According to a Canadian Security Intelligence Service (CSIS) intelligence report, “Threat Posed by Eastern European Organized Crime to the Canadian Diamond Industry”, released to The Canadian Press, eastern European crime groups could jeopardize the North's emerging diamond industry by slipping foreign stones tainted through bloody conflicts onto the market.

The report, which notes that diamonds are small, durable, easy to smuggle, command a high value-to-weight ratio, are easily exchanged for cash and are practically untraceable once cut and polished, says that the business also presents an “inviting opportunity for criminal elements bent on theft and the laundering of illicit funds”.

“Potential exists for criminal elements to 'seed' smuggled 'conflict diamonds' into the Canadian production line and fraudulently market them as bona fide Canadian stones. This would contravene the Kimberley Process, taint the Canadian diamond industry's image and jeopardize the projected wealth of the industry,” continues the report.