Members of the Israel Diamond Exchange gathered to discuss once again the impact of the Prohibition on Money Laundering Law would have on the local diamond industry. The first part of the law would be made effective on September 15, and would encompass client identification, reports say.

Diamond Controller Shmuel Mordechai informed that pursuant to that in the month of October the IDE members would be subject to supervision by his office, more so in the area of client identification, as per reports. He further added that the initial steps would be to provide people with an understanding on how to adapt their business and irregularities would be strictly dealt with. There would be a visit by the representatives of the AFTA who would check the implementation of the law, as per Dr. Shlomit Vagman-Ratner, Acting Director at the Israel Money Laundering and Terror Financing Prohibition Authority, reports say. Check-ups will also be undertaken from among IDE members.

General Counsel at the IDE, Osher Partok Rheinisch mentioned that one must know their clients well from the regulator’s standpoint as well as a business standpoint and IDE companies should appoint a point-person to implement the law and that each member of the company be informed about the new cash payment policies. The law is said to be different in Israel from other parts of the world as in it also includes synthetics, as per reports.