A meeting about the new regulations, attended by many IDE members, took place at the bourse with the participation of the heads of the local diamond organizations to explain to the diamond sector its commitments.
The meeting on the subject of the implementation of the anti-money laundering law took place today (Tuesday) at the Cullinan restaurant.
The meeting explained to the diamond sector what they must commit to doing under the money laundering law, especially with regard to reporting on cash transactions and identifying unusual transactions and reporting.
IDI Chairman Shmuel Schnitzer explained: "The law on prohibition of money laundering is not an Israeli invention. It is done as part of a global process to combat money laundering, which intensified following the events of 11 September 2001 with the fall of the twin towers in New York. That terrorist event shocked the Americans and caused them to enact the Patriot Act. Most advanced countries in the world, including Israel, have followed in the footsteps of the United States."
"The fact that Israel enacted the money laundering law was not sufficient to remove it from the blacklist of countries that do not conform to international requirements. Israel also had to establish an authority and to determine under the law regulations for financial institutions' reporting. The diamond sector is in line with banks, accountants, lawyers, and others that are financial institutions. Anyone who deals with large funds have to obey the law. This is an international requirement and if we don't stand by it, it will place a stain not only on us, but on the whole State of Israel."
Schnitzer added that the law was written after prolonged discussions with the diamond industry and the Israel Diamond Institute took upon itself the sectorial activities involved in presenting the anti-money laundering law for those involved in dealing in diamonds, explaining its meaning and its implications for the industry and providing advice and guidance to members. "The Institute provides members with professionals who can answer every question and help in their preparations. I appeal to all to use the consulting service offered by the Institute, so that there will not be any misunderstandings, " he said.
Diamond Controller Shmuel Mordechai, said: "The money laundering decree went into effect as early as September 2015, but the part concerning the reporting obligation only comes into effect in September 2016, so that we have four months before the full implementation of the law. We worked hard with the heads of the industry in order to ensure that diamond firms can implement the changes easily. Within two weeks, we will begin training reviews in various offices designed primarily to explain how to work in accordance with the law. One CPA office with four accountants has been appointed by Israel Police to handle this and they will carry out the tests at their offices.
Lawyer Shmuel Einy, who was on the team that dealt with the subject of the AML order, made a presentation on the "Prohibition of money laundering and terrorist financing". Diamond firms can receive a booklet explaining the law in the Legal Department of the Diamond Exchange.
