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Antwerp
By Marc Goldstein
The Antwerp World Diamond Centre (AWDC) recently organized a new antimoney-laundering (AML) seminar to provide attendees with the latest developments related to the diamond industry. “There are two major changes that were confirmed,” said Trisevgeni Stavropoulos, AWDC head of legal and compliance. “First, it’s now certain that the Belgian law will most probably impose a zero cash limit for all sensitive sectors such as gold and diamond trade. The timing of the implementation however is still not certain but all clues tend to point toward some time around the turn of the second half of this year.”
The second important aspect of the expected changes was the announcement of the implementation of My KYC Bank, a “know your customer” database by the Gem & Jewellery Promotion Council (GJEPC) of India. “This database will enable users to do their KYC due diligence only once. Indeed, once a company — be it a diamantaire or gem and jewelry company — has uploaded the proper and required information, all that’s needed is to send an invitation to whichever company the diamantaire wants to do business with. When the second company agrees, both can instantly access all KYC information, and complete all AML due diligence on the spot,” elaborated Stavropoulos. Any change in the profile will immediately be reflected in all connections. It’s a system that will give full control over whom to share the profile with. Last but not least, the system is expected to allow banks and other financial intermediates to have access, which should help in building confidence of nondiamantaire stakeholders and ease business relations. “We hope Antwerp-based diamond companies will soon have access to the system,” Stavropoulos concluded. However, even though the project appears to be the solution regarding KYC, the AWDC has still to formally approve it. The clear distinction made between AML-compliance regulations and cash limit regulations should be noted. The cash limit applies to business conducted in Belgium, while the AML regulation is global. In other words, an Antwerp-based diamantaire could legally sell and invoice from Belgium, deliver and get paid the full amount in cash in Hong Kong and then deposit the money in its Hong Kong account and wire the money back to Belgium. However, it would have to follow the KYC policy applicable in Antwerp.
An edict dated 1447 found in the city archives confirmed that Antwerp has over 570 years of diamond heritage, which is even more than Amsterdam, making it the oldest diamond center. Drawing on this framework, the city of Antwerp has decided to dedicate this year to highlighting and emphasizing the richness and the importance of the diamond industry to the city with events that will run from October 2017 to February 2018. As part of this effort, the city plans to initiate a communication and marketing campaign with the tagline, “In Antwerp, we speak diamond.” “The fascinating, historic detail in Antwerp’s city records shows the importance of the diamond trade and the authorities’ concern for ethical trade. Venice and Amsterdam played an active role in times past, but no other center comes close to the thick red line Antwerp has drawn since 1447, with its servicing of the global trade. The archival treasure is a fabulous resource for the international diamond and jewelry trade; what is wonderful is the rich and compelling content for both B2B and B2C,” elaborated Marcel Pruwer, an industry consultant and former president of the Antwerp Diamond Bourse and one of the initiators of the project, speaking at an industry-only premiere presentation of the full program, organized by the city and the AWDC. A significant amount of money has already been spent on this effort. Antwerp has invested millions in the development of the new diamond museum, named DIVA. “The City is going to use all its channels to promote this diamond year,” said Margaux Donckier, AWDC head of PR & Communications and spokesperson. In addition to the opening of the DIVA museum, various other events are planned, including: an exhibition at the Museum aan de Stroom (MAS), entitled “Dazzling Desire,” courses on diamonds for international students in collaboration with the Antwerp Summer University, workshops organized in the diamond district, school projects, and the African Diamond Dialogue program, where African leaders will be invited to share their views on the global diamond industry. “We’ve been a very closed community and this might be the first time we really open to the public. With the involvement of us all, this is something that will put Antwerp on the map in many aspects,” concluded Karen Rentmeesters, AWDC head of PR & Communications. Article from the Rapaport Magazine - April 2017. To subscribe click here.
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