Question to the Home Office:

To ask Her Majesty's Government, further to reports that HSBC invested in Xinjiang Tianye Ltd, a subsidiary of an entity sanctioned by the government of the United States of America for its involvement in crimes against Uyghurs in Xinjiang, what steps they are taking to extend section 54 (Transparency in supply chains etc.) of the Modern Slavery Act 2015 so that it better governs the activities of financial services institutions.

The UK was the first country in the world to require businesses to report on the steps they have taken to tackle modern slavery. The landmark provision in section 54 of the Modern Slavery Act 2015 requires organisations, including financial institutions, with a turnover of £36m or more, to report annually on the steps they have taken to prevent modern slavery in their operations and supply chains.

The prevalence of modern slavery and complexity of global supply chains means that it is highly unlikely that any sector or company is immune from the risks of modern slavery, including those in financial services. The Government encourages companies to monitor their supply chains with rigour to uncover and remedy any associations they may find with forced labour or other labour abuses.

The Government has already committed to take forward an ambitious package of changes to strengthen the Act’s transparency legislation, including mandating the specific reporting topics that statements must cover and introducing financial penalties for organisations that fail to comply.

To further bolster our approach to modern slavery, on 24 March 2021, the Government announced a review of the 2014 Modern Slavery Strategy. As part of the strategy review we will consider how to strengthen our approach to transparency in supply chains, including in relation to financial institutions. A revised strategy will allow us to build on the considerable progress we have made to date, adapt our approach to the evolving nature of these terrible crimes, and continue our international leadership in tackling modern slavery.