UN Security Council Resolution S/RES/1295 (2000) on Angola (18.04.2000)

“17. Welcomes the steps announced by the Government of Belgium on 3 March 2000 in support of the more effective implementation of the measures contained in resolution 1173 (1998), welcomes also the establishment by the Government of Belgium of an inter-ministerial task force to curb sanctions violations, further welcomes the measures taken by the Diamond High Council, in conjunction with the Government of Angola, to render sanctions more effective, invites the Government of Belgium and the Diamond High Council to continue to cooperate with the   Committee to devise practical measures to limit access by UNITA to the legitimate diamond market and welcomes their public affirmations in this regard, and further invites other States hosting diamond markets, as well as other States closely involved with the diamond industry, also to cooperate with the Committee to devise practical measures to the same end and to inform the Committee of measures taken in this regard;”

UN Security Council Resolution S/RES/1306 (2000) on Sierra Leone (05.07.2000)

“Welcoming the ongoing efforts by interested States, the International Diamond Manufacturers Association, the World Federation of Diamond Bourses, the Diamond High Council, other representatives of the diamond industry and non-governmental experts to improve the transparency of the international diamond trade, and encouraging further action in this regard.

 Emphasizing that the legitimate diamond trade if of great economic importance for many States, and can make a positive contribution to prosperity and stability and to the reconstruction of many countries emerging from conflict, and emphasizing further that nothing in this resolution is intended to undermine the legitimate diamond trade, and encouraging further action in this regard.(…)

10. Encourages the International Diamond Manufacturers Association, the World Federation of Diamond Bourses, the Diamond High Council and all other representatives of the diamond industry to work with the Government of Sierra Leone and the Committee to develop methods and working practices facilitate the effective implementation of this diamonds.”

  Final Report of the Monitoring Mechanism on Angola Sanctions  S/2000/1225 (21.12.2000)

“X. Sanctions on diamond trading and financial assets

 195. In our two visits to Belgium, we held talks with the Ministry of Economic Affairs, the Diamond Office, the Diamond High Council and the Ministry of Foreign Affairs. It was clear that all the bodies concerned are taking considerable care to implement the United Nations sanctions. The Government of Belgium has informed the Mechanism that they are continuing to examine the possibility of introducing a law enabling the prosecution of Belgian nationals for crimes committed outside the Belgian territory. An inter-cabinet task force works in the diamond sector to increase transparency within the sector and to exchange information on problematic areas. Considerable analysis has been carried out on imports from countries whose production may be contaminated with UNITA diamonds.

 196. The diamond trading centre of Antwerp imported rough diamonds worth $10 billion in 1999. All diamonds enter the Diamond Office and the parcels are checked for conformity to import procedures. At the Diamond Office, a “watchlist” for diamonds is now in place, which lists 15 “sensitive” African countries whose diamonds might include those produced by UNITA or the Revolutionary United Front of Sierra Leone (RUF). The Diamond Office keeps detailed information on imports of these “sensitive” diamonds into Antwerp. These and other suspect parcels, those whose country of origin is in doubt, or which do not match the declarations made on the parcel, are examined by Customs on receipt. Parcels of diamonds of mixed or unknown country of origin cannot be sourced, of course; these accounted for less than 30 per cent of the trade in a five-month study carried out by the Diamond Office. Such parcels are also coming under closer scrutiny. As far as possible, dealers have to declare the country of origin of their stones.

 197. Loopholes still exist, however, some beyond the control of any single Government. Dealers who are prepared to buy rough diamonds from UNITA have several options: they can smuggle goods into cutting centres; or they can seek to import through less scrutinized routes, either cutting centres or countries with lower levels of control, or through tax havens. For example, once diamonds are imported into the European Union, they do not require an import license into Belgium, only a statistical report of import/export. There are substantial imports into Belgium from European Union countries, including the United Kingdom, the largest single importer, which imported diamonds valued at $2.55 billion by mid-2000. Other European Union countries import rough diamonds into Belgium, though on a much smaller scale. The Mechanism has learned that diamonds from Angola have been smuggled into Portugal, for example, although whether these originate with UNITA is not known. Open markets make the task of laundering diamonds easier, as does the trade through tax havens.”

 XI. Recommandations on  diamonds and finance

 235. Member States should consider implementing the certificate of origin scheme with the minimum of delay. Those countries that lack the technical resources to implement the system should be aided in setting it in place. This will both protect the legitimate industry and begin to clarify the problem of illicit diamonds.

236. The certificate of origin system should be supported by the licensing of diamond buyers, so that diamond purchases can be more closely tracked from mining region to market. The ASCorp system of controls could be considered a model of how this can be done, and should be monitored for its effectiveness. We further suggest that the World Diamond Council could be involved in setting up such a system, so that diamond buyers and dealers credentials are standardized worldwide.

237. The relevant Ministries of diamond-producing countries should profile the production from their mines, recording the characteristics of diamonds from each mine in detail. Such a record would enable parcels of diamonds whose origin is disputed to be checked by comparison with available data with a greater degree of certainty than is currently the case. This is particularly urgent in the case of alluvial diamonds.

238. Diamond centres should standardize their statistics and customs codes as a matter of urgency, to enable monitoring of the movement of illicit or conflict diamonds by the authorities. Diamond offices may wish to consider convening a conference to examine this question at the earliest opportunity and to examine the Belgian system.”

   Report of the Panel of Experts concerning Sierra Leone S/2000/1195 (20.12.2000)

 “IX.. RECOMMENDATIONS ON DIAMONDS

 156.  In order to better regulate the flow of rough diamonds from producing countries, a global certification scheme based on the system now adopted in Sierra Leone is imperative. It will give added impetus to current discussions on this subject if the Security Council endorses the concept of a global certification system.

 157.  In the short run, and in the absence of a global system, it is recommended that certification systems similar to that adopted by Sierra Leone, be required of all diamond exporting countries in West Africa, with special and immediate reference to Guinea and Côte D’Ivoire, as a protective measure for their indigenous industries and to prevent their exposure to conflict diamonds. If this has not been completed within a period of six months, the Security Council should impose an international embargo on diamonds from these countries.

 158.  The Panel further recommends a complete embargo on all diamonds from Liberia until Liberia demonstrates convincingly that it is no longer involved in the trafficking of arms to, or diamonds from, Sierra Leone. The embargo should not be lifted until this condition has been met, and until Liberia too has joined the proposed standardized certification system.

159.  The Security Council should place an immediate embargo on trade in all so-called Gambian diamonds until such time as its export of diamonds can be reconciled with imports.

 160.  Other diamond exporting countries in the region have been designated by the Belgian government as ‘sensitive’ countries, where special attention to imports is required. In addition to the three countries suffering directly from conflict diamonds and those mentioned above, these include Uganda, Central African Republic, Ghana, Namibia, The Congo Brazzaville, Mali, Zambia and Burkina Faso. This list is commended to other major importing countries, including Switzerland, South Africa, India, Israel, the United Kingdom and the United States. Invoices from these countries need to be thoroughly checked, and where there is doubt about either provenance or origin, parcels should be seized until the authorities have checked the facts. Delays in processing will increase the cost of doing business and will encourage better paper work. Forfeiture of improperly labelled goods will discourage the habit decisively

 161.  Urgent attention should be given to extending a Sierra Leone-style certification system to these countries as soon as possible.

 162.  The United Nations, the World Diamond Council and the import control authorities of all rough diamond importing countries should be vigilant for other exporting countries, or for countries in the future, where trade in diamonds has little to do with domestic production or legitimate trading.

 163.  It is essential, and a matter of urgency, that major trading centres (Belgium, the United Kingdom, Switzerland, South Africa, India, the United States and Israel) come to a common agreement on the recording and public documentation of rough diamond imports that is consistent from one country to another, and that clearly designates the country of origin in addition to country of provenance.

 164.  An annual statistical production report should be compiled by each exporting country and gathered into a central annual report, compiled by the World Diamond Council and/or by the certification body that is expected to emerge from the ‘Kimberly Process’ of intergovernmental negotiation. Countries of origin must be distinguished from countries of provenance.”