Combatting conflict diamonds

This is a crucial juncture for our industry. We are enjoying a period of success with growing consumer demand for diamond jewelry driven by new, dynamic marketing initiatives. We can look back at the last few challenging years with justifiable pride, but we must keep up the momentum of all our efforts — both in marketing and in the area of consumer confidence and ethical standards — if we are to guarantee the success and prosperity of our industry.

Of the difficulties we have faced, none was a greater threat than that of conflict diamonds. However, together with governments and non-governmental organizations (NGOs), we have come a long way with the Kimberley Process to halt human suffering, end the funding of conflict, protect the integrity of our product, and secure the legitimate chain of supply. The hugely important role of the leaders of the industry through the World Diamond Council cannot be underestimated.

We all agree, I believe, that there is still work to be done in making the Kimberley Process fully effective.

The NGOs rightly raised concerns about monitoring, and I am pleased to see that the intergovernmental “peer review” mechanism is beginning to address those concerns. On the industry side, we must all continue to ensure that we understand and comply with the provisions of the Kimberley Process.

For me, one of the most notable things about the conflict diamonds issue was the way in which the entire spectrum of the diamond world came together to meet the threat. That unity has been at the heart of our success in maintaining the legitimacy of the diamond industry, enhancing its reputation and protecting the consumer. It is of paramount importance that we preserve that unity, aligning ourselves closely in common cause to defend the integrity of the natural diamond so that the industry can continue to grow and thrive as a global business.

Let us make no mistake, there are new challenges ahead, and we will need all the vision, leadership, unity and co-operation we can muster to meet whatever the future holds.

Foremost amongst those challenges is the vulnerability of the diamond and jewelry industry to misuse and abuse by criminals and the perpetrators of terror. The governments of the free world have recognized that financial irregularity, “informal” banking, and tax evasion are just a short step on the road to money-laundering and the financing of terrorism. With these things in mind, governments have introduced laws and regulations to govern financial institutions. By definition, that means all of us in the diamond industry.

No industry welcomes new rules and regulations; they generally retard the smooth flow of business. But this is different. In a world where our personal security and that of our families and communities is under real and present threat, we must take action. We must embrace the new legislation, understand its provisions as they apply to us individually and collectively, and comply fully, wholeheartedly and without reservation. The World Diamond Council, and the rest of us, have a clear duty to ensure this message is heard and understood throughout the industry.

Our individual national governments have also passed, or will be introducing, measures to protect us all. It is incumbent on them, and on the authorities in all the diamond centres, new centres as well as old, to insist on the highest standards of financial rectitude.

As with conflict diamonds, there is an opportunity here for the international diamond industry to demonstrate that it is a proud and steadfast “corporate citizen,” working with all other parts of society to safeguard and maintain a world in which we can all live in peace — a world, too, where our beautiful and unique product — the natural diamond — can continue to be the ultimate gift of love and recognition, untainted by association with crime, conflict or terror.

— The author is the chairman of De Beers. The preceding is an edited version of a speech he gave at a World Diamond Council meeting held in Dubai earlier this year.