The United States has imposed sanctions on 28 individuals and businesses in the diamond and jewelry industry, accusing them of involvement in a global gold-smuggling and money-laundering operation.
The US Department of the Treasury’s Office of Foreign Assets Control (OFAC) revealed that the operation is based in Zimbabwe and led by Kamlesh Pattni, a Kenyan businessman infamous for his role in the 1990s Goldenberg gold-trading scandal.
After fleeing to Zimbabwe, Pattni was allegedly involved in export incentive fraud and bribery schemes, enabling him to profit illicitly from the trade of gold and diamonds, according to an OFAC statement released Monday.
Among the sanctioned entities are several companies tied to Pattni and connected to the diamond, gold, and jewelry industries, including Sun Multinational DMCC, Marwa Investments, Fiza Gold and Bullion Trading, Golden Luxury Jewellery Trading, Memories Golden Jewellery, Ruhmeer Diamonds DMCC, and Precious Bullion DMCC.
“Kamlesh Pattni’s global network has facilitated illicit activities through bribery, trusted supporters masking ownership, and an intricate web of businesses to obscure corruption,” OFAC stated.
The agency emphasized that Pattni’s operations exemplify how illicit activities based in Zimbabwe expanded across multiple countries using corruption and deceit.
The sanctions were imposed in coordination with the Federal Bureau of Investigation (FBI) and the UK, which also enacted measures against Pattni, a UK citizen, and his associates.
These actions highlight international efforts to dismantle complex corruption schemes involving the exploitation of precious metals and gemstones.
