1. Rough Diamond Trade Controls
An Overview of Kimberly Process

2. Diamond Industry Facts
An estimated 10 million people globally are directly or indirectly supported by the diamond industry.
Approximately one million people are employed by the diamond industry in India
Approximately $8.5 billion worth of diamonds a year come from African countries
An estimated 65% of the world's diamonds come from African countries
An estimated 5 million people have access to appropriate healthcare globally thanks to revenues from diamonds
De Beers owns 40% of diamond mines
Main diamond centers: London, New York, Tel Aviv, Johannesburg, Bombay and Dubai
US largest consumer of diamonds

3. What are rough diamonds?
Rough diamond refers to a diamond which has not yet been cut

4. Why need control?
In some countries rough diamonds are used to fund causes such as
civil wars,
fund rebel movements to undermine or overthrow governments,
and contribute to human rights violations.
Diamonds originating from countries committing actions such as these are called conflict diamonds.
Non-transparent industry operations and illicit trade
False declarations by importers/exporters of diamond

5. The Controls
The Kimberley Process Certification Scheme (KPCS) was introduced in 2003.
It is an international certificate based system that controls the flow of the rough diamond trade.
Its aim is to prevent the trade of conflict diamonds.
Today, there are 75 countries, including the United States (U.S.), which have joined together and agreed to participate in the KPCS.
By their involvement, they have agreed to trade only amongst other countries participating in the KPCS.

6. Kimberley Process Participants
Under UN sanctions
Voluntary suspension
of exports and imports
Kimberley Process
Participant
*Participants account for 99.8% of global rough diamond production
Source:

7. What Does the KPCS Require?
Participants must meet ‘minimum requirements’
National legislation and institutions
Export, import, and internal controls
Commit to transparency and the exchange of statistical data
Participants can only legally trade with other participants
Shipments must be accompanied by a KP certificate that guarantees the diamonds are “conflict-free”

8. What has KPCS done?
The Kimberley Process has brought together states, multinational corporations, and NGOs to help regulate the trade in conflict diamonds; however, serious problems still remain and can be confronted by stricter enforcement of internal controls, industry regulation, and cross-border smuggling.
KPCS has evolved into an effective mechanism for stemming trade in conflict diamonds:
Conflict diamonds now represent a fraction of one percent of trade, compared to 15% in the 1990’s
It has also helped promote peace and security:
Stabilize fragile countries
Brings large volumes of diamonds into the legal market
$125 million exported from Sierra Leone in 2006, compared to none in the 1990’s
Greater transparency in gathering statistical data that is available to the public

9. U.S. Sanctions Against Sierra Leone and Liberia
January 18, 2001 – EO was issued
Prohibits the import of rough diamonds from Sierra Leone*
May 22, 2001 – EO was issued
Prohibits import of rough diamonds from Liberia
July 30, EO was issued
Amends and harmonizes EO13194 and EO13213 in order to implement the CDTA
Maintains prohibition of imports of rough diamonds from Sierra Leone* and Liberia
Executive Order was issued January 18, 2001 by President Clinton and prohibits import of rough diamonds from Sierra Leone (unless they controlled through a Certificate of Origin regime of the Government of Sierra Leone)
Recognizes that the Revolutionary United Front’s (RUF’s) illicit trade in diamonds challenges U.S. foreign policy objectives and rule-base order that is crucial to peace and prosperity in the United States.
THREAT TO NATIONAL SECURITY consistent with the United Nations Security Council Resolution 1306.
Executive Order was issued May 22, 2001 by President Bush and prohibits import of rough diamonds from Liberia
Recognizes that the bulk of RUF diamonds leave Sierra Leone and go through Liberia_
Executive Order was issued July 30, 2003 by President Bush amends and harmonizes EO13194 and EO13213 in order to implement the CDTA
Maintains prohibition of imports of rough diamonds from Sierra Leone (unless they controlled through the KPCS)
Maintains prohibition of imports of rough diamonds from Liberia
Liberia – now a member of the KPCS, the UN lifted sanctions in 2007

10. Clean Diamond Trade Act
CDTA was passed on April 25, 2003
Authorizes the President to take steps to implement the KPCS:
Prohibits importation of any rough diamond that has not been controlled through the KPCS
Requires diamond importers to keep full records relating to the importation of rough diamonds
Requires annual reviews for oversight
What does the CDTA do?
Prohibits importation of any rough diamond that has not been controlled through the KPCS
Requires diamond importers to keep full records relating to the importation of rough diamonds
Requires annual reviews for oversight