Conflict diamonds, also known as "Blood diamonds" are diamonds illegally traded to fund conflict in war-torn areas, particularly in central and western Africa. The United Nations (UN) defines conflict diamonds as "...diamonds that originate from areas controlled by forces or factions opposed to legitimate and internationally recognized governments, and are used to fund military action in opposition to those governments, or in contravention of the decisions of the Security Council." These diamonds are sometimes referred to as "blood diamonds." Conflict diamonds captured the world's attention during the extremely brutal conflict in Sierra Leone in the late 1990s. During this time, it is estimated that conflict diamonds represented approximately 4% of the world's diamond production. Illicit rough diamonds have also been used by rebels to fund conflicts in Angola, Liberia, Ivory Coast, the Democratic Republic of Congo and the Republic of Congo (also known as Congo Brazzaville). Today, the flow of conflict diamonds has been reduced to considerably less than 1%.

There are three diamond producing countries that account for this small percentage. Firstly, the Republic of Congo has been suspended from participation in the Kimberley Process owing to areas of non-compliance. Secondly, Liberia and the Ivory Coast are under United Nations Security Council Resolutions to prohibit the extraction and trading of diamonds. Despite both the Republic of Congo and Liberia benefiting from internationally recognized peace agreements, diamonds from these countries may be referred to as "conflict diamonds".

Today 71 governments have enshrined into their national law the Kimberley Process Certification System, and now more than 99% of the world's diamonds are from conflict free sources. However, even one conflict diamond is one too many. The diamond industry continues to work with governments, NGOs and the UN to strengthen the Kimberley Process and the System of Warranties.

While diamonds have been used to fund conflict, the problem is not the diamonds themselves but the rebels who exploit diamonds (along with other natural resources) to achieve their illicit goals. The vast majority of diamonds come from countries at peace. These countries have been able to invest the revenue from diamonds into the development of infrastructure, schools and hospitals for the good of the communities in which diamonds are found. These countries include Australia, Botswana, Canada, Namibia, Russia, South Africa and Tanzania.

In this days, more than 99% of the world's diamonds are from conflict free sources and are officially traded under the UN mandated Kimberley Process.