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Illicit Market in Diamonds

NCJ Number
193335
Author(s)
Rebecca Tailby
Date Published
January 2002
Length
6 pages
Annotation
This paper examines the nature and extent of illicit activity in the diamond industry, reviews Australia’s experience with diamond-related crime, and considers potential local, national, and international responses.
Abstract
Internal regulation and security approaches by the diamond industry have not prevented organized crime groups from targeting the industry. An estimated 20 percent of the worldwide rough diamond trade is illicit. The industry must maintain a significant level of responsibility for addressing the growing trade in illicit diamonds. However, law enforcement and government agencies have the potential for complementary roles in policymaking and investigation of illicit activity in the diamond industry. Australia needs to establish a coordinated national framework for dealing with criminal involvement in the diamond industry and other industries related to natural resources, although Australia’s privacy legislation may impede information sharing and limit the ability of police agencies to investigate organized crime involvement in diamond theft and to pursue lost revenue. A national approach would aid international cooperation on this issue as well. International actions already include the industry’s development of an international chain-of-custody certification system for rough diamonds and should also include the recently signed United Nations Convention against Transnational Organized Crime to address the forfeiture of criminal assets from illicit diamond sales. Australia could also take a proactive role in examining its existing national capacities and encouraging international recognition and response to this international criminal problem. 14 references