OFAC Removal

OFAC Diamond Trading Designations

Q: What is the source of diamond trading sanctions?
A: The 2003 Clean Diamond Trade Act requires the U.S. President to implement the Kimberley Process Certification Scheme for rough diamonds imported into the U.S.

Q: What is the Kimberley Process Certification Scheme (KPCS)?
A: The KPCS is a set of procedures the U.S. and 47 other nations (Participants) agreed on to ensure that those countries did not support rough diamond trading with countries in which the trade has fueled conflict and human rights violations. The KPCS requires that each shipment of rough diamonds imported into a Participant must be: Sealed in a tamper-resistant container and Accompanied by a Kimberley Process Certificate, which includes: Country of origin, Unique numbering, Date of issuance and date of expiry, Name of issuing authority, Identification of exporter and importer, Carat weight/mass, Value, and Validation by the exporting authority among other things. 

Q: Can a U.S. person or a noncitizen present in the U.S. import rough diamonds from a country that does not participate in the KPCS?
A: No. Shipments from countries that do not participate in the KPCS are prohibited along with shipments between the U.S. and other Participants if they are not controlled through the KPCS.

Q: Who determines which countries participate in the KPCS?
A: The U.S. Department of State is responsible for identifying all the Participants eligible for trade in rough diamonds and periodically publishes an up-to-date list in the Federal Register. 

Q: What is the penalty for trading with a country that does not participate in the KPCS?
A: The Clean Diamond Trade Act allows for criminal penalties of up to $50,000 for each violation for corporations and individuals, and the potential for ten years in prison for individuals.

Q: Are there any other obligations that the KPCS imposes on other Participants?
A: Yes, all Participants are expected to prohibit any shipments that are not controlled by the KPCS coming from other Participants, while completely refraining from trading in rough diamonds with non-participants.