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US buys diamonds which finance civil wars Original Source Link: (May no longer be active)    http://today.reuters.com/news/articlenews.aspx?type=topNews&storyID=2006-09-27T224105Z_01_N27303660_RTRUKOC_0_US-MINERALS-DIAMONDS-CONFLICT.xml&WTmodLoc=NewsHome-C1-topNews-7 http://today.reuters.com/news/articlenews.aspx?type=topNews&storyID=2006-09-27T224105Z_01_N27303660_RTRUKOC_0_US-MINERALS-DIAMONDS-CONFLICT.xml&WTmodLoc=NewsHome-C1-topNews-7 Conflict diamonds may be entering the U.S.: GAO Wed Sep 27, 2006 6:41 PM ET WASHINGTON (Reuters) - "Conflict diamonds" sold illegally to finance civil wars, may be making their way into the United States, despite an international pact to end trade in the gemstones, the Government Accountability Office said on Wednesday. The United States, the world's largest consumer market for diamond jewelry, does not inspect rough diamond imports to certify their origins, a GAO report said. It added that because of spotty statistics on diamond imports and exports, the country is "still vulnerable to illicit trade of rough diamonds." Over the last decade, sales of diamonds have bankrolled violent factions in countries such as Liberia, Sierra Leone, the Democratic Republic of the Congo and Angola. These unpolished and uncut stones became known as "conflict diamonds." "Although many of these conflicts have now ended and the international community has taken steps to gain control of the rough diamond trade, the United Nations and other sources report that illicit trading of rough diamonds still exists and could potentially finance civil conflicts as well as criminal and terrorist activities," said the GAO. In 2002, a consortium of nations launched the Kimberly Process Certificate System to verify the stones' origins, and block conflict diamonds from the market. Currently 46 countries belong to the system. The United States passed the Clean Diamond Trade Act in 2003 to parcel its obligations to a variety of governmental agencies, including the Department of Homeland Security. A private, nonprofit group called the U.S. Kimberley Process Authority issues certificates for conflict-free diamonds. But the GAO said the United States only now is developing a plan to oversee the group. In response to the GAO report, the Department of Homeland Security pledged to require periodic examination of rough and polished diamond shipments using a random selection process. The department also pledged to work with the State Department to record more detailed information about diamonds that have entered the country. © Reuters 2006.

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