WFDB Stays out of CRJP, Calls on U.S. Recognition of Other AML Laws

The 2005 biennial President Meeting of the heads of diamond exchanges affiliated to the World Federation of Diamond Bourses (WFDB) has concluded with new policy initiatives.

The forum unanimously decided to stay out of the Council for Responsible Jewellery Practices (CRJP), but joined IDMA in calling on the U.S. government to recognize the anti-money laundering legislation in other countries. The presidents also approved a plan that will result in the official launch of the WFDB Mark at the World Diamond Congress next June and cautioned bourse members against trading in rough diamonds originating from the Ivory Coast.

The WFDB Mark is a trademarked logo, which approved members of WFDB-affiliated diamond exchanges will be able to display to clients and suppliers, to confirm that they abide by the WFDB's better business principles.

President Shmuel Schnitzer stressed that maintaining consumer confidence lies at the heart of the WFDB Mark.

He also underlined the unique position of the WFDB. “Whilst a number of organizations have introduced sets of Best Business Principles, they are currently tackling the considerably more difficult, and may I state more expensive task, of creating systems for auditing, monitoring and enforcement,” he noted. “To the best of my knowledge, among the major representative organizations, no such system is yet in place — with one notable exception. We in the WFDB have had such a system in operation since our inception (in 1947). Every one of our affiliated bourses has an effective judicial system in place, and, under the auspices of the WFDB, decisions taken at one bourse is enforced in all its sister bourses.”

In a joint statement with IDMA, the WFDB recognized the provisions of the U.S. PATRIOT Act, and noted that similar AML legislation in other countries exists or is being prepared with the same goals. The two organizations expressed their concern that the implementation of the U.S. PATRIOT Act in the diamond, gem and jewelry industry will disturb the free flow of international trade with the United States and may create a trade barrier.

In the resolution, the WFDB and IDMA encouraged U.S. regulators to accept non-U.S. dealers who fully comply with AML legislation in their own countries in the same way that they accept U.S. dealers who comply with the PATRIOT Act regulations. WFDB and IDMA stated they will work with government authorities to encourage international compliance with AML laws.

Joint WFDB-IDMA Resolution

The WFDB and IDMA note the provisions of the U.S. PATRIOT Act and the praiseworthy goals which the act is designed to achieve. It further notes that similar legislation in other countries exists or is being prepared with the same goals.

The WFDB and IDMA are concerned that implementation of the U.S. PATRIOT Act in the diamond gem and jewelry industry will disturb the free flow of international trade with the United States and may create a trade barrier..

We encourage U.S. regulators to accept foreign dealers who fully comply with their countries AML legislation in the same way as they do accept U.S. dealers who comply with the U.S. PATRIOT Act regulations.

WFDB and IDMA will work with all government authorities to encourage international compliance with AML laws.