This is certainly a positive step. But it's not enough.
Offering Monica the chance to go through your reinstatement process is an insult. Either you're going to reinstate her to her previous positions or you're going put her through the wringer and reject her.
If you are planning to reinstate her, just do it! The new processes don't apply to her anyoneanyway since she was not removed with them. If removing her diamonds was a mistake, then fix the mistake.
Why force her to go through this unnecessary review unless your end goal is to say "see, we were right to de-mod you all along!"??