Federation says dealers should be responsible for what they sell.
The World Federation of Diamond Bourses (WFDB) has said it will take severe action against any member who is found to knowingly misrepresent or fail to disclose synthetic diamonds.
The WFDB, which held its executive meeting in London last week, issued a statement today relating to undisclosed synthetic diamonds entering the market. It said it acknowledges that synthetic diamonds have a place in the market, but they must not be confused with or marketed as natural diamonds.
The statement read: "It has been the policy of the WFDB that synthetic gems must be declared and as such the Federation will have a zero-tolerance approach towards individuals or companies who do not abide by this.
"As the industry and the WFDB work hard to protect the reputation of diamonds, the Federation has put out an official warning that it will not stand for the passing off of synthetics as natural. During the organisation’s executive meeting in London which took place last week, a unanimous decision was made to take severe action against any member who is found to knowingly misrepresent or fail to disclose synthetic diamonds."
The WFDB added that members of diamond industry need to "understand that they are personally responsible" for the stones and products they sell, urging them to get to know their supplier to ensure the legitimacy of their product and whether they are disclosing synthetics.
"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," the statement continued.