Similarly to the new regulations imposed on the U.S. diamond and jewelry industries under the USA PATRIOT Act, the Canadian law would require reporting of cash transactions of more than $10,000 (slightly less in Canadian currency than in U.S. dollars), would require closer examination of money transfers and would amend the country�s income tax law to make reporting easier.

The proposed law was first developed under the previous Liberal government and is based on an official white paper that warns that Canada�s burgeoning diamond and jewelry industry, which has been bolstered by diamond mines opening across the country�s Far North, creates opportunities for money launderers.