AML & KYC Compliance in the Diamond Trade: What B2B Buyers Should Expect

Anti-money-laundering and counter-terrorist-financing rules can require a diamond dealer to identify parties, keep records, assess risk, and report certain transactions. In Israel, the applicable duties for precious-stone dealers are listed in the government's AML legislation collection, including the dedicated order on identification, reporting, and record keeping. Requirements elsewhere may differ.

Why the Requested Documents Vary

The information requested can depend on whether the customer is an individual or company, who controls or benefits from the transaction, the amount and payment method, the countries involved, and the dealer's risk assessment. Requests may include personal identification, company-registration details, beneficial-owner information, or information about the payment source when applicable.

Payment and Transaction Details

A dealer may need to match the payer to the customer or documented third party, understand the commercial purpose of the purchase, and retain transaction records. Cash restrictions and reporting thresholds are jurisdiction-specific, so buyers should confirm the accepted payment method before sending funds.

A Risk-Based Process

The current FATF Recommendations identify the risk-based approach as a cornerstone of the standards. That means checks are not necessarily identical for every customer or order, and additional questions can be appropriate when a transaction presents higher risk.

Our Compliance Standard

S.RONEN DIAMOND LTD applies the checks and record-keeping requirements relevant to the customer and transaction. We may request additional information before accepting payment or completing an order. Contact us if you want to understand the expected onboarding information for a specific purchase.