Indian Diamantaires Urged to Follow KYC Norms

12/05/2016 13:47

Following a series of defaults that rocked the industry since January 2016, involving amount to the tune of over $60mn by parties in Mumbai and Surat, the Surat Diamond Association (SDA) has urged diamond traders and manufacturers in Surat to implement 'know your customer (KYC)' norms before dealing in precious diamonds with anyone, reported the Times of India. Diamantaires are now urged to follow the KYC norms to minimize the risk of defaults. Recently, a diamond trader from Surat, who operated for the last one-and-a-half-decade, disappeared from the market without paying pending dues of $1.20 million to 35 traders. The traders approached the SDA to discuss the issue and seek its help in locating the defaulter. The police asked the traders and manufacturers to identify the parties and maintain their personal and financial records. Gems and Jewellery Export Promotion Council (GJEPC) regional chairman Dinesh Navadiya, said "We have urged diamond traders and manufacturers to implement KYC norms when they strike a deal in precious diamonds with anyone.”