This report seeks to examine the effectiveness of the Kimberley Process Certification Scheme (KPCS) and the System of Warranties for rough diamonds in the European Union (EU), one year after the effective starting date of the KPCS. It examines how the European regulations for the KPCS and System of Warranties the are being implemented. To what extent are governments and industry organizations living up to their promise to stop conflict diamonds from entering the European market? What flaws remain and what measures could be taken to improve the system in the EU?