Prohibits the importation of polished diamonds (including jewelry containing diamonds) into the United States unless the exporting country: (1) is implementing a system of controls on the export and import of rough diamonds, except such system shall not be required for countries that do not import rough diamonds; and (2) requires that its own imports of diamonds originate from countries that have implemented a system of controls on the export and import of rough diamonds.
Prohibits the Overseas Private Investment Corporation and the Export-Import Bank of the United States from engaging in certain transactions in connection with a project involving the mining, polishing or other processing, or sale of diamonds in a country that fails to meet the requirements of this Act.
Provides a waiver for the requirements of this Act.
Urges the President to negotiate an international agreement to eliminate trade in diamonds used to support conflict in the country or regions in which such diamonds are mined.