WFDB reaches Consensus on Key Issues at Presidents Meet in India

The heads of diamond exchanges affiliated to the World Federation of Diamond Bourses (WFDB) have concluded their biennial President Meeting on November 15, 2005 at Mumbai. One firm decision of prime importance by the forum was a decision to stay out of the Council for Responsible Jewellery Practices (CRJP) and the approval of a comprehensive plan that will result of the official launch of the WFDB Mark at the World Diamond Congress in June 2006.

The presidents also warned bourse members against handling rough diamonds originating from the C�te d�Ivoire. The relationship between the WFDB and the CRJP was discussed at length during the first session of the two-day meeting. Presidents took unanimous decision to stay out of the recently created CRJP. WFDB made clear that its decision in no way represented any backtracking in its absolute commitment to the principles of consumer confidence. The forum explained that the structure of the CRJP was problematic and did not account for the role played by representative organizations in the industry. The WFDB Mark is a trademarked logo, which approved members of WFDB-affiliated diamond exchanges to display to clients and suppliers. It confirms that they abide by the World Federation�s better business principles. The WFDB presidents gave the go ahead to a program, which will enable the launch of the WFDB Mark in seven months time. WFDB President Shmuel Schnitzer stressed the World Federation�s commitment to maintaining consumer confidence. It lies at the very heart of the WFDB Mark he stated. He underlined the unique position of the WFDB with words, �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. 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 its sister bourses.�

A document called the World Federation Code of Principles, or WFCOP, will be drawn up, clearly listing the conclusions drawn from the various relevant resolutions passed by WFDB over the past several years relating to the issues concerning consumer confidence. Bourse members who are permitted to display the WFDB Mark will be required to sign the document, by which they formally commit to uphold these principles. A media campaign will be undertaken as part of the program, in order to instill in the public�s consciousness the symbol and the significance of the WFDB Mark. Following a discussion on the progress of the Kimberley Process, the WFDB presidents echoed a call from the chairman of the Kimberley Process to ensure that no rough diamonds originating from the northern region of the C�te d�Ivoire (Ivory Coast) be traded, since such merchandise is currently being embargoed by the legitimate diamond trade.

In a joint statement with IDMA, the WFDB recognized the provisions of the U.S. Patriot Act, and noted that similar anti-money laundering (AML) legislation in other countries exists or is being prepared with the same goals. The WFDB and IDMA encouraged U.S. regulators to accept that non-U.S. dealers who fully comply with their countries AML legislation in the same way as they accept U.S. dealers who comply with the U.S. Patriot Act regulations. WFDB and IDMA stated they will work with government authorities to encourage international compliance with AML laws. In its discussion on the certification of diamonds that have been color-treated through a High Pressure-High Temperature (HPHT) process, the WFDB reiterated its earlier call that laboratories issuing grading reports for such diamonds do so on certificates that are visibly different from those issued for non-treated natural diamonds. Noting that the HRD Certificates Department has indeed adopted such a policy, the WFDB called on the GIA to follow suit. Thomas Moses of GIA promised that his organization will consider the matter further.