A diamond-set account is a special bank account for diamantaires meant to be used exclusively for industry transactions. A diamond-set account allows its owner to deposit foreign currency revenues from diamond sales as well as withdraw foreign currency for diamond trade. Diamond-set accounts do not accept Israeli shekel deposits.
Diamond-set accounts are unique to the Israeli banking system. Since Israel’s inception and until the 1960s, the State imposed rigid limitations on foreign currency transactions.
The diamond industry was one of the major casualties of this policy, as its dealings are performed primarily in foreign currency. The policy changed in the late 1960s and as part of the reform, the banks allowed the diamond industry to keep dollar-based accounts, as long as they were used exclusively for industry-related trade. Diamond-set accounts have been in use ever since.
