Conflict Diamonds

Conflict diamonds are diamonds illegally traded to fund conflict in war-torn areas, particularly in central and western Africa. The United Nations (UN) defines conflict diamonds as "...diamonds that originate from areas controlled by forces or factions opposed to legitimate and internationally recognized governments, and are used to fund military action in opposition to those governments, or in contravention of the decisions of the Security Council." These diamonds are sometimes referred to as "blood diamonds."

Eliminating conflict diamonds
To prevent diamonds from areas of conflict entering into the legitimate diamond supply chain, diamonds are monitored at every point of the diamond pipeline, from mining through to retail. These monitoring processes are called the Kimberley Process and System of Warranties. The Kimberley Process is a UN mandated system, and today over 99% of all diamonds are certified through the Kimberley Process to be from conflict free sources.

At the November 2007 Kimberley Process review meeting held in Brussels, Belgium, 74 nations, non-governmental organizations, including Global Witness and Partnership Africa Canada, and the World Diamond Council met and came to agreement on several important measures designed to strengthen the Kimberley Process. These included:

  • The endorsement of guidance on strengthening internal controls of Participants with rough diamond trading and manufacturing (known as the Brussels Declaration);
  • The announcement of the Brussels Initiative which will enhance the control and monitoring of rough diamonds from the Ivory Coast;
  • Completion of the first round of peer review visits of Kimberley Process Participants was completed;
  • The first publication of diamond production statistics;
  • The Working Group of Artisanal Alluvial Producers (WGAAP) presentation of a matrix of challenges facing artisanal/alluvial producing countries to be used as a tool to help improve their internal controls;
  • The growth in the number of Kimberley Process Participants to 74, with the inclusion of Turkey, Liberia and the Republic of Congo.


Ensuring a Conflict Free Diamond Industry

Mining
After rough diamonds are mined, they are transported to Government Diamond Offices.

Export (Kimberley Process):
After arriving at the Government Diamond Offices, the source of the diamonds is checked to ensure it is conflict free. The diamonds are then sealed and placed into tamper resistant containers and issued a government-validated Kimberley Process Certificate, each bearing a unique serial number. There are 74 countries that have implemented the principles of the Kimberley Process and have it enshrined in their national law. Only these countries may legitimately export rough diamonds.

Import (Kimberley Process):
Diamonds can only legally be imported into one of the 74 Kimberley process countries. Once diamonds are imported, the government customs office, in conformance with its national procedures, checks the certificate and seals on the container. Any rough diamonds without a government-validated Kimberley Certificate or that are unsealed are turned back or impounded by Customs.

Manufacturing/Trading (System of Warranties):
Once a diamond has been legitimately imported it is ready to be traded, cut and polished and set into jewelry. Several companies may be involved in this process. Each time the diamond changes hands it must be accompanied by a warranty on invoices stating that the diamond is not from a conflict source. This is called the System of Warranties. Manufacturers/traders are required to audit these System of Warranties statements on their invoices as part of their annual audit process and to keep records for 5 years.

Retail (System of Warranties):
Retailers are responsible for ensuring that the diamonds they stock and sell carry a warranty that they are conflict free. Retailers are required to audit these Systems of Warranties statements on their invoices as part of their annual audit process and to keep records for 5 years. The System of Warranties does not require the warranty to appear on the consumer's receipt. But by implementing measures for greater supervision, compliance and accountability, through the System of Warranties, within the diamond trade, consumers can be assured that the diamonds they buy are from sources that are free from conflict. Consumers can ask for assurances from their retailers that their diamond is from sources free from conflict.

For more details read The Kimberley Process Communiqué and The System of Warranties.

Useful links