The Kimberley Process

3. Where the Focus Should Be: Real Reforms, Not Misplaced Criticism

What Needs to Happen: Strengthening Diamond Governance Without Dismissing KP

The Budhai and Kumar report highlights important areas of concern, but its solution—expanding KP to cover pricing, financial crime, and stockpiling—misunderstands the role of an international certification scheme. Instead, here’s what should actually happen: Strengthened Financial Oversight

The OECD, FATF (Financial Action Task Force), and tax authorities should enforce stricter rules on misinvoicing and financial crimes.

AML regulations should be applied rigorously at major trading hubs to prevent illicit flows.

In terms of customs and trade enforcement, governments must apply more rigorous valuation controls at export points to prevent systematic undervaluation.

Tax incentives and free zones must be better regulated to ensure they do not encourage unethical trade practices.

When it comes to industry-led traceability and ethical sourcing, the diamond industry should implement blockchain tracking and independent traceability systems to complement KP.

Voluntary initiatives like the Natural Diamond Council (NDC) and Responsible Jewellery Council (RJC) should lead in ethical supply chain verification.