Policies & IssuesFeb 28, 2023
Tighter Sanctions on Russian Diamonds Are Likely Coming, JVC Warns Policies & IssuesApr 21, 2023
Diamond Companies Sanctioned, Dealer Charged With Money Laundering
Officials allege a “complex network” of entities helped Nazem Said Ahmad deal in diamonds and artwork in the U.S. despite being sanctioned.
The U.S. Department of the Treasury’s Office of Foreign Assets Control announced sanctions against 52 individuals and companies earlier this week for helping alleged Hezbollah financier Nazem Said Ahmad deal in diamonds and artwork in the United States despite being under sanction. The sanctioned firms include a number of diamond companies, while Ahmad and eight associates also have been indicted for money laundering and evading U.S. sanctions.
Washington, D.C.—The U.S. Department of the Treasury’s Office of Foreign Assets Control has announced a new round of sanctions that impact the diamond industry, this time tied to a man the U.S. has deemed a “global terrorist” who’s been under sanction for nearly four years.
Announced Tuesday, the sanctions encompass 52 individuals and companies OFAC said helped Nazem Said Ahmad evade U.S. sanctions and launder money in order to fund Hezbollah and his “luxurious lifestyle.”
Lebanon-based Hezbollah, also spelled Hizballah, is an Iran-backed political party and militant group believed to be responsible for numerous terrorist attacks.
It has been designated by the U.S. as a Foreign Terrorist Organization since 1997, and a Specially Designated Global Terrorist since October 2001.
Ahmad, a diamond and art dealer with both Lebanese and Belgian citizenship, has been on OFAC’s Specially Designated Nationals list since December 2019 for allegedly laundering money and evading taxes.
The 52 entities designated in this latest round of sanctions—which OFAC described as a “complex network” of Ahmad’s family members, business associates and companies spread across eight countries—used shell companies and fraudulent schemes to disguise the sanctioned Ahmad’s role in financial transactions involving diamonds and works of art, which he frequently shares on his Instagram page.
OFAC said Ahmad’s network took advantage of the “permissive nature” of the global diamond, gemstone, and art markets to buy and move around luxury goods.
It also mentioned the Kimberley Process specifically, noting that Ahmad’s network allegedly coerced both “witting and unwitting” participants into creating fake KP certificates to manipulate diamond prices and taxes and make their businesses look legitimate.
The full list of sanctioned companies and individuals is available on the OFAC website and includes diamond companies based in South Africa, the Democratic Republic of Congo, Antwerp, and Dubai.
The sanctions bar people and companies in the U.S. from doing business with any of the named entities as well as any entities that are owned, directly or indirectly, 50 percent or more by one or more blocked persons.
In an alert sent to members Thursday afternoon, Jewelers Vigilance Committee CEO and General Counsel Tiffany Stevens and Deputy General Counsel Sara Yood recommended U.S. businesses with automated OFAC software run their customer and supplier lists through their software program to ensure they’re not doing business with any sanctioned entities.
For companies doing manual checks, Stevens and Yood said they should cross-check the OFAC list against their lists of suppliers and customers.
Businesses without compliant anti-money laundering (AML) programs can find more information about implementing one on the JVC website.
Related stories will be right here …
Announced Tuesday, the sanctions encompass 52 individuals and companies OFAC said helped Nazem Said Ahmad evade U.S. sanctions and launder money in order to fund Hezbollah and his “luxurious lifestyle.”
Lebanon-based Hezbollah, also spelled Hizballah, is an Iran-backed political party and militant group believed to be responsible for numerous terrorist attacks.
It has been designated by the U.S. as a Foreign Terrorist Organization since 1997, and a Specially Designated Global Terrorist since October 2001.
Ahmad, a diamond and art dealer with both Lebanese and Belgian citizenship, has been on OFAC’s Specially Designated Nationals list since December 2019 for allegedly laundering money and evading taxes.
The 52 entities designated in this latest round of sanctions—which OFAC described as a “complex network” of Ahmad’s family members, business associates and companies spread across eight countries—used shell companies and fraudulent schemes to disguise the sanctioned Ahmad’s role in financial transactions involving diamonds and works of art, which he frequently shares on his Instagram page.
OFAC said Ahmad’s network took advantage of the “permissive nature” of the global diamond, gemstone, and art markets to buy and move around luxury goods.
It also mentioned the Kimberley Process specifically, noting that Ahmad’s network allegedly coerced both “witting and unwitting” participants into creating fake KP certificates to manipulate diamond prices and taxes and make their businesses look legitimate.
The full list of sanctioned companies and individuals is available on the OFAC website and includes diamond companies based in South Africa, the Democratic Republic of Congo, Antwerp, and Dubai.
The sanctions bar people and companies in the U.S. from doing business with any of the named entities as well as any entities that are owned, directly or indirectly, 50 percent or more by one or more blocked persons.
In an alert sent to members Thursday afternoon, Jewelers Vigilance Committee CEO and General Counsel Tiffany Stevens and Deputy General Counsel Sara Yood recommended U.S. businesses with automated OFAC software run their customer and supplier lists through their software program to ensure they’re not doing business with any sanctioned entities.
For companies doing manual checks, Stevens and Yood said they should cross-check the OFAC list against their lists of suppliers and customers.
Businesses without compliant anti-money laundering (AML) programs can find more information about implementing one on the JVC website.
The Treasury Department announced the sanctions the same day federal prosecutors in Brooklyn, New York, unsealed an indictment charging Ahmad and eight others with orchestrating a “long-standing” scheme to evade U.S. sanctions, defraud the U.S. and foreign governments, and launder money.
According to the 50-plus-page indictment, filed under seal March 29, after the U.S. sanctioned Ahmad in December 2019, entities controlled by him or operating for his benefit made more than $400 million in financial transactions, importing $207 million worth of goods into the U.S. and exporting more than $234 million, all the while hiding the fact that Ahmad was involved.
Those imports and exports consisted primarily of diamonds and artwork, the indictment states.
For diamonds specifically, the indictment noted the defendants worked together to utilize grading services from a U.S.-based diamond grading company, identified in court documents only as “Diamond Grading Company-1” with a facility in New York.
The services were secured through multiple entities operating for Ahmad’s benefit and were valuable to all parties because the “cut, color and clarity grades assigned by the company, as well as the certification of the stone’s carat weight, affected the price at which a diamond could be sold.”
All told, the defendants and other conspirators submitted 482 diamonds to the lab after Ahmad was sanctioned in December 2019, totaling about 1,546 carats with a value of more than $91 million, the indictment states.
The U.S. Attorney’s Office for the Eastern District of New York is handling the prosecution, as goods were shipped in and out of New York’s John F. Kennedy Airport in Queens.
As of Tuesday, the office said one person had been arrested in connection with the scheme—The New York Times reported it was Ahmad’s accountant, who was arrested in Britain—while the others, including Ahmad, reside outside the U.S. and remain at large.
More on Policies & Issues
The Latest
CollectionsApr 25, 2025
Sylvie Looks to Water in New Sculptural Bridal Collection“Shell Auranova” is the next generation of the brand’s bridal line, featuring half-bezel engagement rings with bold and fluid designs.
FinancialsApr 25, 2025
Kering’s Jewelry Brands Persevere as Q1 Sales Sink 14%Boucheron and Pomellato performed well in an otherwise bleak quarter for Kering amid struggles at Gucci.
EditorsApr 25, 2025
Piece of the Week: Deborah Meyers Experience’s ‘The Birds’ EarringsDesigner Deborah Meyers created her birds from oxidized sterling silver, rose-cut diamond eyes, and Akoya Keshi pearl feathers.
Brought to you by
Emerging Jewelers Accelerator Program Announces Second Cohort of Aspiring Jewelry Entrepreneurs Six new retail businesses were selected for the 2025 program, which began in January.
SourcingApr 25, 2025
De Beers Sales, Production Fall in Q1 Amid UncertaintyThe company said it expects sightholders to remain “cautious” with their purchasing due to all the unknowns around the U.S. tariffs.
Weekly QuizApr 24, 2025
This Week’s QuizTest your jewelry news knowledge by answering these questions.
Supplier BulletinApr 24, 2025
Protect Your Customers and Your BusinessSponsored by the Gemological Institute of America
EditorsApr 24, 2025
Q&A: Wolf’s CEO Talks U.S. ExpansionSimon Wolf shares why the time was right to open a new office here, what he looks for in a retail partner, and why he loves U.S. consumers.
Brought to you by
Protect Your Customers and Your BusinessThe risk of laboratory-grown diamonds being falsely presented as natural diamonds presents a very significant danger to consumer trust.
IndependentsApr 24, 2025
Longtime Iowa Jeweler Herman Ginsberg Dies at 99 A third-generation jeweler, Ginsberg worked at his family’s store, Ginsberg Jewelers, from 1948 until his retirement in 2019.
FinancialsApr 24, 2025
Charles & Colvard Delisted From Nasdaq Due to NoncomplianceThe company failed to file its quarterly reports in a timely manner.
SourcingApr 24, 2025
Young Diamantaires Transition to NonprofitThe organization also announced its board of directors.
TrendsApr 24, 2025
Amanda’s Style File: So CharmingCharms may be tiny but with their small size comes endless layering possibilities, from bracelets to necklaces and earrings.
MajorsApr 23, 2025
Bulgari Doubles Size of Jewelry Factory in ItalyLocated in Valenza, the now 355,000-square-foot facility includes a new jewelry school that’s open to the public, Scuola Bulgari.
Events & AwardsApr 23, 2025
PDPaola Creative Director Wins FGI’s ‘Rising Star’ AwardPaola Sasplugas, co-founder of the Barcelona-based jewelry brand, received the Fine Jewelry Award.
AuctionsApr 23, 2025
Rare Custom Rolex Daytona Heads to AuctionA platinum Zenith-powered Daytona commissioned in the late ‘90s will headline Sotheby’s Important Watches sale in Geneva next month.
MajorsApr 23, 2025
David Yurman’s New Campaign Stars Carmelo Anthony, Jaylen BrownThe basketball stars wear men’s jewelry from the “Curb Chain” collection.
MajorsApr 22, 2025
Zales’ Rebrand Takes Playful Approach to Fine JewelryThe Signet Jewelers-owned retailer wants to encourage younger shoppers to wear fine jewelry every day, not just on special occasions.
AuctionsApr 22, 2025
Christie’s to Auction JAR Jewelry CollectionThe 21 pieces, all from a private collector, will be offered at its Magnificent Jewels auction next month.
ColumnistsApr 22, 2025
The PR Adviser: Building Buzz Through Word of MouthLilian Raji answers a question from a reader who is looking to grow her jewelry business but has a limited marketing budget.
GradingApr 22, 2025
Avi Levy Is GCAL By Sarine’s New Chief Growth OfficerGCAL by Sarine created the new role to sharpen the company’s focus on strategic partnerships and scalable expansion.
IndependentsApr 22, 2025
Brinker’s Jewelers Acquires Fellow IndependentThe Indiana jeweler has acquired Scottsdale Fine Jewelers in Scottsdale, Arizona.
Events & AwardsApr 21, 2025
An Exhibition Exploring the History of Cartier Is Now on Display“Cartier: Design, Craft, and Legacy” opened earlier this month at the Victoria and Albert Museum in London.
IndependentsApr 21, 2025
New York Jeweler to Close After 111 YearsVan Cott Jewelers in Vestal, New York, is hosting a going-out-of-business sale.
IndependentsApr 21, 2025
IJO Names New Director of Vendor Relations, Merchandise StrategyIndustry veteran Samantha Larson has held leadership roles at Borsheims, McTeigue & McClelland, Stuller, and Long’s Jewelers.
Events & AwardsApr 21, 2025
Jewelers of Louisiana, Mississippi Jewelers Association to Co-Host ConventionThe two organizations will hold the educational event together this fall in Mississippi.
Events & AwardsApr 18, 2025
Daymond John to Give Keynote at JCK Las VegasThe entrepreneur and “Shark Tank” star will share his top tips for success.
CollectionsApr 18, 2025
Piece of the Week: Dukachi’s ‘Easter Bread’ PendantThe Ukrainian brand’s new pendant is modeled after a traditional paska, a pastry often baked for Easter in Eastern European cultures.
