Money Laundering Through Trade in Diamonds: The Danny Koort and Jeanette Rosen Case Study

Abstract

This paper uses the Danny Koort and Jeanette Rosen case to illustrate the vulnerability of the diamond trading business to money laundering.

Precious metals and stones, particularly gold and diamond, offer a high intrinsic value in a compact form. They can be “cashed” easily in most areas of the world. Hence, they are vulnerable to be used in money laundering for the ease in which they can be hidden and transported.

This case study aims to help build awareness with the regulatory, enforcement and customs authorities as well as reporting entities about risks and vulnerabilities of the diamonds trade, and how to mitigate them.

Keywords: Money Laundering, Diamond Dealers, Precious metals and stones