US, UK sanction Gold Mafia linked dealer

The United States and Britain imposed sanctions on several individuals and businesses linked to global gold smuggling and money laundering networks, with Zimbabwean businessman Kamlesh Pattni at the center of the operation.

The sanctions, announced yesterday on International Anti-Corruption Day, target Pattni and 27 others implicated in illicit gold trafficking that has contributed to corruption and undermined the country's economic integrity. The move was led by the US Department of the Treasury's Office of Foreign Assets Control (OFAC), which accused Pattni of bribing officials, using trusted proxies to conceal ownership, and creating an elaborate web of businesses to mask his illegal activities.

Pattni, featured prominently in the Al Jazeera Gold Mafia documentary, is accused of smuggling gold from Zimbabwe to the United Arab Emirates (UAE). His network allegedly siphoned wealth from Zimbabwe's natural resources, benefiting corrupt government figures and criminal syndicates while denying the country's citizens the profits from its gold exports.

"Pattni and his network's illicit activities have robbed Zimbabwe's citizens of the benefits derived from natural resources," said the US Treasury Department. "This fraudulent scheme has enriched corrupt officials and criminal actors, further undermining the country's economy."

The Gold Mafia documentary, released in March 2023, highlighted the involvement of high-ranking government figures, including Uebert Angel, Zimbabwe's Ambassador-at-Large. In the documentary, Angel and his associates were secretly recorded offering assistance to Al Jazeera journalists to launder over $1.2 billion in illicit funds. Pattni's role in manipulating gold exports and laundering vast sums through international banking systems was exposed as part of the investigation.

Bradley Smith, acting Under Secretary for Terrorism and Financial Intelligence at the US Treasury, stated, "When corrupt actors like Pattni exploit governance loopholes, entire communities suffer, and public trust is undermined. As we mark International Anti-Corruption Day, the US remains committed to using all available tools to hold these individuals accountable for their actions."

Alongside the United States, the UK government also sanctioned Pattni, freezing his assets as part of its broader strategy to combat the illicit gold trade, which has been linked to corruption, human rights abuses such as child labor, and the financing of illegal activities. The UK government's statement condemned illicit gold trafficking, highlighting its role in enabling money laundering and sanctions evasion, particularly benefiting Russia in the context of the ongoing war in Ukraine.

"Illicit gold is an assault on the legitimate trade of a valuable commodity," the UK government said, noting that it contributes to corruption and undermines the rule of law. "The UK's sanctions will disrupt and deter this illicit trade by freezing the assets of five individuals, including notorious gold smuggler Kamlesh Pattni."

Pattni's involvement in the infamous Goldenberg scandal in the 1990s, a major corruption case in Kenya, further solidified his notoriety in global financial crimes. His smuggling network is said to have played a significant role in Zimbabwe's gold industry, which authorities claim is losing up to $100 million per month to smuggling operations.

The Reserve Bank of Zimbabwe, responding to the Gold Mafia exposé, froze the accounts of several individuals linked to the documentary, including Pattni, Simon Rudland, and Ewan McMillan. These sanctions mark a significant escalation in the international community's efforts to curb illicit financial flows and ensure that Zimbabwe's gold wealth is not siphoned off by criminal syndicates and corrupt officials.

With these sanctions, both the US and UK reaffirm their commitment to holding individuals accountable for activities that harm economic stability, human rights, and the global fight against corruption.