IDI Readies for Anti-Money Laundering Law

Ramat Gan: Israel Diamond Exchange members will soon be subject to government supervision of cash payment policies as part of new anti-money laundering regulations, state Diamond Controller office Shmuel Mordechai told bourse members on Tuesday, according to the IDE website.

The first part of the new policy goes into effect on September 15. By mid-October, IDE members will be subject to supervision by the controller’s office, “especially in the field of client identification”, he said.

“At first we will help people to understand and adapt their business, but if we detect any irregularities, we will treat them severely,” Mordechai said. Representatives of Israel’s Money Laundering and Terror Financing Prohibition Authority will also conduct periodic checks of IDE members, according to the website.

Under the regulation, every bourse member company must appoint a person for implementing the law with additional responsibility for explaining to company employees new cash payment policies. The purchase and sale of synthetic diamonds are also subject to the new AML regulations.