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In order to fully combat the scourge of conflict diamonds, the world diamond industry in voluntary cooperation with numerous legitimate govenrments and non-governmental
organizations developed the Kimberley Process Certification Scheme. On November 5, 2002, the governments of fifty-two nations ratified and adopted the final Kimberley Process Certification Scheme. In essence, these countries have agreed that
they will only allow for the import or export of rough diamonds if those rough diamonds come from or are being exported to another Kimberley participating nation.
The Kimberley Process Certification Scheme requires that each shipment of rough diamonds being exported and crossing an international border be transported in a tamper-resistant
container and accompanied by a government-validated Kimberley Process Certificate. Each certificate should be resistant to forgery, uniquely numbered and include data describing the shiment's content.
The shipment can only be exported to a co-participant country in the Kimberley Process. No uncertified shipments of rough diamonds will be permitted to enter a participant's country.
Failure to adhere to the requirements of the Kimberley Process Certification Scheme can lead to confiscation or rejection of parcels and/or criminal sanctions.
In order to strengthen the credibility of the Kimberley Process agreement, as well as to provide the means by which consumers might more effectively be assured of the
origin of their diamonds, it has been proposed that the industry create and implement a System of Warranties for diamonds. Under this system, which has been endorsed by the Kimberley Process participants, all buyers and sellers of both rough and polished diamonds
must make the following affirmative statement on all invoices:
"The diamonds herein invoiced have been purchased from legitimate sources not involved in funding conflict and in compliance with United Nations resolutions.
The seller hereby guarantees that these diamonds are conflict free, based on personal knowledge and/or written guarantees provided by the supplier of these diamonds."
In addition, each company trading in rough and polished diamonds is obliged to keep records of the warranty invoices received and the warranty invoices issued when buying or selling diamonds.
Additionally, any American importer of rough diamonds is required to send confirmation of all parcels of rough diamonds received to the applicable exporting authority.
For further information, you are urged to contact the World Diamond Council at the following website:
www.worlddiamondcouncil.com or, you may contact the offices of the
D.M.I.A. at (212) 944-2066.
DIAMONDFACTS.ORG WEBSITE 
For information on the positive impact that the diamond trade does have in Africa and around the world,
please click on www.diamondfacts.org to visit the DIAMONDFACTS.ORG
website (or simply click their icon above).
Please click the white "x" in the red box (it may appear different in some browsers) at the very top right corner of your browser window when you are finished visiting the DIAMONDFACTS.ORG
website to return to the "Industry Regulations" page of the DMIA website.
U.S. PATRIOT ACT - ANTI-MONEY LAUNDERING RULES FOR THE DIAMOND AND JEWELRY INDUSTRY
In June 2005, the Financial Crimes Enforcement Network of the U.S. Treasury Department issued important new rules requiring all "dealers"
in precious metals, stones, or jewels to establish and maintain anti-money laundering programs. The new rules afford "dealers"
until January 1, 2006 to be in compliance.
Under the rules, a "dealer" is defined as a person who, during the preceding year, purchases or sells at least $50,000 of jewels,
precious metals, precious stones (including diamonds) and any finished goods which derive 50% or more of their value from jewels,
precious metals or precious stones contained in or attached to such finished goods. The new rules contain certain exemptions for retailers.
All "dealers" are required by the new rules to design and implement a written Anti-Money Laundering Program.
Dealers are required to appoint a compliance officer, perform risk assessment to evaluate the particular risks of their exposure to money laundering, train their employees, and to engage in periodic testing.
The full text of the new rules can be found at FINCEN's website located at:
www.fincen.gov/antimoneylaundering060305.pdf
Patriot Act compliance kits are available to be purchased from the Jeweler's Vigilance Committee. Information can be found at their
website at: http://www.jvclegal.org.
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