this episode, Amy Morgan, VP of Trade at Altana, joins Moody's host, Alex Pillow, to discuss how companies can better identify and manage forced labor risks. Amy offers practical insight into shifting regulations, operational hurdles, and the growing role of technology in supply chain transparency.




Moody's financial crime documentary series

The Infinite Game

If you haven’t experienced it yet, watch The Infinite Game, a Moody’s docuseries that takes viewers on a journey through the ongoing battle against financial crime and its consequences.

Through 3 engaging 10-minute episodes, you will find out more about the scale of the challenge to businesses, societies, and the global economy.

Told through real-life events and expert narration, get an insight into the complexities of this infinite game.





More information and resources on forced labor

How to navigate Australia's modern slavery legislation

Read about the global impact of modern slavery with a focus on Australia's Modern Slavery Act and amendments establishing the role of the Anti-Slavery Commissioner. Explore how these changes affect Australian firms and suppliers and increase scrutiny on supply chains.

EU Forced Labor regulations — what’s changing and why it matters

Explore key requirements of the EU Forced Labor Regulation and related directives, helping compliance officers navigate risk-based due diligence and reporting.

Human trafficking and forced labor in the food supply chain

Explore hidden challenges related to the food purchased in grocery stores, from the exploitation of forced labor to statistics on modern slavery, including the plight of migrant workers.

Moody’s Forced Labor Risk Assessment: Using data to help identify and mitigate risks

How Moody’s Forced Labor Assessment empowers organizations to better identify, measure, and mitigate supply chain risks. Discover a model developed with the Rights Lab for actionable insights across compliance processes.


What is modern slavery? FAQs


Understanding the forms of crime and exploitation associated with forced labor is crucial in helping to protect the rights and dignity of individuals. In this section, we look at some of the common terms and what they mean to help increase awareness of these different but connected global problems.

Forced labor refers to any work or service individuals are compelled to provide against their will, often for little or no wages, and under the threat of destitution, violence, or other extreme hardships.

Debt bondage refers to a situation where a person, often in dire poverty, pledges their services as security for the repayment of a debt or obligation.

This involves the recruitment, transportation, transfer, harboring, or receipt of persons by means of threat, use of force, or other forms of coercion for the purpose of exploitation.

Domestic servitude is a form of human trafficking in which individuals are forced to work in private homes as domestic workers for little or no wages. The work is often performed in private residences as seemingly normal practice that is used as cover for the trade, exploitation, and control of someone.

This is a situation where a person is forced to marry against their will. Forced marriage can be a form of modern slavery when it involves coercion, deception, or exploitation.

Child labor is work performed by children who are under the minimum age for employment or working in conditions that are harmful to them. The U.S. Bureau of International Labor Affairs (ILAB) maintains a list of goods produced by child labor or forced labor.

*Disclaimer: This content is for informational purposes only and reflects our understanding of the subject matter as of the date of publication. It does not constitute legal, regulatory, or compliance advice.



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