The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has announced sanctions against 28 individuals and companies, citing their involvement in a global gold-smuggling and money-laundering operation led by Kamlesh Pattni, a Kenyan businessman notorious for his role in the Goldenberg gold-trading scandal of the 1990s.
A Web of Illicit Activities
After fleeing Kenya following the Goldenberg scandal, Pattni established operations in Zimbabwe. OFAC accuses him of using “export incentive fraud and bribery” to profit from the illegal trade of gold and diamonds. The sanctioned companies, many tied to the jewelry and diamond industries, include:
- Sun Multinational DMCC
- Marwa Investments
- Fiza Gold and Bullion Trading
- Golden Luxury Jewellery Trading
- Memories Golden Jewellery
- Ruhmeer Diamonds DMCC
- Precious Bullion DMCC
OFAC’s investigation revealed how Pattni’s network used bribes, loyal associates, and a web of global businesses to disguise the scale and reach of the operation.
Collaboration with International Authorities
The sanctions were the result of a coordinated effort between OFAC, the Federal Bureau of Investigation (FBI), and the United Kingdom, which also imposed sanctions on Pattni and his associates. The designation exposes how Zimbabwe’s corruption enabled Pattni’s activities to extend across multiple countries.
A Call for Industry Vigilance
OFAC emphasized the risks posed by this network, urging stakeholders in the diamond and jewelry industry to implement rigorous due diligence processes. The action serves as a stark reminder of the importance of ethical sourcing and compliance to prevent unwitting complicity in illicit activities.