The Israeli government has revised the country’s diamond industry risk rating from high to medium, following measures implemented by diamond businesses to improve transparency and compliance with international financial guidelines.

The move is “a vote of confidence in the Israel diamond industry and a step towards the establishment of a free trade zone” in the Israel Diamond Exchange (IDE), commented IDE President Boaz Moldawsky.

The risk rating, published in November in a comprehensive review of Israel’s anti-money laundering risks, was lowered from 3.7 to 2.7. The chapter on the diamond industry cited important steps that were taken by the industry to cut risks, including the tax settlement reached with the industry, the incorporation of anti-money laundering guidelines within the IDE regulations and positive results of several inspections by the Ministry of Economy’s Diamond Controller. 

The government’s decision came after many years of hard work on the part of all organisations within the industry – the Israel Diamond Institute, the IDE and the Israel Diamond Manufacturers Association to bring the industry up to full transparency and compliance with anti-money laundering guidelines.

Moldawsky added that this latest development will positively impact the industry’s relations with financial institutions and government authorities.