The United States Department of the Treasury has sanctioned Kamlesh Pattni, alongside 27 other individuals, for alleged involvement in a global gold smuggling and money laundering network centered in Zimbabwe.
The sanctions, issued by the Treasury’s Office of Foreign Assets Control (OFAC), were announced to mark International Anti-Corruption Day.
Pattni, who gained notoriety for his role in Kenya’s Goldenberg scandal in the 1990s, is accused of orchestrating a complex international network that facilitates bribery, money laundering, and fraudulent trade practices.
According to the Treasury, Pattni’s schemes have exploited Zimbabwe’s natural resources for personal gain, enriching corrupt officials and criminal actors while depriving the nation’s citizens of their rightful benefits.
“Across the globe, when corrupt actors like Pattni exploit governance structures to benefit themselves and their cronies, communities suffer, and public trust is eroded,” said Bradley T. Smith, Acting Under Secretary for Terrorism and Financial Intelligence. “Corruption knows no borders, and its effects are felt worldwide. The United States remains committed to holding such individuals accountable.”
A Global Network of Corruption
The Treasury’s statement highlighted how Pattni’s network operates across multiple countries, using trusted associates to hide ownership, establish fraudulent companies, and bribe officials. His alleged activities include inflating export revenue, engaging in fraudulent trade practices, and laundering money through a web of businesses.
In Zimbabwe, Pattni is accused of leveraging his connections with former President Robert Mugabe to establish operations similar to those he ran in Kenya.
His network has reportedly smuggled gold and diamonds, generating cash from sales abroad and manipulating returns to secure additional funds.
Key associates in Pattni’s operations include his brother-in-law Mukesh Manuskhlal Vaya, who oversees several companies, and Rahul Sood, a director in Pattni-controlled businesses. Other individuals, including family members and close allies, are said to manage his enterprises and shield his interests.
The sanctions imposed on Pattni are part of a coordinated effort by the U.S. and the United Kingdom to combat corruption. The UK has also imposed its own restrictions on Pattni and other individuals involved in the network. The action aligns with the U.S. Strategy on Countering Corruption, emphasizing international cooperation to disrupt global corruption schemes.
The Treasury revealed that OFAC has targeted over 100 individuals and entities involved in corruption across more than a dozen countries over the past year. On this occasion, the Federal Bureau of Investigation (FBI) collaborated with the Treasury to impose the sanctions.
Pattni first came to prominence during Kenya’s Goldenberg scandal, where he was accused of manipulating export incentives and bribing senior officials. Though he denied wrongdoing, he later fled Kenya and shifted operations to Zimbabwe.
The Treasury noted that Pattni’s network extends beyond Africa, with connections in the United Arab Emirates, the British Virgin Islands, Singapore, and Kyrgyzstan. These operations include companies engaged in gold trading, diamond sales, and real estate investments.
Pattni’s activities reportedly pose a significant threat to the stability of global financial systems, with his network continuing to seek new opportunities in resource-rich countries.
The U.S. sanctions aim to disrupt this vast web of corruption, preventing Pattni and his associates from accessing their illicit wealth. Observers view this action as a critical step in addressing the globalized nature of corruption and holding its perpetrators accountable.
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