The United Nations has imposed sanctions on two diamond firms – the Central African Republic based Badica and its Belgian branch Kardiam, on the grounds that they have been involved in illegal trading of diamonds. The UN also announced an asset freeze on the two firms and a global travel ban on some of the leaders of a banned CAR militia and some individuals said to be associated with it at the same time.

The UN decision follows a May 2014 incident in which the Belgian authorities seized diamonds from the offices of Kardiam, which were thought to have originated in CAR and did not possess proper Kimberley Process certificates.

Subsequently, the US Treasury also announced its own sanctions and asset freeze on the two companies and their operations in the US. It has also forbidden US citizens from engaging in transactions with these companies or the individuals named under the UN decree.

It may be recalled that a few months ago, the KP, at its Intersessional held in Angola, had charted a road map for a partial lifting of the ban on diamond exports from parts of CAR that were under the control of the elected government.