WHITELOGO

Blog

Focus on

responsible business

The new declaration that to the WDC’s upgraded System of Warranties must place on B2B invoices, which stating that the goods being sold comply with KPCS, and thus meet the Kimberley Process’ standard of being conflict free, and includes a commitment that the sellers adhere to the updated WDC SoW Guidelines, which expressly support universally accepted principles of human and labor rights, anti-corruption and anti-money laundering (AML).

WDC LAUNCHES UPGRADED SYSTEM OF WARRANTIES, ADDING HUMAN RIGHTS TO CONFLICT-FREE COMMITMENT

 

This year the World Diamond Council (WDC), the body designated to represent the industry within the Kimberley Process, has marked the occasion with the official public unveiling of its upgraded System of Warranties (SoW).

Introduced in 2002, just before the launch of the Kimberley Process Certification Scheme (KPCS) at the start if the following year, the SoW is an industry self-regulation system that supports and strengthens the certification scheme, which is the system devised to eliminate conflict diamonds from the rough diamond trade, through the full length of the diamond distribution chain, from mine to retail.

The SoW requires professional buyers and sellers of rough diamonds, polished diamonds and jewelry set with diamonds to include a warranty statement on B2B invoices and memos each time a diamond changes hands, assuring the next buyer that it originated from sources in compliance with the KPCS, confirming the conflict-free origin of the merchandise.

Furthermore, in contrast with KP certificates that are issued only for rough diamonds and checked at points of export and import, the SoW is applied each time ownership of any diamonds changes hands within the industry and trade, both when they are being exported or imported, and when they are being sold in the same country.

“For the International Day of Peace 2021, the United Nations set the theme for ‘recovering better for an equitable and sustainable world,’ and called on us all to mark the occasion with acts of compassion, kindness, and hope,” said WDC President Edward Asscher. “We thus felt it an appropriate occasion to launch the upgraded System of Warranties. It reflects our vision for a diamond industry that is not only free of conflict, but through its actions also promotes safe and secure working environments, equal opportunity and proper governance.”

REVISED WARRANTY STATEMENT

Just like the original SoW introduced 18 years ago, the upgraded SoW requires that all sellers of rough diamonds, polished diamonds and jewelry containing diamonds include a declaration on B2B invoices stating that the goods being sold comply with KPCS, and thus meet the Kimberley Process’ standard of being conflict free.

The primary difference with the upgraded version is that it has revised warranty statement additionally includes a commitment that the sellers adhere to the updated WDC SoW Guidelines, which expressly support universally accepted principles of human and labor rights, anti-corruption and anti-money laundering (AML).

Specifically, the WDC SoW Guidelines reference the UN Guiding Principles on Business and Human Rights, the ILO Declaration on Fundamental Principles and Rights at Work, the UN Convention Against Corruption, and national AML guidelines that comply with the FATF’s 40 Recommendations on Money Laundering for Dealers in Precious Metals and Stones.

DUE DILIGENCE RQUIREMENTS

But that is not all. The upgraded also defines specific due diligence that a company or individual handling diamonds must carry out in order to be considered compliant. All users will be required to register on a dedicated website, and once a year successfully complete an online self-assessment, to gauge their compliance with the WDC SoW Guidelines.

The upgraded System of Warranties “reflects our vision for a diamond industry that is not only free of conflict, but through its actions also promotes safe and secure working environments, equal opportunity and proper governance,” stated WDC President Edward Asscher.

The upgraded the WDC SoW Guidelines reference the UN Guiding Principles on Business and Human Rights, the ILO Declaration on Fundamental Principles and Rights at Work, the UN Convention Against Corruption, and national AML guidelines that comply with the FATF’s 40 Recommendations on Money Laundering for Dealers in Precious Metals and Stones.

The self-assessment questionnaire is individualized according to the size of the company or organization being tested, by the specific range of business activities in which it is involved, and whether it is already compliant with other recognized due diligence systems, like the Responsible Jewellery Council’s Code of Practices or De Beers’ Best Practice Principles Assurance Program.

To enable a smooth transition from the original to the upgraded SoW, there will be a transitional period, during which companies still can decide to accept the older warranties from their clients, of three years in the case of rough purchases and five years in the case of all other purchases.

 

SEARCH DIAMONDS
Search