The 38th World Diamond Congress ended on a positive note in Mumbai on Thursday, October 25, 2018 after intense discussions on a number of pressing issues, WFDB President Ernie Blom said, terming the three-day conclave as overall, very successful. The Congress, the bi-annual meet of the World Federation of Diamond Bourses (WFDB) and the International Diamond Manufacturers Association (IDMA) was hosted by the Bharat Diamond Bourse in Mumbai.

Blom, who was re-elected for his fourth term as President of the global body said that the Congress had decided to set up a group that would help WFDB further enhance its role as the most important representative body in the global diamond trade, and ensure it was able to deliver added benefits to its members. The group will be headed by Israel Diamond Exchange President Yoram Dvash.

Elaborating on the reasons for taking this step, Blom said, "We have an enormous amount of knowledge, experience and intellect among our presidents and that should be used to find ways for us to further boost our global role."

Important discussions centred around the new FTC Guidelines and lab grown diamonds, issues of bank finance, and the System of Warranties (SOW) developed by the World Diamond Council (WDC) which represents the industry in the Kimberley Process Certification Scheme.

The Congress has extended its complete support to the SOW, while reiterating that the KP still needed to retain its primary focus on preventing any conflict diamonds from entering the mainstream, a task it has successfully accomplished over the past years.

Industry representatives also had fruitful interaction with the banks, and will continue their efforts to change the perception of the diamond industry as being ‘high-risk’, the WFDB said. WFDB Committee member, and BDB President Anoop Mehta explained that, in their opinion, more than the illegalities of a minuscule number of diamantaires, it was the increased costs of due-diligence as a result of stringent government guidelines and KYC norms related to lending, coupled with the lower levels of profitability for the industry, that was driving the cut bank in finance. “There will be no sudden reversal of this trend in the short run,” he said, while adding that the situation could improve in the medium to long term.

WFDB also reiterated that at the international level it will continue to adhere to the ISO standards regarding nomenclature to help distinguish natural diamonds and lab-grown ones. The FTC guidelines apply to the US market, and there too the organisation will work closely with US trade bodies to ensure that the differentiation is made absolutely clear.

President Blom also said that he would be pushing a succession planning policy to ensure that younger members of the diamond trade are brought on board and become active in the running of the organization. "It is imperative that we all work to bring this about. There are many excellent younger members of the trade, both men and women, across the globe and we must help to groom them for positions of leadership."

He put forward a suggestion for an additional layer of administration saying this was needed to deal with an increased workload.

On the challenges the diamond industry faces, Blom said bourses must be forceful in dealing with people found to be breaking the rules. "Every president and bourse must have zero tolerance for this activity and this must be clearly communicated."

Blom also commented on Know Your Client programs which, he said, were extremely important to the industry and which can help diamond firms become even more transparent. In addition, responsible sourcing has become a standard element of operations and members should embrace it.

Pic caption (from left) WFDB Secretary-General Rony Unterman, WFDB President Ernie Blom, WFDB Exec Comm Member and Bharat Diamond Bourse (BDB) President Anoop Mehta, WFDB Vice-President Lin Qiang, and WFDB Treasurer-General and BDB Vice President Mehul Shah