UK sanctions Kenyan businessman over illicit gold trade

UK sanctions Kenyan businessman over illicit gold trade

The UK and US governments have imposed sanctions on a British-Kenyan businessman over his alleged involvement in the illicit gold trade.

Kamlesh Pattni, and four others including his wife and brother-in-law, will have their assets frozen, a statement from the UK Foreign and Commonwealth and Development Office

He was implicated in one of Kenya’s biggest corruption scandals, Goldenberg, which is believed to have cost the country at least $600m (£470m). He has since faced allegations of involvement in the illicit gold trade in Zimbabwe, which he has previously denied.

Background

About the ICU

The International Corruption Unit (ICU) investigates international bribery, corruption and related money-laundering offences. Its key role is to investigate:

• money laundering in the UK resulting from corruption of high-ranking officials overseas.
• bribery involving UK–based companies or nationals which has an international element.
• cross-border bribery where there is a link to the UK.

The ICU also traces and recovers the proceeds of international corruption.

Today’s sanctions consist of three individuals designated under the UK’s Global Anti-Corruption Sanctions Regulations 2021:

• Kamlesh Pattni, a British-Kenyan businessman who has used bribery to export gold from southern Africa as a means of laundering dirty money.
• Also designated are Pattni’s wife and brother-in-law, who have a long history of involvement in his network of companies.

A further individual is designated under the Democratic Republic of the Congo (Sanctions) (EU Exit) Regulations 2019:

• Alain Goetz, a Belgian gold trader at the head of various gold refineries and companies across Africa. Goetz has smuggled illicit gold extracted from mines in the DRC controlled by armed groups which have been involved in serious human rights violations.

A further individual is designated under the Russia (Sanctions) (EU Exit) Regulations 2019:

• Anto Joseph, the CEO and manager of several gold trading companies, including Paloma Precious (designated by the UK in November 2023). Paloma Precious has purchased more than USD 300 million of Russian gold, thereby indirectly providing revenue for the Government of Russia which could be used for the war in Ukraine.

Definitions:

• Asset freeze: an asset freeze prevents any UK citizen, or any business in the UK, from dealing with any funds or economic resources which are owned, held or controlled by the designated person. It also prevents funds or economic resources being provided to or for the benefit of the designated person. UK financial sanctions apply to all persons within the territory and territorial sea of the UK and to all UK persons, wherever they are in the world.
• Travel ban: a travel ban means that the designated person must be refused leave to enter or to remain in the United Kingdom, providing the individual is an excluded person under section 8B of the Immigration Act 1971.
• Trust services sanctions prohibit the provision of trust services to or for the benefit of a designated person, including the creation, operation or management of a trust or similar arrangement, within the UK or by UK persons outside the UK.
• Source:https://www.gov.uk/government/news/new-anti-corruption-champion-and-nca-funding-as-campaign-against-corruption-steps-up