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Antwerp Traders Face Random Compliance Probes
May 9, 2017 10:26 AM
By Rapaport News
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RAPAPORT...
Belgian inspectors are checking diamond companies’ offices at
random, the latest in a series of inspections to prevent money laundering, the
Antwerp World Diamond Centre (AWDC) has confirmed.
Inspectors from Federal Public Service (FPS) Economy — the
Belgian equivalent of an economy ministry — started the audits on April 18 and
will continue them until the end of June, the AWDC said in a note to traders
last month.
Such checks have taken place annually since 2014, with 30 to
40 companies scrutinized each time. Usually, the FPS informs the AWDC in
advance that it will be conducting random inspections. After that, the
inspections may occur with or without notice, performed by one or two FPS
Economy control officers.
Starting
this year, the inspectors have assumed the authority of police officers, enabling
them to impose fines and start investigations. If they find a company requires
further inquiries or prosecution due to serious violations, they send a report
to prosecution authorities. More minor wrongdoings can carry a fine of $544 (EUR
500) to $2,177 (EUR 2,000), depending on the company’s revenue and whether it
repeats the offense.
As such, the AWDC
has advised firms to keep their bookkeeping and client identification processes
up-to-date and have them available at the company offices.
Shashin Choksi of Antwerp-based Swati Gems recently
described how inspectors took five random supply invoices and five random sales
invoices from his company’s files as part of the probe. The inspectors then
asked for related documents, such as company registration papers and details of
shareholders, he told Rapaport Magazine, adding that he viewed such
procedures as an advantage to the local industry.
“No other diamond center is as strict as we are here,”
Choksi said. “Thanks to this asset, with the support of our government, we can
clearly make a difference, ensuring the reputation of our product better than
anywhere else.”
Belgian diamond traders have been required to comply with
the nation’s anti-money-laundering legislation since 2004. A 2013 royal decree added further regulations specifically for the diamond
industry.
Under the rules, traders are required to appoint someone who
will be responsible for anti-money-laundering activities. They must also carry
out client identification, verify documents the company receives, tell the
Belgian Financial Intelligence Processing Unit about any
suspicious transactions, and submit an activity report to the license service
of FPS Economy every year.
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Tags:
AML, anti money laundering, Antwerp, Antwerp World Diamond Centre, AWDC, Belgian Financial Intelligence Processing Unit, Belgium, Compliance, diamond trading, Federal Public Service Economy, FPS, legal, legislation, Money Laundering, Rapaport News, Regulation, Shashin Choksi, Swati Gems
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