Wednesday, April 07, 2010

Regulation of Africa’s Illicit Diamond Trade

The IMF is initiating a new project in 16 sub-Saharan African countries that produce and deal diamonds to crack down on money laundering, smuggling, and terrorist financing.

Africa produces an estimated US$ 19 billion in gold per year and US$ 6 billion in diamonds. But an unknown amount is laundered or siphoned each year for criminal purposes.

The project has two stages – the first is an awareness-raising program that will take place in Tunis. The awareness campaign will feature regional workshops and representatives different government departments in each country.

The second stage is assistance for interested countries to develop their national security methods of handling money-laundering, terrorist financing, and other related issues. Experts believe that increased transparency of transactions could prevent a majority of the corruption and greatly contribute to greater macroeconomic stability in these regions.

-Michelle Leung

Source: Afrol News