The US government has today designated Kenyan businessman Kamlesh Pattni and his web of supporters for his role global gold smuggling network. In a statement released by the US Department for Treasury’s Office of Foreign Assets Control Mr Pattni has been accused of facilitating illicit activities by bribing officials, deployed trusted supporters to disguise ownership, and weaving a global web of businesses to hide the illicit activities.
The US government has also sanctioned another 28 individuals and businesses involved in global gold smuggling and money laundering network based in Zimbabwe.
The statement said, this was pursuant to Executive Order E.O 13818 which targets perpetrators of serious human rights abuse and corruption around the World.
According to the US officials, this fraudulent scheme has robbed Zimbabwe’s citizens of the benefit of those natural resources while enriching corrupt government officials and criminal actors.
Bradley T. Smith
Across the globe, when corrupt actors like Pattni choose to exploit openings in governance structures to benefit themselves and their cronies, communities suffer and public trust is undermined,” said Acting Under Secretary of the Treasury for Terrorism and Financial Intelligence
He added: “Corruption respects no borders and its consequences are felt worldwide. As we mark International Anti-Corruption Day, the United States reaffirms our commitment to use all available tools to hold these individuals to account for their schemes.”
Pattni’s network illustrates the globalized nature of corruption and this action demonstrates a way to counter it: a whole-of-government approach and collaboration with allies and partners.
” In coordination with Treasury’s action, today, the UK designated Pattni, a UK citizen, and additional individuals,” read the statement released from Washington D.C today December 9, 2024.
Today’s action was coordinated with the Federal Bureau of Investigations (FBI) and the United Kingdom (UK), reflecting the principles of The United States Strategy on Countering Corruption, released in December 2021, which has been pivotal to the fight against corruption.
Pattni first came to global attention as a result of the infamous Goldenberg scandal in Kenya in the 1990s, wherein he was accused of manipulating Kenyan export incentives and corrupting senior Kenyan government officials. Although Pattni denied any wrongdoing, he fled Kenya and soon shifted his attention to Zimbabwe.
This shift to Zimbabwe and the global under dealings was prominently exposed in Al Jazeera in a series named Gold Mafia a year ago.
In Zimbabwe, Pattni befriended then-President Robert Mugabe and reestablished a scheme similar to the one he ran in Kenya. Pattni, as featured in public reporting and elsewhere, has enlisted a range of couriers and supporters to engage in export incentive fraud and bribery to enable his illicit profiting from the exportation of gold and diamonds from Zimbabwe.
Pattni and members of his network engaged in a scheme wherein they would generate cash via the sale of Zimbabwean natural resources in foreign jurisdictions. When Pattni and his network would return to Zimbabwe with the cash from the sale of the natural resources, they would overreport the amount of cash being brought back into the country, receive compensation on the overreported cash, and bribe government officials in Zimbabwe to receive protection for their illicit activity.
Pattni then hid the profits behind a global network of companies often controlled by members of the network, including frontmen, facilitators, couriers, and other supporters.
first came to global attention as a result of the infamous Goldenberg scandal in Kenya in the 1990s, wherein he was accused of manipulating Kenyan export incentives and corrupting senior Kenyan government officials. Although Pattni denied any wrongdoing, he fled Kenya and soon shifted his attention to Zimbabwe.
In Zimbabwe, Pattni befriended then-President Robert Mugabe and reestablished a scheme similar to the one he ran in Kenya. Pattni, as featured in public reporting and elsewhere, has enlisted a range of couriers and supporters to engage in export incentive fraud and bribery to enable his illicit profiting from the exportation of gold and diamonds from Zimbabwe.
Pattni and members of his network engaged in a scheme wherein they would generate cash via the sale of Zimbabwean natural resources in foreign jurisdictions. When Pattni and his network would return to Zimbabwe with the cash from the sale of the natural resources, they would overreport the amount of cash being brought back into the country, receive compensation on the overreported cash, and bribe government officials in Zimbabwe to receive protection for their illicit activity. Pattni then hid the profits behind a global network of companies often controlled by members of the network, including frontmen, facilitators, couriers, and other supporters.
