The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has sanctioned 28 individuals and businesses for alleged involvement in a global gold-smuggling and money-laundering network based in Zimbabwe. The network is reportedly spearheaded by Kamlesh Pattni, a Kenyan businessman linked to high-profile gold scandals.
A History of Scandal
Pattni, previously implicated in Kenya’s Goldenberg gold-trading scandal of the 1990s, fled to Zimbabwe after the controversy. There, he faced accusations of smuggling gold and diamonds and formed associations with Zimbabwe’s former leader, Robert Mugabe.
Sanctioned Entities with Industry Ties
Among the entities sanctioned by OFAC are several companies linked to the jewelry, gold, and diamond trades, including:
- Sun Multinational
- Marwa Investments
- Fiza Gold & Bullion Trading
- Golden Luxury Jewellery Trading
- Ruhmeer Diamonds
- Precious Bullion
Dubai-based Memories Golden Jewellery LLC was also sanctioned for its ties to Sun Multinational. The full list of sanctioned companies is available here.
International Collaboration
The United Kingdom has joined the U.S. in imposing new sanctions on Pattni and his network of associates. This coordinated effort underscores the global crackdown on illicit gold trading.
A Call for Due Diligence
Brad Brooks-Rubin, a former advisor to the U.S. State Department’s Office of the Sanctions Coordinator, emphasized the importance of vigilance within the jewelry industry:
“This joint action demonstrates the complexity of ensuring due diligence in the gold supply chain and highlights the urgent need for jewelers and suppliers to conduct proactive and integrated checks on sourcing partners.”
Jewelers are advised to regularly monitor OFAC and U.K. sanctions lists and implement enhanced due diligence processes to ensure ethical sourcing practices.