Two Antwerp diamond offices were raided on Wednesday by the Belgian authorities on suspicion of tax-evasion. Rough diamond trader Omega, one of the firms raided, had over $100 million worth of goods confiscated.

The most recent raids follow a relative period of quiet in Belgium’s diamond capital during which the police and taxation authorities did not raid any companies.

Local diamond dealers complained in the past that authorities had accused them of tax evasion on diamond deals that had taken place some years ago and consequently confiscated goods from recent deals. “With such tight margins and liquidity issues, many firms prefer to settle and get the goods back quickly, and not fight in courts and jeopardize the existence of the business,” one trader told IDEX Online.

“This drives business out of Antwerp,” another dealer said. Many companies have set up companies outside of Europe, including in Israel, to avoid issues concerning ownership. These companies then send the goods to Antwerp on memo to prevent local ownership in case of a raid.

Others are shifting their business out of Antwerp altogether. The Israel Diamond Exchange (IDE) is actively wooing Antwerp-based traders that are looking to do so, offering them a host of incentives.

The two firms were not available to comment.