EOSC 118_2 - N OVEMBER 2008 global witness Loupe Holes...

The illicit trade:
Gateway for conflict diamonds
The illicit trade in rough diamonds is one of the greatest
threats facing the Kimberley Process (KP) certification
scheme. The KP was created to halt and prevent the
trade in conflict diamonds that cost so many lives
during the last two decades. At the end of the scheme’s
fifth year, the trafficking of conflict and illicit stones is
looking more like a dangerous rule than an exception.
Partnership Africa Canada and Global Witness have long
argued that the Kimberley Process should be more
proactive in monitoring infringements, and tougher in
curtailing this illicit trade. The situation today is getting
worse. In Venezuela, rampant diamond smuggling
continues while the government flouts the certification
scheme. Despite a UN embargo on Ivorian conflict
diamonds, stones are still mined in northern Côte
d’Ivoire, smuggled into international trading centres and
sold on to consumers. Reserve Bank of Zimbabwe
governor Gideon Gono recently stated that over 10,000
people were visiting the border town of Mutare every
month for illegal activities involving diamonds. Gono
said that over 2,000 local syndicates were smuggling
diamonds out of the country.
This paper reviews the issues around illicit flows of
rough diamonds, particularly in countries facing serious
challenges in controlling the artisanal mining sector.
We present the results of a survey assessing how
participant countries are enforcing KP controls and
monitoring the diamond industry, and we put forward
specific recommendations for changing the way the KP
is managed and implemented. We hope that the
procrastination and denial that have gripped the
Kimberley Process on these issues in recent years can be
replaced at the forthcoming Plenary Meeting in New Delhi
with a proactive and dedicated response to the problems.
The Kimberley Process should:
Take swift action when faced with cases of
non-compliance and agree an interim suspension
mechanism with clear criteria;
Require of its participants stronger government
oversight of the diamond industry, including regular
stock audits of companies;
Require the cutting and polishing sector to adhere
to KP minimum standards;
Require participants to improve internal controls
and increase collaboration and enforcement efforts
to combat rough diamond smuggling;
Develop a research and monitoring capacity to
address illicit flows of rough diamonds.
global witness
Loupe Holes
Illicit Diamonds in the Kimberley Process
N
OVEMBER
2008
A trader in Belgium uses a loupe to examine rough diamonds.
Dieter Telemans / Panos Pictures

WEST AFRICA
The diamond-rich nations of West Africa – Guinea, Sierra
Leone, Liberia, Ghana, Côte d’Ivoire – are plagued by the
challenges facing most artisanal mining countries:
porous borders, fragile infrastructure, lack of
transparency and weak governance. The continual flow
of conflict diamonds out of Côte d’Ivoire, and the
potential for renewed instability in neighbouring
countries, means that robust Kimberley Process controls
are vital to the region.