UK sanctions Kenyan businessman over illicit gold trade
The UK and US governments have imposed sanctions on British-Kenyan businessman Kamlesh Pattni, citing his alleged role in the illegal gold trade. Pattni, along with four others—including his wife and brother-in-law—will have their assets frozen, according to a statement from the UK Foreign, Commonwealth, and Development Office.
Pattni was previously linked to Kenya’s notorious Goldenberg corruption scandal, which is believed to have cost the country at least $600 million (£470 million). He has also faced accusations of involvement in the illicit gold trade in Zimbabwe, though he has denied these allegations.
The BBC has requested a comment from him.
The UK government statement described illicit gold trade as a serious threat to the legitimate gold market, fueling corruption, undermining the rule of law, and perpetuating human rights abuses such as child labor. It also highlighted Russia’s use of illegal gold to finance its war in Ukraine.
“Russia uses the illicit gold trade to launder money and evade sanctions, thereby supporting President Vladimir Putin’s war efforts,” the statement added.
In 2022, the UK and other Western nations banned the import of Russian gold to disrupt Moscow’s ability to fund the war.
The UK said the sanctions were meant to “disrupt and deter” the business dealings of Pattni.
He was allegedly one of the key architects of the Goldenberg scandal – a major gold and currency fraud in the 1990s which almost bankrupted Kenya and involved senior members of Kenya’s government.
He faced a trial in 2006 for his alleged role in the scheme, but proceedings collapsed. Pattni later became a self-proclaimed pastor.
According to the US Treasury, Pattni was friends with former Zimbabwe President Robert Mugabe and used this relationship to make money by exploiting the country’s natural resources.
“This fraudulent scheme robbed Zimbabwe’s citizens of the benefit of those natural resources while enriching corrupt government officials and criminal actors,” it read.
Pattni was implicated in Al-Jazeera’s explosive investigation into the “gold mafia” in Zimbabwe. He denied any involvement in money laundering or gold smuggling.
The US Treasury said Pattni’s illegal network spanned multiple countries.
The announcement comes as the UK government outlined a new programme to help tackle global corruption.
