Israeli officials brief diamond traders on new AML and CFT regulations

Israeli officials have briefed the country’s diamond dealers on how new anti-money laundering (AML) and countering financing of terrorism (CFT) measures will impact on the industry.

New AML and CFT legislation comes into force in 2016 and is expected to have a significant impact on the way diamond traders do business.

Client tracking
A recent meeting attended by more than 100 diamond traders heard details of the new legislation from Diamond Controller, Shmuel Mordechai; Deputy General Counsel of the AML and CFT prevention unit in the ministry of justice, Mia Lederman, and legal adviser, Shmuel Eini.

The new legislation calls for the recognition and identification of clients in transaction documents, which must be kept for five years.

Reporting requirements
Traders will also have to differentiate between standard and special transactions and appoint a coordinator in large offices to deal with the authorities on AML and CFT matters.

The new law also provides for a committee that will organise support and training for people working in the diamond sector.

From September 2016, the authorities will be able to perform audits and impose sanctions on organisations and individuals that contravene AML and CFT regulations.

Categories: Trade Based Financial crimes News

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