(Rapaport…February 6, 2003) The Reserve Bank of India now requires that all Indian banks obtain a pledge of good faith from clients being given extended credit for diamond related business.
The pledge states that the client is not knowingly dealing in “conflict diamonds.” In addition, the client must promise to refrain from trading in diamonds from Liberia and Sierra Leone. These countries are known to be major centers for illegal diamond trading and smuggling.
The client must agree that all credit entitlements will be withdrawn if they are caught dealing in conflict diamonds.
India has been very strict about Kimberley Process compliance. Shortly after the Kimberley Process was implemented on January 1, 2003, India halted imports from Belgium claiming its certificates were not fully compliant with Kimberley Process regulations.