US OFAC and the Jewelry Industry

From the JewelleryOutlook publication of 2018, U.S. Citizen Jeffery Bergman is seen at the GEMKISH show and conference in Iran. Mr. Bergman was a presenter at the conference to advise and assist Iranian gem dealers.

Mr. Bergman uses his standing as Vice President, Emeritus of the International Gem Society (IGS) as well as his standing with the Accredited Gemologist Association as Accredited Senior Gemologist to assist the gemstone export industry of Iran. This is clearly covered in:

OFFICE OF FOREIGN ASSETS CONTROL IRANIAN TRANSACTIONS REGULATIONS (31 C.F.R. PART 560)

United States persons, wherever located, are prohibited from providing services to persons in Iran or the Government of Iran or where the benefit of such services is otherwise received in Iran. Order, § 1; ITR, §§ 560.204, 560.410.

Mr. Bergman’s actions are well documented in an article by Jewellery Outlook publication of November 2018: Iran’s GEMKISH Showcases. In addition to the article’s photographs and coverage of Bergman’s apparent acts of “trading with the enemy” as defined by the OFAC, below is an additional picture of Bergman in Iran, presenting a lecture to the Iran business community at the GEMKISH convention.

An example of indirect violation should be noted for all U.S. dealers working with gemstones that could originate from Myanmar (Burma). This involves recent sanctions leveled against dealing with certain gemstone producing companies connected to a military coup in the nation of Myanmar (Burma). These sanctions prohibit all U.S. citizens and companies from dealing with gemstones from the companies. They further prohibit owning or dealing in gemstones in the United States with inventory obtained from outside the U. S. from third party dealers. The story of these sanctions was recently covered by the Jewelers of America in their article: Legislative Update: Sanctions Hit Burma

Summation

The regulations of the United States Department of the Treasury Office of Overseas Assets Control apply to all United States Citizens regardless of where they live. The penalties for violation of these regulations can be severe. These can even apply to a U.S. company that trades with businesses in countries who are not on the OFAC sanctions list but trade with those countries. We urge everyone to be cautious when dealing with gemstones from unknown sources. We make even stronger caution to those who offer direct financial and business assistance to countries on the OFAC Sanctioned Country List, such as Iran seen above, as the penalties include not only monetary fines but also time in a Federal Prison.

Here is the list of official sanctioned countries with links to the sanctions. Any U.S. citizen or company dealing with these countries or specific entities on the list are subject to OFAC regulations and the U.S. Trading With the Enemy Act penalties, and are subject to fines and prison.

Anyone seeking more information can access the United States Department of the Treasury Frequently Asked Questions here: OFAC FAQ.

I personally urge caution to anyone with business connections to those known to violate US OFAC regulations and provide assistance to those who support and perpetrate terrorism to the world.

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