This important revelation on the misconduct of diamond merchants located in the United States is based upon a report by diamond analyst Chaim Ivan Zohar, author of Diamond Intelligence Briefs (DIB). For those who do not know Zohar, he is considered a heavy weight journalist, authority and insider on diamond trading issues.
Zohar article exposes loopholes and a slack security system allow money laundering. Quoting: “If one really wants to use the KPCS to launder money or to move conflict diamonds onto the market, it is an open secret that one of the easiest ways to do so is through the US.”
DIB is a subscription based publication. Here is a link to an article that reports on Zohar’s findings in the UK Sunday Mail. http://www.sundaymail.co.zw/index.php?option=com_content&view=article&id=36597:us-hypocrisy-on-diamonds-exposed&catid=38:local-news&Itemid=131#
It is astonishing to consider the US at the center of diamond trading. I had thought it was through India, based upon the investigative reporting in this article in Foreign Policy: http://www.foreignpolicy.com/articles/2013/01/02/rough_cut?page=0,0&wp_login_redirect=0#sthash.0JkATncd.dpbs
Apparently, the corruption is even systemic than most had imagined… but no one who has been following diamond issues closely should be surprised about this.
Unfortunately, the vast majority of the public and jewelers continue to ignore issues like this, and the diamond selling party goes on.