Diamond Watchlist

 

For over a decade, Partnership Africa Canada has been studying the diamond industry, the countries where diamonds are mined, traded and processed, and the Kimberley Process, which was designed to regulate the trade in rough diamonds as a way of ending the “conflict diamond” phenomenon.

The Diamond Watchlist summarizes our current concerns about diamonds, governments and Kimberley Process oversight in areas where perennial problems seem never to be solved. The list is an advisory to consumers, the retail trade, the media and others concerned that diamonds in some countries still fail to meet the tests of adequate regulation, good business practice and common decency.

This Watchlist contains information about countries that, in our estimation, pose serious problems in terms of their KP compliance, where the Kimberley Process has failed to act, where the risk of violence is strong and/or where human rights are being abused in pursuit of diamonds.

Countries listed here are ranked according to their risk, as determined by expert assessment, according to the quality of their internal diamond controls, the quality of Kimberley Process oversight, and the most current normative standards associated with ethical business practices.

PAC evaluates a number of factors in determining the risk assessment of a particular participant country. These include, but are not limited to, specific concerns around the following issues:

  • documented cases, or concerns, about diamond-related rights abuses;
  • poor internal controls or breaches of the KP’s closed trading system;
  • corruption and loss of revenue to national treasuries;
  • opaque process of awarding diamond concessions by government authorities;
  • links to known criminal networks;
  • lack of cooperation by a participant country with the KP or international law enforcement agencies.

In general, the greater the combinations of problems areas listed above, the worse the score. While these are the more commonly known areas of concern, PAC recognizes that criminality does not remain static and is constantly evolving. As such we rate participants according to new risks and standards as and when they emerge. While the main focus of the Watchlist is KP participant countries, industry and individuals will also be subject to scrutiny where exceptional circumstances warrant such notice.

The Diamond Watchlist is updated on a regular basis.