NAIROBI, Kenya, Dec 9 – The United Kingdom has announced sanctions against Kenyan businessman Kamlesh Pattni for money laundering through gold exports from Southern Africa.
Sanctions have also been imposed on Pattni’s wife and brother-in-law for their involvement in Russian money laundering activities via the United Arab Emirates.
“Pattni smuggles illicit gold out of southern Africa for use in money laundering,” the UK government said in a statement.
A statement from the UK government noted that the sanctions aim to disrupt and deter the illicit gold trade by freezing the assets of Pattni and his associates, who were implicated in the Goldenberg corruption scandal in the 1990s.
The UK government emphasized that illicit gold trade undermines legitimate markets, fueling corruption, eroding the rule of law, and entrenching human rights abuses such as child labor.
Additionally, the UK stated that Russia uses the illicit gold trade to launder money and evade sanctions, thereby supporting President Vladimir Putin’s war efforts.
The UK also sanctioned Belgian gold trader Alain Goetz, who oversees gold refineries and companies across Africa.
Goetz is accused of smuggling gold mined in the Democratic Republic of the Congo (DRC) by armed groups implicated in severe human rights violations.
His sanctions fall under the Democratic Republic of the Congo (Sanctions) (EU Exit) Regulations 2019.
Additionally, Anto Joseph, CEO of several gold trading companies, including Paloma Precious, was sanctioned under the Russia (Sanctions) (EU Exit) Regulations 2019.
The UK alleges that Paloma Precious has purchased over $300 million worth of Russian gold, indirectly financing the Russian government and its war in Ukraine.
“Paloma Precious’ transactions have contributed to revenue streams that could fund Russia’s war efforts,” the statement read.
UK Foreign Secretary David Lammy emphasized the threat posed by corruption to national and international security.
“It[corruption] enables the activities of dictators, smugglers and organised criminals around the world, making our streets less safe and our borders less secure,” Lammy said.
Lammy also referenced the recent ouster of Syria’s Bashar al-Assad, claiming his regime had been sustained by proceeds from the illegal Captagon drug trade.
The UK government pledged to intensify efforts to combat corruption. Lammy announced additional funding for the National Crime Agency’s International Corruption Unit and welcomed Baroness Hodge as the UK’s Anti-Corruption Champion.
The UK described illicit gold trade as a threat to legitimate commerce, fueling corruption, undermining the rule of law, and perpetuating human rights abuses like child labor.
The government also accused Russia of leveraging illicit gold to evade sanctions and fund President Vladimir Putin’s war in Ukraine.
To address these challenges, the UK announced plans to develop a comprehensive anti-corruption strategy by 2025.
The initiative will involve collaboration across government, law enforcement, private sector, civil society, and academia to create a unified national response.
The sanctions follow Operation Destabilize, a major investigation by the National Crime Agency (NCA) that exposed Russian money laundering networks linked to organized crime globally.
Source: capitalfm
