DIFFERENT ANGLE by Kenneth Rijock
Last Friday, 27 October, the United Nations Security Council lifted its six-year ban on the export of "blood diamonds" from Liberia that was intended to halt the illicit sales, which have funded several wars in West Africa. Liberia, whose successive civil wars were in large part funded by the sale of precious gems illegally acquired by rebel groups who controlled the diamond-producing regions, is stabilised, and has now been accepted by the international community once again as a lawful diamond exporting nation. On 26 April, 2007, Liberia accepted the Kimberly Process Certification Scheme, whereby the origin of each gem is documented as being from sources free from armed conflict.
- Sierra Leone
- Angola
- Ivory Coast
- Democratic Republic of the Congo
Money laundering reporting officers and compliance officers, who have been examining international funds transfers amongst clients for evidence of blood diamond sales, can now relax their precautions regarding Liberia. Any protocols in place in your compliance department regarding funds transfers to or from Liberia, or with precious gems bank customers may need to be updated.
One should, however, bear in mind that money launderers may seek to take advantage of this UN resolution to move illicit funds from other criminal enterprises that may masquerade as Liberian sales proceeds. This will particularly critical during the next couple of weeks, whilst the global financial community adjusts to Liberia's new status. Watch for any unusual transactions purporting to be Liberian precious gems payments, as they may in reality be criminal proceeds in some other, illegal, industry.
The facts and opinions stated in this article are those of the author and not those of World-Check. World-Check does not warrant the accuracy of any facts and opinions stated in this article, does not endorse them, and accepts no responsibility for them.
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