Canadian Jeweller Charged with Smuggling

A Canadian jeweller was charged with smuggling over a quarter of a million dollars in U.S. currency along with over 3000 pieces of jewellery and vials of steroids out of the U.S.

Jirayr Cerrahyan was charged by U.S. Immigration and Customs Enforcement in May while trying to enter Canada from northern New York State.

Michael Bridgeman of U.S. Immigration and Customs Enforcement said a common money-laundering technique is to smuggle currency out of the U.S. and then bring it back into the country. Customs officials are investigating whether any other laws were broken.

Please visit JVC's website www.jewellersvigilance.com for more information on how you can assist law enforcement on anti-money laundering.

Diamond Code of Conduct Update

The Canadian Diamond Code of Conduct Committee (CDCC) held an open line discussion with industry on April 13, 2005. The main topic discussed was how to deal with the issue of small stones (under 0.18 ct) under the Code.

The CDCC has grappled with this issue since the early days of developing the Code. It was decided that in order to strengthen the Code the CDCC will require a unique Diamond Identification Number (DIN) to be laser engraved on the girdle of each Canadian diamond to be authenticated under the Code. The implementation date will be March 31, 2006. This will allow current inventories to be worked through.

The CDCC is in the process of updating the Code with this and other changes. Look for the updated version on the Code website www.canadiandiamondcodeofconduct.com. All Code Signatories will be notified when the update is complete. The CDCC will also invite Industry to participate in a portion of the upcoming meetings via conference call.

For more information on the Code visit www.canadiandiamondcodeofconduct.com.

JVC's Crime Prevention Program Update

John Lamont, JVC's Director of Crime Prevention, is in the process of updating our Security Manual for 2005.

A CD rom of the 2005 manual will be sent to all renewed JVC Crime Prevention members. Look for your renewal request in July. If you are not a member please contact us at 1-800-636-9536 or visit our crime prevention website at
www.jvc-crimedata.com.

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Health Canada - Final Publication of Children's Jewellery Regulations

Health Canada has announced new regulations that limit lead content in children's jewellery that is sold in Canada whether it is imported, manufactured or advertised in Canada.

The Children's Jewellery Regulations will restrict jewellery items containing more than 600mg/kg, total lead and 90mg/kg migratable lead. Children's jewellery is defined as "jewellery that is produced, sized, decorated, packaged, advertised or sold in a manner that appeal to a child under 15 years of age."

Fore more information visit Health Canada's website at www.hc-sc.gc.ca

New: The Council for Responsible Jewellery Practices

Jewelers of America convened a meeting in London in the fall of 2004 to explore what actions the jewellery industry worldwide should take to maintain consumer confidence. This initiative led to the founding of the Council for Responsible Jewellery Practices.

Still in the infant stages this Foundation is developing a draft statement of Principles and a draft Code of Practices with as many relevant organizations as possible. The Foundation is seeking consultation this summer (2005) from industry.

To participate in the industry consultation exercise, to sign up for their newsletter or for more information on membership please contact helen.l.jones@uk.pwc.com.

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RCMP Update - Diamond Profiling

In the August 2002 edition of Action Update we reprinted an article from the RCMP Pony Express that included information on an initiative to create a diamond profiler - a forensic test that can trace diamonds back to their source country. Then in the Spring 2004 edition we reported on Cutting-edge Forensics. The program's head, RCMP chemist David Ballantyne talked about the development of this unique crime prevention tool.

The work on this program continues today. The complexity of the program cannot be understated. The RCMP have now developed a knowledge base, created a scientific plan, acquired an analytical capacity and have conducted fundamental research into the methodology to be used.

The Canadian diamond industry is very supportive of this program, lending our support by loaning appropriate samples for research and sharing vital geological and scientific knowledge. Law enforcement, government and other experts in Canada and abroad have also lent their support to the project. No other law enforcement agency in the world has been granted this broad support. The cooperation underscores the importance of partnerships with the RCMP in this very important work for the future of our Canadian diamond industry and the diamond industry and law enforcement worldwide.

For more information on the Diamond Profiling project contact: David Ballantyne, Manager, Materials Profiling, RCMP - Forensic Laboratory Services, email david.ballantyne@rcmp-grc-gc.ca

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Proposed requirements for dealers in precious metals and stones (DPMS) under the Proceeds of Crime (Money Laundering) and terrorist Financing Act (PCMLTFA)

The Canadian government has developed an anti-money laundering and anti-terrorist financing regime consistent with international standards. Finance Canada is now going to require dealers in precious metals and stones (DPMS) to fulfill certain requirements as a reporting entity.

Client identification and record-keeping
Transactions reporting
Compliance program

Current consultation with industry is underway to help ensure that the requirements are effective but minimize the compliance burden.

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JVC Welcomes Jewelers Mutual to Canada

JVC is proud to announce a new partnership in crime prevention with Jewelers Mutual Insurance Company (JM).

JM is committeed to help jewellers in Canada reduce their risk of loss and thereby protect people and protect assets. In addition to JM providing the majority of material in our JVC Security Library, access to online crime prevention training and other crime prevention material, this new partnership will ensure that all their Canadian commercial policy holders will be enrolled in the JVC Crime Prevention Program. For more information contact JVC or visit www.jewelersmutual.com.

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Is your store being cased?

by Jewelers Mutual Insurance Company

What should you do if you think your jewellery business is being cased? Most thieves case a business before attacking. You can reduce the likelihood of a robbery or a break & entry theft by taking a few precautions.

Alert other employees of a suspicious situation by using a pre-established code word or phrase.

Make more employees visible on the sales floor.

One employee should leave the store to observe from a safe distance. This employee should have a cell phone and be prepared to call police.

As with all customers, greet these individuals and engage them in conversation by offering your name and asking theirs. If they are thieves, your attention will be unwanted and they will leave. After all, they want to be anonymous.

Make sure cabinets, safes, and showcases not in use are locked.

Store customers’ merchandise in a safe place that it out of sight if a robbery should occur.

Call the police or mall security and ask them to visit your business as soon as possible. Explain that you think your store or business is being cased for a potential robbery or burglary. Police visibility can deter a crime.

Write down the description of any suspicious persons and, if possible, the colour, make, model, and license plate number of the vehicle they are driving.

Have security cameras visible so thieves know they are being monitored.

Notify Jewellers Vigilance Canada (JVC) at (800) 636-9536 or info@jewellersvigilance.ca. The information you provide may help JVC and law enforcement authorities track suspected jewellery thieves and alert others in the area.

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The Canadian Guidelines With Respect to the Sale and Marketing of Diamonds, Coloured Gemstones and Pearls

Revised Edition 2003

JVC would like to thank the very hard working committee who generously gave of their time and expertise to revise these guidelines. We would also like to thank the many industry members who gave us such valuable input on the draft copy.