Kamlesh Pattni sanctioned in UK, US over alleged gold smuggling, money laundering

A few weeks after US authorities charged Indian billionaire Gautam Adani and seven others with bribery and fraud, a similar axe on Monday fell on another prominent businessman: Kamlesh Pattni.

On International Anti-Corruption Day, the US Department of the Treasury’s Office of Foreign Assets Control (OFAC) imposed sanctions on Pattni for his alleged role in a global gold smuggling and money laundering network based in Zimbabwe.

According to US authorities, Pattni allegedly led a sophisticated network that facilitated illicit activities by bribing officials, employing trusted supporters to obscure ownership, and constructing an intricate web of businesses to conceal illegal operations.

This fraudulent scheme, the US claims, has deprived Zimbabwe’s citizens of their natural resources' benefits while enriching corrupt government officials and criminal actors.

The designation of Pattni’s web of supporters and companies illustrates how illicit activity based in Zimbabwe spread across multiple countries, using a web of trusted supporters, and bribing government officials to concoct a complex corruption scheme.

Kamlesh Mansukhlal Damji Pattni first came to global attention in the 1990s during Kenya’s Goldenberg scandal, a Ksh.13.5 billion corruption case involving the manipulation of export incentives and bribery of senior government officials.

Although Pattni denied any wrongdoing, he fled Kenya amid mounting scrutiny and eventually shifted his operations to Zimbabwe.

In Harare, Pattni maintained a lavish lifestyle, forging close ties with then-president Robert Mugabe and replicating schemes similar to those he allegedly orchestrated in Kenya.

Operating between Harare and Dubai, he expanded his illicit activities to include gold and diamond exports.

Pattni, who reportedly converted to Christianity and adopted the name “Brother Paul,” also became a preacher, though his alleged illegal dealings continued unabated.

The UK has joined the US in targeting Pattni’s operations.

In a broader effort to combat money laundering and disrupt Russia’s use of illicit gold to evade sanctions and finance its war efforts, the UK imposed asset freezes on five individuals, including Pattni and his enablers.