Illicit Trade in Precious Metals and Gemstones

The illicit trade in precious metals and gemstones covers, among other commodities, diamonds. Although the establishment of the Kimberley Process has reduced the amount of conflict diamonds on the market, the illicit trade in diamonds continues to fund conflict and the activities of terrorist organizations. Rather than contributing to governments’ tax revenues, and economic growth and development on the African continent where the majority of diamonds are extracted, the trade in illicit diamonds is used by criminals for storing and transferring value. It is estimated that between 5% to 10% of the world’s diamonds are traded illegally. Based on 2015 industry totals, this places the size of this illicit trade in the range between US$ 5 billion and US$ 10 billion. Continued illicit trade in diamonds hurts legitimate actors’ reputation and business.

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