The Israel Diamond Exchange (IDE) is in the process of inspecting all tenants following the police investigations conducted in the exchange earlier in the year.
Motti Besser, the managing director of IDE, has been appointed to head an internal team tasked with examining hundreds of offices located within the exchange to ensure that all tenants are eligible to operate in the IDE buildings, according to a report by Ma’ariv. Besser was not available for comment at press time.
The aim of the investigation is to provide the IDE management with a clear picture of the tenants operating on site.
In January, police raids uncovered illegal banking operations and money laundering from within the exchange amounting to hundreds of millions of dollars. Further a business operating as a bank offered its services to Chinese workers who wanted to send money back to their relatives in China, according to Ma’ariv.
Israel’s diamond trade was impacted by the investigations during the first quarter as exports dropped significantly. Negations are still underway between the IDE and the Israel Tax Authority regarding the tax structures governing diamond businesses.
The Ma’ariv report added that IDE’s management is considering dismantling the precious gemstone bourse, which operates within the IDE and where the illegal bank ran its activities.