Kamlesh Pattni, a key figure in the global illicit gold trade, has been sanctioned by both the US and UK for his role in extensive corruption and bribery to protect his unlawful operations. The US Treasury Department has imposed stringent measures against Pattni and his network, ordering the seizure of all assets linked to these individuals and companies. The sanctions prevent them from accessing US financial systems, effectively blocking all property and interests held in the United States or under the control of US persons.
The UK’s National Crime Agency (NCA) has similarly frozen Pattni’s assets, applying sanctions under the Global Anti-Corruption Sanctions Regulations 2021. The UK government stated that Pattni’s actions, including bribery and his support for illicit gold trading enterprises, have fueled serious corruption in Zimbabwe.
Pattni’s network’s operations bear striking similarities to his role in Kenya’s infamous Goldenberg scandal (1991–1993), where he was accused of collaborating with high-ranking political figures, including the late President Daniel Arap Moi, to embezzle billions from Kenyan taxpayers. Although Pattni was acquitted in that case, it remains one of Kenya’s most notorious corruption scandals.
Margaret Hodge, the UK’s newly appointed Anti-Corruption Champion, condemned Pattni’s actions, emphasizing the widespread nature of the corruption and its threat to ethical business practices and the rule of law.
The US Treasury’s sanctions also reveal a sprawling network involved in laundering proceeds from Zimbabwe’s illicit gold trade. This operation spanned 21 companies across Zimbabwe, Kenya, the UAE, Kyrgyzstan, Singapore, and the UK, including entities like Rubini Investments (British Virgin Islands) and Golden Luxury Jewellery Trading LLC (UAE).
The US Treasury noted that illicit gold trade undermines legitimate industries, fuels corruption, and contributes to human rights abuses, including child labor. This crackdown is part of broader global efforts to combat corruption tied to resource exploitation.
The sanctions also highlight the increasing use of gold to launder money and evade sanctions. Analysts warn that the case emphasizes the need for greater transparency and oversight in Zimbabwe’s resource management, which is already grappling with severe economic and political challenges.