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The governments of the UK and US have imposed sanctions on Kamlesh Pattni, a British-Kenyan businessman, accused of involvement in a global illicit gold trade that fuels corruption, human rights abuses, and money laundering. In this crackdown, which freezes his assets and targets his business operations, implicate his wife, brother-in-law, and associates.
Pattni has faced allegations for decades, starting with Kenya’s infamous Goldenberg scandal in the 1990s. The scheme, one of the most colossal fraud cases in Kenya’s history, siphoned from the government an estimated $600 million by exploiting export compensation incentives for fictitious gold and diamond trades. Accused in 2006, charges against Pattni never resulted in conviction, as he would later rebrand as a pastor.
His name has recently cropped up in the context of smuggling operations in Zimbabwe. Investigations, such as the Gold Mafia series by Al Jazeera, exposed how Pattni and others resort to networks that export illicit gold to Dubai under the cover of legitimate trade. These schemes employ shell companies so that Pattni and his partners can obscure transactions with a view to laundering both money and precious metals. Allegations also link his activities to high-profile political figures, including the late Zimbabwean President Robert Mugabe.
The gold trade has wider global implications. The UK Foreign and Commonwealth Office says it undermines legitimate commerce and fuels systemic corruption. Illegally mined gold is often linked to human rights violations, such as child labor in unsafe conditions. Furthermore, the UK and US allege that the trade is exploited by Russia to bypass international sanctions, funding President Vladimir Putin’s war in Ukraine. Russia’s use of gold for sanctions evasion became a significant concern following Western bans on Russian gold imports in 2022.
The sanctions against Pattni are part of the UK’s and US’s coordinated effort to combat corruption across the world and disrupt criminal networks. The measures not only freeze assets but also seek to dismantle the infrastructure that supports such illicit activities. Along with Pattni, several individuals and entities involved in the trade-including Belgian gold trader Alain Goetz and gold firms accused of purchasing smuggled Russian gold-have also been targetedz.
These sanctions are part of the UK’s wider package of anti-corruption measures, including a comprehensive framework on the fight against economic crime to be published in 2025. The initiative will be in collaboration across government, law enforcement, private sectors, and international partners to strengthen enforcement and promote transparency.
Targeting high-profile figures like Pattni, the UK and US want to send a message: no one is above scrutiny. Their actions underscore the critical need to address economic crimes that perpetuate inequality and undermine governance. Further revelations in investigations into illicit gold trading networks may show more players and corrupt systems that are exploiting one of the most valuable resources in the world.
