DIFFERENT ANGLE by Kenneth Rijock
With the strong OFAC sanctions position presently being taken by the United States against the generals ruling Burma, it might be prudent for UK MLROs and compliance officers to take a look at the increasing levels of risk with their clients who are importers of rubies. The so-called "Blood Rubies," precious gems exported from Burma for the financial benefit of its military leadership, are believed to net the generals at least US$60m each year, and this figure may be conservative. Although such precious gems are not yet sanctioned in the UK, they are the subject of an industry boycott in the United States, due to the 2003 American ban on Myanmar's products, due to human rights violations.
dissent, it is logical to assume that efforts are in progress to convince the UK government to follow the US lead to impose total sanctions against the Burmese regime, including the precious gem industry.
To add to the dangers, there is widespread smuggling that bypasses the state-owned monopoly, Myanmar Gem Enterprises, and much of that illicit trade ends up in Thailand. Are London jewelers practising " willful blindness?" We cannot say, but rather than read about how certain clients are exposed in the media for trading directly with what human rights NGOs call a fascist regime, Can anyone forsee reputation damage to your bank coming out of this?
It might be wise to ascertain just how close your clients are to those Burmese generals.
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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