The Kimberley Process Certification Scheme started when southern African diamond-producing countries met in Kimberley, South Africa, in May 2000, to discuss ways to stop the trade in ‘conflict diamonds’ and ensure that diamond purchases were not funding violence.

The Kimberley Process (KP) is open to all countries that are willing and able to implement its requirements. As of November 2008, the KP has 49 members, representing 75 countries, with the European Community and its Member States counting as an individual participant. KP members account for approximately 99.8% of the global production of rough diamonds.

The rough diamond-trading entity of Chinese Taipei has also recently met the minimum requirements of the KPCS. Lately, Venezuela has voluntarily suspended exports and imports of rough diamonds until further notice and Cote d' Ivoire is currently under UN sanctions and is not trading in rough diamonds.

In July 2000, the global diamond industry made clear to the international community its zero tolerance policy towards conflict diamonds. Dedicated to eradicating the trade in conflict diamonds, it worked closely with the United Nations, governments and non-governmental organizations (NGOs) to create the Kimberley Process Certification Scheme. This system was formally adopted in 2003 and guards against conflict diamonds entering the legitimate diamond supply chain. The diamond industry also adopted a voluntary System of Warranties to assure consumers that their diamonds are from sources free of conflict.

Under the Kimberley Process, diamond shipments can only be exported and imported within co-participant countries in the Kimberley Process. No uncertified shipments of rough diamonds will be permitted to enter or leave a participant's country. This ring-fences conflict diamonds and as such ensures they are unable to enter the legitimate diamond supply chain and thus, cannot be used for illegitimate purposes.

The Kimberley Process (KP) is open to all countries that are willing and able to implement its requirements. As of November 2008, the KP has 49 members, representing 75 countries, with the European Community and its Member States counting as an individual participant. KP members account for approximately 99.8% of the global production of rough diamonds.

The rough diamond-trading entity of Chinese Taipei has also recently met the minimum requirements of the KPCS. Lately, Venezuela has voluntarily suspended exports and imports of rough diamonds until further notice and Cote d' Ivoire is currently under UN sanctions and is not trading in rough diamonds.

• Each shipment of rough diamonds crossing an international border must be:
  • Transported in a tamper-resistant container
  • Accompanied by a government-validated Kimberley Process Certificate
• Each certificate must be resistant to forgery, uniquely numbered and describe the shipment's contents
• The shipment can only be exported to another Kimberley Process participant country
• It is illegal for uncertified shipments of rough diamonds to either be imported or exported by a Kimberley Process participant country
• Failure to comply with these procedures can lead to confiscation or rejection of parcels and/or criminal sanctions
• If any concerns arise regarding a country's adherence to the Kimberley Process, they are investigated and dealt with at an intergovernmental level

Kimberley Process participants undergo periodic reviews, along with peer monitoring to ensure compliance. Furthermore, all rough diamond sales are independently audited, and are also subject to separate governmental regulations. Any country that is found not to be in compliance can be sanctioned by the Kimberley Process.

In addition to the Kimberley Process, the System of Warranties was developed by the World Diamond Council (WDC) to extend the Kimberley Process conflict free assurance to polished diamonds and provide a means by which consumers can be assured their diamonds are from conflict free sources The System of Warranties provides assurance that diamonds are from conflict free sources all the way to the diamond jewellery retailer.

Under this system, which has been endorsed by all Kimberley Process participants, all buyers and sellers of both rough and polished diamonds must make the following affirmative statement on all invoices:

"The diamonds herein invoiced have been purchased from legitimate sources not involved in funding conflict and in compliance with United Nations Resolutions. The undersigned hereby guarantees that these diamonds are conflict free, based on personal knowledge and/or written guarantees provided by the supplier of these diamonds."

All members of the trade who provide such assurances should keep records of both their customer warranties and their System of Warranties statements from their suppliers. This flow of warranties in and out must be audited and reconciled annually by the company's own auditors. If asked for by a duly authorized government agency, these records must be able to prove that the supplier is in compliance with the Kimberley Process.

Failure to abide by the aforementioned principles exposes the member to expulsion from industry organizations. Under the terms of the Kimberley Process, it will be considered a violation to issue a warranty declaration on a sales invoice unless it can be supported by warranty invoices received for purchases. Failure to adhere to these principles will prompt investigation and could result in expulsion from the various diamond industry institutions.

The Kimberley Process is constantly being reviewed for improvements. This review is currently being undertaken by the international governments who are members of the Process, with input from NGOs, diamond industry experts and other interested parties. The system is continuously reviewed and improvements are adopted. In addition to the Kimberley Process and System of Warranties, the diamond industry - along with governments and non-governmental organizations (NGOs) - is taking additional actions to eradicate conflict diamonds. For example, the Diamond Development Initiative aims to find sustainable methods of ensuring that diamonds are mined and distributed for the benefit of local communities and local governments.