The World Federation of Diamond Bourses announced a zero-tolerance policy toward companies that do not disclose they are selling synthetic diamonds.
The declaration comes amid increased reports of synthetic melee mixed with natural.
“The Federation has put out an official warning that it will not stand for the passing off of synthetics as natural,” the group said. At a recent meeting in London, the WFDB agreed “to take severe action against any member who is found to knowingly misrepresent or fail to disclose synthetic diamonds.”
It added that these recent incidents show the importance of members “knowing their supplier,” and ensuring they are both KP-compliant and committed to disclosure.
“While the WFDB acknowledges that synthetic diamonds have a place in the market, they must not be confused with or marketed as natural diamonds,” the group wrote. The law is clear and the punishment for fraud will be pursued. The WFDB will work with all legal agencies across the globe to assist in the prosecution of those who participate in this type of fraud in the diamond industry.”