DIAMOND TIMES – The World Diamond Council (WDC) has officially launched its revised System of Warranties to coincide with the 40th anniversary of the United Nations 2021 International Day of Peace (SoW).
“The United Nations set the theme for the International Day of Peace 2021 as ‘recovering better for an equitable and sustainable world,’ and called on us all to honour the occasion with acts of compassion, generosity, and hope,” WDC President Edward Asscher said. As a result, we thought it was a good time to introduce the improved System of Warranties. It embodies our vision for a diamond sector that is not only conflict-free, but also fosters safe and secure working environments, equitable opportunity, and proper governance through its actions.”
Expanded Purpose
The upgraded SoW, like the original SoW, requires all sellers of rough diamonds, polished diamonds, and diamond jewellery to include a declaration on B2B invoices and other transaction documents, such as consignment memos, stating that the goods being sold comply with the Kimberley Process Certification Scheme (KPCS) and thus meet the Kimberley Process’ standard.
The revised warranty statement differs from the original in that it also includes a promise from the sellers to follow the updated WDC SoW Guidelines, which openly promote widely recognised human and labour rights, anti-corruption, and anti-money laundering principles (AML).
The UN Guiding Principles on Business and Human Rights, the ILO Declaration on Fundamental Principles and Rights at Work, the UN Convention Against Corruption, and national AML guidelines that comply with the FATF’s 40 Recommendations on Money Laundering for Dealers in Precious Metals and Stones are all cited in the WDC SoW Guidelines.
Annual Self-Evaluation
All users will be required to register on a dedicated website and successfully complete an online self-assessment once a year to gauge their compliance with the WDC SoW Guidelines, which is a significant new feature of the enhanced SoW.
The self-assessment questionnaire is one of several due diligence tools available on the official WDC System of Warranties website, which was released at:https://www.wdcsow.org.
The self-assessment questionnaire is tailored to the size of the company or organisation being assessed, as well as the specific range of business activities in which it engages and whether it is already compliant with other recognised due diligence systems, such as the Responsible Jewellery Council’s Code of Practices or De Beers’ Best Practice Principles Assurance Program.
Assisting with the Upgraded SoW’s Implementation
The WDC is coordinating a large international educational programme with diamond bourses and other national and international trade groups to help industry members in implementing the enhanced SoW. In the near future, information regarding the programme will be made available.
There will be a transitional time to provide for a smooth transition from the original to the enhanced SoW, during which companies can continue to take the previous warranties from their clients, which are three years for rough items and five years for all other sales.
