UK and US Sanction British-Kenyan Businessman Over Alleged Illicit Gold Trade

Authorities in the United Kingdom and the United States have imposed restrictive measures on Kamlesh Pattni, a British-Kenyan businessman, due to his alleged participation in the unlawful gold trade. A statement released by the UK Foreign and Commonwealth and Development Office indicated that Mr. Pattni, along with four other individuals including his spouse and brother-in-law, will have their assets frozen. He was previously linked to the Goldenberg scandal, one of Kenya’s most significant corruption cases, which is estimated to have cost the nation at least $600m (£470m). More recently, he has faced accusations of involvement in the illicit gold trade within Zimbabwe, allegations he has previously refuted. The BBC has sought his comment regarding these developments. The UK statement highlighted that “Illicit gold is an assault on the legitimate trade of a valuable commodity, fuelling corruption, undermining the rule of law, and entrenching human rights abuses such as child labour.” The statement further noted Russia’s utilization of illegal gold to finance its military operations in Ukraine. It continued, stating that “”Russia uses the illicit gold trade to launder money and evade sanctions, and in doing so bolsters [President Vladimir] Putin’s war efforts.”” In 2022, the UK, alongside other Western nations, prohibited the import of Russian gold to curtail Moscow’s capacity to fund the conflict. The UK government specified that these sanctions aim to “disrupt and deter” Mr. Pattni’s commercial activities. He was reportedly a principal figure behind the Goldenberg scandal, a substantial gold and currency fraud in the 1990s that nearly led to Kenya’s bankruptcy and implicated high-ranking members of the Kenyan government. Although he faced a trial in 2006 concerning his alleged role in this scheme, the legal proceedings ultimately collapsed. Subsequently, Pattni declared himself a pastor. The US Treasury reported that Mr. Pattni maintained a friendship with former Zimbabwe President Robert Mugabe, a relationship he allegedly leveraged to generate wealth by exploiting Zimbabwe’s natural resources. The Treasury stated, “”This fraudulent scheme robbed Zimbabwe’s citizens of the benefit of those natural resources while enriching corrupt government officials and criminal actors.”” Pattni’s name also emerged in Al-Jazeera’s extensive investigation into the “gold mafia” in Zimbabwe, though he denied any involvement in money laundering or gold smuggling. The US Treasury also indicated that Pattni’s unlawful network extended across multiple countries. This announcement coincides with the UK government’s unveiling of a new initiative designed to combat global corruption.