UK sanctions Kenyan businessman over illicit gold trade
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The UK and US have sanctioned British-Kenyan businessman Kamlesh Pattni over his alleged involvement in the illicit gold trade, including ties to corruption and illegal financial networks.
The UK and US governments have imposed sanctions on Kamlesh Pattni, a British-Kenyan businessman, accusing him of involvement in the illicit gold trade. Along with Pattni, four other individuals, including his wife and brother-in-law, will face asset freezes as part of the sanctions. This action was announced by the UK’s Foreign, Commonwealth, and Development Office, which stated that Pattni’s involvement in illicit gold dealings had prompted the sanctions.
Pattni is perhaps most infamous for his role in Kenya’s Goldenberg scandal, one of the country’s largest corruption cases. The scandal, which erupted in the 1990s, allegedly cost Kenya around $600 million (£470 million). Although Pattni has previously denied any wrongdoing in connection with the illicit gold trade in Zimbabwe, the UK and US authorities believe he was involved in exploiting this illegal business.
The UK government’s statement highlighted the serious impact of the illicit gold trade on global markets. It noted that this illegal trade undermines legitimate commerce, fuels corruption, and contributes to human rights abuses, including child labor. Additionally, the UK accused Russia of using illegal gold to fund its war in Ukraine, a claim that underscores the broader geopolitical implications of the gold trade. By using illicit gold to launder money and circumvent sanctions, Russia is said to be bolstering President Vladimir Putin’s war efforts. This concern has led the UK and other Western nations to impose a ban on the import of Russian gold since 2022.
The sanctions against Pattni are part of broader efforts to disrupt the global illicit gold network and prevent further financial crimes. According to the UK government, the measures aim to “deter and disrupt” the business operations of Pattni, who is believed to have been a key figure in the Goldenberg scandal. This scandal involved massive gold and currency fraud, which nearly led to Kenya’s financial collapse and implicated several senior government officials. Despite facing a trial in 2006, the case against Pattni collapsed, and he went on to reinvent himself as a self-proclaimed pastor.
Beyond Kenya, Pattni’s connections have extended to Zimbabwe, where he is alleged to have exploited the country’s gold resources for personal gain. According to the US Treasury, Pattni had a close relationship with Zimbabwe’s former president, Robert Mugabe. This relationship enabled him to make significant profits from exploiting Zimbabwe’s natural resources, which allegedly deprived the country’s citizens of the benefits while enriching corrupt officials and criminals. The US Treasury has accused Pattni of operating an illegal network that spanned multiple countries, highlighting the global scale of his alleged illicit activities.
Pattni’s involvement in the illicit gold trade was further exposed in an investigation by Al Jazeera, which delved into the “gold mafia” operating in Zimbabwe. Although Pattni denied any involvement in money laundering or gold smuggling, the investigation shed light on the extent of the illegal operations in which he was implicated.
The sanctions against Pattni are part of a broader international effort to combat corruption and illegal trade. The UK government recently outlined a new program aimed at tackling global corruption, which underscores the importance of addressing these issues at an international level. By targeting individuals like Pattni, the UK and US governments hope to send a clear message about the need to disrupt illicit financial networks and reduce the global impact of corruption.
As a result of these sanctions, Pattni and the other individuals named will face significant restrictions on their financial activities. The freezing of their assets is expected to prevent them from accessing the financial systems of both the UK and US. These measures are seen as crucial in the ongoing fight against corruption and the illicit trade that fuels it, as well as in curbing the flow of illegal gold that has broader geopolitical consequences.
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