IDE HOLDS MEETING ON NEW ANTI MONEY LAUNDERING ORDER

Hundreds of members of the diamond exchange attended a meeting on anti money laundering in the diamond sector held at the Cullinan restaurant last Thursday.

During the meeting, members received a detailed review of the main elements of the order against AML that takes effect next year, and the measures that will be available in the near future to implement them.

The meeting was held in the presence of IDE President Shmuel Schnitzer, the Diamond Controller Shmuel Mordechai, Deputy General Counsel of the anti-money laundering and terrorist financing prevention unit in the Ministry of Justice, Mia Lederman, and the exchange’s legal adviser, Attorney Shmuel Eini. The meeting was conducted by IDE General Manager Moti Besser.

Shmuel Schnitzer said: “I recently returned from a meeting of the Switzerland-Israel Chamber of Commerce in Zurich which mainly dealt with the issue of money laundering. I thank all those who worked to create a prohibition against money laundering in the diamond sector”.

Mia Lederman outlined the main points of anti-money laundering legislation to come into force and expanded on the topics that apply to the diamond sector. In the lecture that accompanied the presentation and the brochures that were distributed to participants, Lederman reviewed the international struggle against money laundering, including prevention, punishment and forfeiture of funds, and on applying the provisions of the legislation on trade in precious stones.

Shmuel Mordechai thanked his Deputy, Sigal Sindalowski, for promoting cooperation with the anti-money laundering authority and expanded on the remarks concerning applicability of the new order by Lederman.

Mordecai spoke about the most important points for members of the diamond sector, including: recognition and identification of clients in transaction documents and documentation which must be kept for five years, the difference between standard and special transactions, appointing a coordinator in large offices to deal with the AML authority, the means available to the Diamond Controller’s office for enforcing the order, including setting up a committee that can impose sanctions, and support and training of members of the diamond sector during the period of implementation of the provisions of the order.

“From September 2016, we will also perform audits, with sanctions against whoever does not perform in accordance with the demands of the law”, said Mordechai.

Meanwhile, Shmuel Eini said, “The money laundering order is the fruit of eight years work with the anti-money laundering authority. Contrary to concerns that were raised at the beginning of the process, this is an order that diamantaires can live with. The IDE’s aim was to create an order that would be acceptable to all parties”.

He further elaborated on the law, including the four conditions for the application of the order: signing an affidavit that the merchandise is for the diamantaire stated, reporting the transaction amount and unusual transactions, the obligations imposed by the order on dealers in precious stones, deals with public figures in foreign countries, and appointing someone at the diamond firm who will be responsible for working with the anti-money laundering authority.

At the end of his presentation, Eini answered a number of questions from the audience.

The anti-money laundering order will be published on the IDE’s web site when it comes into force.