WFDB states it ‘disassociates itself’ from the FATF report

Expressing its views on the recent report by Financial Action Task Force (FATF), Ernie Blom, President of the WFDB said, “We disassociate ourselves from the report that was released by the FATF”. The World Federation of Diamond Bourses (WFDB) was disappointed at learning of the money laundering typology report released by the FATF.

The WFDB noted that neither did FATF approach the WFDB, a key global representative body of the diamond industry and the designated private sector liaison with the FATF, to either clarify nor consult it prior to releasing a report to the media that is fraught with unfounded accusations and inaccuracies.

When learning about the study on which the report was based, the WFDB approached the Presidents of Egmont and FATF offering to assist them, as according to WFDB, these bodies clearly lacked even the most basic understanding of the fundamentals of the diamond industry.

“It is our policy to work with international organisations when it affects the diamond trade. We are a very transparent organisation believing in working together to develop a credible and sustainable industry and to preserve the trust and confidence of all our stakeholders, including the consumers. The diamond trade is one of the most regulated industries in the world,” said Blom.

The WFDB did submit a full report to the FATF in 2013 commenting on the FATF draft report shown to them. Although the FATF promised to revert back to WFDB, there was ultimately no revert. An inaccurate report lacking in any understanding of the business or serious consultation with the WFDB, was then released to the media. The reports did not include comments by WFDB and FAFT refused to do the same. The FATF research and report was based on outdated information.

WFDB is taking up the matter in discussion at the WFDB’s EXCO meeting later this month in Singapore. “We disassociate ourselves from the report that was released by the FATF. As the Member Nations of the FATF were asked to approve the report mistakenly thinking that it had been prepared in cooperation with the WFDB, we reserve our right to present our positions directly to the members of the FATF Plenary and to take any other steps to protect the legitimate, ethics-bound interests of the international diamond industry. No one has a greater interest in the upholding of the FATF standards in our diamond industry than the WFDB members themselves. The misguided report will not cause us to waver in our resolve to preserve the integrity of our industry,” Blom stated.