India's Diamond Trade Being Used For Money Laundering

By siliconindia | Monday, 03 February 2014, 10:10 Hrs

The report states that in a number of suspected cases of diamond smuggling, a majority of funds was transferred to Belgium from accounts in Hong Kong, China, Israel, UAE, the U.S. and India.

In cases of suspicious money laundering instances of diamond trade, the funds transfer occurred from India, Israel and Switzerland to the UAE. "India reported a relatively large number of sanitised cases (12) in which suspicious transaction reports were received (in connection with diamond trade). In these specific cases, Hong Kong, China is a destination for illicit cash flows...," the report said.

Belgium, Brazil, China, Canada, the U.S., the United Kingdom and Switzerland also feature alongside India in this report. The report also puts forth its findings which comprises enhancement of regulatory mechanism to combat and control laundering and financial crimes in this trade worldwide.

"Diamond trade, as an international phenomenon, needed a complete and global analysis to understand and determine money laundering and terrorist financing threats and vulnerabilities related to this unique trade," the report stated.

This report has aimed not only to provide a general overview of the diamond trade with its specific business practices, funding methods and risks, but also seeks to highlight a number of significant issues that require further consideration.

The report has identified different issues that require consideration as to the sufficiency of the current measures to mitigate new risks, it stated.

Source: PTI