Sanctions, proliferation, money laundering, export and trade control news etc
HOW DUE DILIGENCE CAN ADDRESS RISKS IN THE DIAMOND INDUSTRY
On 9 September, Kroll published an article saying that brutal, diamond-funded civil wars fought in the 1990s across Angola, Liberia, and Sierra Leone have tarnished the image of a gem historically more associated with fairy tales and royal dynasties; and more recently, in its 2018 List of Goods Produced by Child or Forced Labor, the US Department of Labor identified abusive labour practices in diamond mines across Central and West Africa, and noted that deaths or injuries due to dangerous working conditions remain frequent. In 2003, the UN implemented the Kimberley Process Certification Scheme (the Kimberley Process). The article asks: looking beyond the Kimberley Process: what risks arise from purchasing diamonds? It cautions that Kimberley Process-compliant certification is not a guarantee of ethical practice or sanctions compliance. It also warns that the high value, portability, lack of regulatory framework and traceability, stable and indexed prices are all appealing factors for those tempted to use diamonds in illicit transactions outside of the formal banking system and as a store of value for criminals, terrorists and tax evaders alike. It asks what Are suppliers doing to improve their transparency processes?
Chartered Legal Executive and former senior manager with Isle of Man Customs and Excise, where I was (amongst other things) Sanctions Officer (for UN/EU sanctions), Export Licensing Officer and Manager of the Legal-Library & Collectorate Support Section
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