The United Kingdom has imposed sanctions on British-Kenyan businessman Kamlesh Pattni. This move follows similar sanctions by the United States, targeting Pattni’s alleged involvement in illicit gold trading and money laundering networks.
The UK government announced the sanctions on Monday, stating that Pattni and his associates are central figures in a scheme that smuggles gold from southern Africa, undermining legitimate trade and enabling corruption. “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 UK noted.
Pattni’s Controversial History
Kamlesh Pattni rose to infamy in Kenya during the 1990s for his alleged involvement in the Goldenberg corruption scandal. This fraudulent scheme involved the alleged siphoning of hundreds of millions of dollars through fake gold and diamond exports, leaving Kenya’s economy reeling. Despite numerous allegations, Pattni managed to evade conviction, maintaining a controversial reputation in both Kenya and beyond.
According to the UK, Pattni now operates across southern Africa, using illicit gold exports as a conduit for laundering dirty money. The sanctions extend to his wife and brother-in-law, who are alleged to be complicit in his operations through a network of companies.
Global Anti-Corruption Measures
The UK’s action forms part of a broader anti-corruption agenda under its Global Anti-Corruption Sanctions Regulations 2021. The sanctions include asset freezes for Pattni and other implicated individuals, effectively cutting off their access to UK-based financial systems and assets.
Alain Goetz, a Belgian gold trader, was also sanctioned for reportedly smuggling gold extracted from mines in the Democratic Republic of the Congo (DRC). The UK claims these mines are controlled by armed groups notorious for human rights abuses. Another sanctioned individual, Anto Joseph, serves as the CEO of Paloma Precious, a company accused of purchasing over $300 million worth of Russian gold. The UK alleges this indirectly supports the Russian government, potentially funding its ongoing war in Ukraine.
The UK emphasized its commitment to disrupting the illicit gold trade, pledging to implement a government-wide anti-corruption strategy in 2025. This strategy aims to consolidate efforts across law enforcement, the private sector, academia, and civil society to develop a unified response to corruption.
The US Stance
The US sanctions against Pattni align closely with the UK’s efforts, signaling a coordinated international approach to dismantling his alleged network. The US Treasury Department previously accused Pattni of exploiting weak governance structures in Africa to facilitate illegal gold trading and money laundering.
Impact on Global Gold Trade
Illicit gold trade poses a significant threat to global economies and human rights. The UK highlighted that smuggling not only undermines legitimate trade but also entrenches practices such as child labor and violence in mining regions.
By targeting high-profile individuals like Pattni, Goetz, and Joseph, the UK and US aim to deter other actors in the illicit gold trade. While the sanctions are a significant step, experts argue that further measures are needed to address systemic weaknesses in gold trade regulations and enforcement.
A Message to the Global Community
The coordinated sanctions serve as a stern warning to those engaging in illegal trade practices. They underscore the need for international collaboration in combating corruption, ensuring that resources like gold contribute to development rather than exploitation.
As the UK prepares to roll out its comprehensive anti-corruption strategy, the global community will watch closely to see how these measures reshape the landscape of the illicit gold trade and reinforce the rule of law in affected regions.
