DIAMOND 56

Vol.56 DISTRICT January 2015 MONTHLY Visitors of Note to the Diamond District

“I want to thank all the members of the 47th Street BID for your contri- butions to the vitality and economy of our great City. I’m looking for- ward to how we can work collabora- tively to educate New Yorkers about this important industry.” – Speaker of the City Council Melissa Mark-Viverito L to R: BID Executive Committee Member Ronnie VanderLinden, BID President Harvey Nagin, BID Execu- tive Committee Members Ken Kahn & Richard Friedman, Speaker of The Council Melissa-Mark Viverito, BID Executive Director Michael Grumet, BID Board Member Lucy Orozco, BID Vice Chairman Mi- chael Toback, BID Chairman Steven Grauer, BID Executive Committee Member Jeffrey Mordekai.

“On October 6, 2014, I was very honored to be recognized by the 47th Street Business Improvement District with a Diamond Award, and proud to stand alongside my colleagues in government U.S. Senator Chuck Schumer and NY City Council Member Dan Garodnick, as well as the Canadian Consul General John Prato. It’s truly a privilege to represent the Diamond District in the New York State Senate, as it plays an unparalleled role in the state with more than 2,600 independent businesses related to fine jewelry. With 90 percent of the diamonds entering the country running through the city and an average of $400 million worth of revenue per day, the Diamond District is one of the most important hubs for small businesses and economic development in New York. I look forward to my continued partnership with the 47th Street BID, fellow Dia- mond Award winners and colleagues in the legislature to ensure our state remains welcoming and supportive of this important net- work of small businesses.” – New York State Senator Brad Holyman

Big Apple Greeters are educated about pearls “So much of the world’s diamond by BID Board Member Sammy Abramov. activity is happening right here on 47th Street, where these gems are mapped, cut, polished and sold to standards only achieved here in New York. There are diamonds sold world-wide, but there is noth- ing like a diamond cut in New York City.” – Member Daniel Garodnick

BID Executive Director Michael Grumet (center left) giving a tour to the leadership team of New York City’s agency devoted to marketing, NYC & Co. ­— so they can get world– wide press for the Diamond District. 2 JANUARY 2015 DIAMOND DISTRICT MONTHLY Legislative Update

Starting November 7, 2014, the speed limit on all New York City DIAMOND DISTRICT MONTHLY streets will be 25 MPH unless otherwise posted. This new speed 580 5th Avenue, Suite 323 limit will be enforced by the NYPD and with speed enforcement New York, NY 10036 cameras. By getting New York drivers to slow down, we will prevent crashes, protect New Yorkers from injury and save lives. Lowering Michael Grumet, Publisher the speed limit to 25 MPH is one aspect of the Mayor’s compre- [email protected] hensive Vision Zero Action Plan to eliminate traffic deaths and O.O. Barrett, Editor serious injuries. Natalia Cheviakova, Administrative Director The new 25 MPH speed limit will affect all NYC streets, except [email protected] those where a different speed limit is posted. The speed limits on our highways will remain the same. Some big streets, which Bernard Rapaport, Advertising Sales have been designed to accommodate faster speeds will remain [email protected] at 30 MPH. Other streets, particularly streets near schools, may P: 212-302-5690 F:212-302-7835 have a lower speed limits posted. After November 7th, 2014, all streets that do not have a posted speed limit have a speed limit Michael Mitchell, Art Director of 25 MPH. [email protected] The Diamond District Monthly is published monthly by the 47th Street Business Improvement District.

DIAMOND DISTRICT MONTHLY JANUARY 2015 3 Executive Committee Harvey Nagin – Nagin Jewelry President Steven Grauer – Gold Art 18 KT LLC Chairman Michael Toback – Myron Toback Inc. Vice Chairman Dennis Marlow – Solitaire Creations Secretary Robert Hadi – ABS Partners Real Estate, LLC Treasurer Richard Winick – Manny Winick & Son Ken Kahn – KenArt Realties Richard Friedman – I. Friedman & Sons Ronnie VanderLinden – Diamex Inc. Jeffrey Mordekai – Petra Jewelers

Board Members S. David Belsky – S.D.Belsky Associates Chair Audit Committee Jay Holzer – Dyckmans Chris Ipek – Altin Realty Raizy Haas – Extell Development Corp. Lucy Orozco – Valley National Bank Matt Selig – Leo Ingwer John Kocak – Unique Settings Yale Zoland – Zoland’s Danielle Azeroual – Premier Realty Adnan Aydin - Futurama Jewelry Exchange Jack Elo – The Elo Group Moris Yero Shalmi – ABC Marc Beznicki – Kingmark Jewelers Alon Mor – Mor Diamonds Jules Fleischer – Jewelry by Alexander Sammy Abramov – AA Pearl Michael Oistacher – Manhattan Gold & Silver Isaac Chetrit – Yadidi Group Sunny Yung – Central Management Corp. Memhet Gulay – City Property Development Adam Abramson – Abramson Brothers Bill de Blasio – Mayor – New York City Comptroller Gale Brewer – Manhattan Borough President Daniel Garodnick – Council Member John Glaister – Resident Reuven Kaufman – Diamond Dealers Club

STAFF Michael Grumet – Executive Director Natalia Cheviakova – Administrator Director

4 JANUARY 2015 DIAMOND DISTRICT MONTHLY More Secure Credit Cards

Many Americans suffer from credit used with a signature to verify the user’s card fraud and both merchants and banks identity. are getting hacked. To remedy this problem The new technology will be available next the credit card industry is in the process of year. Bank of America and Wells Fargo are rolling out a new security system for credit already issuing debit cards with this tech- card users. nology. Retailers, banks and credit card companies will use a chip and pin card instead of a card How to Use a Pin System? with a magnetic strip. This new system is To use a chip and pin system simply insert currently used in Europe. the card into a credit card machine and The chip is better than the magnetic strip wait for a request for your pin number and as a secure device. It is not easily duplicated enter your pin and the transaction will be as are the current magnetic strips. European approved. card providers, Europay, MasterCard and Why Chips and Pins? Visa already use the chip system. Informa- Chips cannot be copied and using a Pin tion about the card, such as the card number number means the user must be near the and expiration date, is stored in the chip. terminal. This reduces the chance of fraud. According to Bill Hardekopf, CEO of Low Cards.Com, “the chip is harder to duplicate When Will It Happen? than the magnetic strip.” Also, a pin may be By 2015 the system will be readily available.

DIAMOND DISTRICT MONTHLY JANUARY 2015 5 Learn Diamond Grading from the Creators of the 4Cs.

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6 JANUARY 2015 DIAMOND DISTRICT MONTHLY Fine Jewelry Market Hong Kong

Country Overview Hong Kong exercises no tariffs on imported goods, thus making it an has had the slowest growth of all fine jewelry categories, but base exciting market for exporters. Their GDP per capita is $52,700 (2013 metal with fine metal clad jewelry export value has grown at a rate estimate) with a GDP(PPP) of $381.3 billion (2013 estimate). over 400% from 2012 to 2013. Although the value of these exports is U.S. exports of jewelry to Hong Kong have seen a steady growth in not significant in comparison to gold based jewelry, exporters should all areas, with gold based jewelry leading in market share with over keep an eye on the growth of base metal jewelry clad with precious 97% of U.S. jewelry export value to Hong Kong. Silver based jewelry metal or lower cost jewelry in the future.

2012 to 2013 (% Change in value of U.S. exports, HS Code 7113 articles of jewelry & parts, of precious metal or clad) TOTAL 15 711319—JEWELRY AND PARTS THEREOF; OF OTH PRECIOUS METAL* 15 711311—JEWELRY AND PARTS THEREOF; OF SILVER* 7 711320—JEWELRY AND PARTS; BASE METAL CLAD W PREC METAL 402

Historical Exchange Rate of Hong Kong Dollar/U.S. Dollar Year Rate 2010 0.128721 2011 0.128463 2012 0.128915 2013 0.128921 2014 0.128938

0.1290

0.1288

0.1286 HONG KONG DOLLAR/US DOLLAR Exchange Rate

0.1284

0.1282 2010 2011 2012 2013 2014

*HTS 711319 (Jewelry and parts thereof; of precious metal excluding silver) made up 97.94% of export value in YTD 2014; 711311-1.59% 800,000,000

$727,654,188 DIAMOND DISTRICT MONTHLY JANUARY 2015 7 600,000,000 YTD EXPORT VALUE OF HS 7113 $559,792,902 YTD(MAR) 2012 $478,335,050 400,000,000 YTD(MAR) 2013 YTD(MAR) 2014 200,000,000 Value in thousands of US Dollars

0 0.1290

0.1288

0.1286 HONG KONG DOLLAR/US DOLLAR Exchange Rate

0.1284 Fine Jewelry0.1282 Market 2010 2011 Hong2012 Kong2013 2014

800,000,000

$727,654,188 600,000,000 YTD EXPORT VALUE OF HS 7113 $559,792,902 YTD(MAR) 2012 $478,335,050 400,000,000 YTD(MAR) 2013 YTD(MAR) 2014 200,000,000 Value in thousands of US Dollars

0 Item YTD(MAR) 2012 YTD(MAR) 2013 YTD(MAR) 2014 TOTAL 478,335,050 559,792,902 727,654,188 711319—JEWELRY AND PARTS THEREOF; OF OTH PRECIOUS METAL* 468,375,587 548,884,282 712,651,187 711311—JEWELRY AND PARTS THEREOF; OF SILVER* 9,536,934 10,184,647 11,589,578 711320—JEWELRY AND PARTS; BASE METAL CLAD W PREC METAL 422,529 723,973 3,413,423 Trade Shows in HONG KONG Name Date Link Description HKTDC Hong Kong 4-8 March 2015 http://www.hktdc.com/fair/hkjew- Known for exhibiting finished jewelry with the finest International ellery-en/HKTDC-Hong-Kong-Inter- quality in a world-class environment, the HKTDC Jewellery Show national-Jewellery-Show.html Hong Kong International Jewellery Show and its complementary event for jewelry raw materials welcomed more than 3,850 exhibitors from 53 coun- tries and regions in 2014. Now more than 74,000 buyers from 145 countries and regions came to source from these exhibitors. September Hong 17-21 September http://exhibitions.jewellerynetasia. The September Hong Kong Jewellery & Gem Fair, or- Kong Jewellery 2014 com/9JG/ ganized by UBM Asia, is the most important jewelry and Gem Fair marketplace that every serious jeweler and connois- seur cannot afford to miss. Since its launch in 1983, this glittering jewelry event attracts over 52,000 buyers from around the world each year to source the diverse collections of over 3,600 exhibitors from 48 countries and regions. Displays include a wide variety of fine jewelry, pearls, diamonds, gemstones, equipment and services. June Hong Kong 25-28 June 2015 http://exhibitions.jewellerynetasia. The June Hong Kong Jewellery & Gem Fair (June Jewellery and com/6JG/ Fair) is celebrating its 28th anniversary in 2015. Re- Gem Fair puted as one of Asia’s top three fine jewelry events, the June Fair attracts thousands of visitors from around the world every year. It offers international jewelers unmatched opportunities to market their brands on a global stage. *HTS 711319 (Jewelry and parts thereof; of precious metal excluding silver) made up 97.71% of total export value in 2013; 711311-1.99% 8 JANUARY 2015 DIAMOND DISTRICT MONTHLY AML: Promoting a Culture of Compliance in Your Business

s many know firsthand, U.S. Treasury Depart- A decision should be made about continuing a Ament agents are actively examining businesses relationship with the customer, or about filing a in our industry, and other industries, to assess their SAR, based upon the findings. The company’s sales compliance with anti-money laundering laws. What unit should not be able to veto a decision to forego they have found is that compliance falls short, unless a transaction, end a commercial relationship, or it is fully integrated into the culture of the organi- file a report, on the grounds that those steps would zation. In other words, a government enforcement hurt revenue. action is more likely if a company has not assimilated AML compliance into its norms and values. Information Should be Shared throughout the Organization To create a strong sense of AML compliance as “the In conducting compliance reviews, FinCEN found way we do things around here” FinCEN – the Trea- in several instances that a company possessed rel- sury Department bureau that enforces AML laws – evant AML information, but that the information recommends the following six practical steps: had not made its way to the compliance staff. In some cases a mechanism was lacking to share in- Leadership should be engaged formation. In others, staff intentionally decided to An organization’s leadership is responsible for per- withhold the information from compliance officers, formance in all areas, including AML compliance. or the significance of the information was missed by Leaders, including business owners and senior an employee who had not been adequately trained. managers, should understand their company’s AML While communication failures are less likely in obligations, allocate adequate resources to meet smaller enterprises, relevant employees must be them, and affirmatively create a culture of compli- alert to possible “red flags” of money laundering, ance. This requires that leaders receive periodic and they should be trained to share that informa- training, and seek information about compliance tion with the AML compliance officer. activities. Their support should be visible through- out the organization. Leadership Should Provide Adequate Human and Technological Resources Compliance Should not be A required element of any AML program is the Compromised by Revenue Interests designation of a compliance officer, an employee A company’s interest in revenue should not com- who is well-versed in AML requirements and who promise its efforts to address AML risks. Steps to has sufficient authority to successfully administer address these risks include submitting accurate the program. It is also important that the company reports to FinCEN, such as Suspicious Activity devote adequate support staff to the effort, so that Reports, when that appears necessary. The compli- compliance is thorough and effective. The failure to ance function should operate independently from provide sufficient resources leads to other failures. other business tasks, so that appropriate actions are For example, trained staff should monitor transac- taken when AML risks are evident. For example, tions for “red flags” of money laundering. Insuf- if the activities of a customer present “red flags” ficient, or poorly informed staff for this purpose of money laundering, the activities should be in- may result in missed red flags. It might also create a vestigated, regardless of the impact on revenue. backlog of alerts, resulting in untimely reporting of

DIAMOND DISTRICT MONTHLY JANUARY 2015 9 suspicious activity to FinCen. If needed – because of forcement in their effort to safeguard the nation the volume or complexity of transactions – appropri- from terrorism and other crimes. These reports ate technological resources should be allocated to include 8300 forms regarding cash transactions the compliance function. that exceed $10,000, as well as Suspicious Activity Reports about possible money laundering. Informa- The Program Should be Effective tion submitted by businesses is used to confront and Tested by an Independent and serious threats, including terrorist organizations, Competent Party rogue nations, proliferators of weapons of mass The involvement of leadership allows the AML com- destruction, foreign corruption and cyber-related pliance officer to implement an effective program. threats. The reporting also assists in the transna- Components of an effective program should include tional fight against drug trafficking and massive ongoing risk assessment, risk-based customer due fraud schemes targeting the U.S. government, our diligence, detection and reporting of suspicious businesses and our people. The very existence of activity, and independent program testing. While AML reporting regulations has a deterrent effect. all components are important, FinCEN particu- The certainty of an 8300 filing, and the possibility larly stresses the independent testing requirement. of a SAR filing, force criminals to behave in ways Company leadership should ensure that the tester that expose them to scrutiny and capture. – whether internal or external – is independent, qualified and unbiased. The tester should not have Understanding and communicating the purpose any conflicting business interest that might influence of compliance is as important to the success of a the outcome. company’s AML program as is understanding the program’s technical requirements. Important AML Leadership and Staff Should information should be part of an ongoing training Understand how Government program. Please contact JVC at 212-997-2002, or Reports are Used visit our website at www.jvclegal.org, for additional The AML-related reports submitted by businesses information about AML requirements, program to the Treasury Department result in some of the implementation, reporting obligations, training most important information available to law en- and independent testing.

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DIAMOND DISTRICT MONTHLY JANUARY 2015 11 MJSA EXPO NY: PROFESSIONAL EXCELLENCE IN JEWELRY MAKING & DESIGN

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12 JANUARY 2015 DIAMOND DISTRICT MONTHLY Diamond District Robbery

here was a major robbery in the Diamond District. The NY the shop were found to be Fenner’s as he did not wear gloves. TPolice Department responded immediately with a tremendous In addition to the two robbers, a third person was used as a lookout. show of force. Within minutes of the alarm going out police re- Rondu (Reef) Frisby, the inside man in this robbery, contacted the sponded with over 200 officers, swat teams, bomb sniffing dogs and co-conspirator 25 times in the hours before the Nov. 11th robbery. ambulances. The building where the crime occurred was cordoned off and the tenants of the building were escorted out. A worker at a Diamond District business where the crime oc- curred, Watch & Standard Jewelry, was quickly arrested. His name is Rondu Frisby. He was in the Jewelry Store when the crime oc- curred. Frisby had been filmed on a security camera meeting with the two robbers earlier in the day on the street outside the shop, according to police sources. One policeman was quoted as saying, “It looks like he set it up.” Frisby is a friend of Danny Mikhaylov, who is the son of the jewelry business owner. Frisby was taken into custody at his relative’s place on West 149thStreet in Harlem, a police source said. During the arrest Frisby was seen throwing cocaine out of a window. During the search incident to the arrest police found a pound of cocaine. They also found watches which they have linked to those stolen Police at the scene of the crime from Watch Standard Jewelry, according to the police. Leon Fenner, one of the two robbers is 58 years old. He entered A street camera showed Frisby and two others walking to Watch the store posing as a delivery man. Once inside the store, he pistol Standard Jewelry on West 47thStreet. Frisby and Leon Fenner are whipped the owner Boris Mikhaylov and took $500,000 in jewelry seen talking on cell phones minutes before the robbery, according and $6,000 in cash, the police reported. In-store cameras showed to police sources. that Fenner wore a trench coat and a Kangol hat. Fingerprints inside Further police investigation has led to the arrest of the accomplices.

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DIAMOND DISTRICT MONTHLY JANUARY 2015 13 ה”ב Radio City Synagogue In Memoriam Chabad of the Diamond District Times for Prayer and Torah Study aren Gail Roth Hodge, age 57, (Monday-Thursday) K a long time member of the 12:40p.m Mincha 1:00 Diamond District community passed followed by Daf Yomi Shiur away on November 21, 2014. After 1:45p.m. Mincha receiving a Masters Degree from the followed by Chassidus and Musar Gemological Institute of America 4:15/4:45p.m Mincha/Maariv she worked for; H. Stern Jewelers, the followed byTanya Shiur American Gemological Laboratories, 30 W 47th Street, suite 305 Aaron Faber and Isi Fischzang. She Every Wednesday at 2:00p.m then had her own jewelry company “Lunch and Learn” Shiur on the Parsha for many years. She is survived by her husband Cliff, For more info: her children Jason (14) Kara (12), her 347-415-2271 or 612-968-1229 brothers Walter, Thomas and Karl or email [email protected] www.chabad47.com Roth and her sister Patricia Quell. A Division of Chabad Lubavitch of Midtown Manhattan

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