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The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has announced sanctions against 28 individuals including some wealthy Kenyans and entities linked to a global gold smuggling and money laundering network.
These sanctions, enacted under Executive Order 13818, target individuals engaged in corruption and human rights abuses worldwide.
The network, spearheaded by Kamlesh Pattni, a controversial figure infamous for his involvement in Kenya's 1990s Goldenberg scandal, has been implicated in a web of bribery and fraudulent activities.
The scheme has reportedly deprived Zimbabweans of the benefits of their natural resources while enriching corrupt officials and criminal associates.
Pattni’s operations leveraged a vast array of frontmen and businesses to mask ownership and orchestrate the laundering of illicit proceeds.
A Coordinated Global Effort
The sanctions were implemented on December 9, in collaboration with domestic entities, including the Federal Bureau of Investigation (FBI), and international allies, particularly the United Kingdom (UK).
The UK simultaneously designated Pattni, a UK citizen, along with other individuals.
These measures are part of the U.S. Strategy on Countering Corruption, unveiled in 2021, which underscores the globalised nature of corruption and the necessity of international cooperation to combat it.
Bradley T. Smith, Acting Under Secretary of the Treasury for Terrorism and Financial Intelligence, highlighted the significance of these actions.
“When corrupt actors like Pattni exploit governance loopholes, they undermine communities and erode public trust,” he remarked.
Corruption transcends borders, and its consequences are felt globally. These sanctions affirm our commitment to holding such individuals accountable.
Decades of Corruption Across Borders
Pattni first gained notoriety during Kenya's Goldenberg scandal, where he allegedly manipulated export incentives and bribed senior government officials.
Following the allegations, he relocated to Zimbabwe and established operations that mirrored his earlier activities. Reports indicate that Pattni cultivated relationships with Zimbabwean government officials, including former President Robert Mugabe, to secure protection for his illicit dealings.
In Zimbabwe, Pattni’s network employed tactics such as overreporting cash returns from gold and diamond exports to claim additional incentives fraudulently.
Proceeds from these activities were hidden through a sprawling web of companies spanning multiple countries.
Complex Network of Front Companies
Central to Pattni’s operations is Sun Multinational DMCC, headquartered in the United Arab Emirates, and its subsidiaries, including Fiza Gold and Bullion Trading L.L.C and Golden Luxury Jewellery Trading L.L.C.
The network also features entities such as Rubini Investment Group Limited in the British Virgin Islands, Samaria Holdings Limited in the UAE, and Manurama Limited in Kenya.
Key figures within the network include Pattni’s nephew Mishaal Hitesh Pattni and associates Mukesh Mansukhlal Vaya and Rahul Sood, who play pivotal roles in managing these companies.
List of sanctioned people includes:
Kamlesh Mansukhlal Damji Pattni - Nationalities: Kenya, United Kingdom
Mishaal Hitesh Pattni - Nationality: Kenya
Mukesh Mansukhlal Vaya - Nationality: Kenya
Sanjay Keshavji Vaya - Nationality: Kenya
Raj Vaya Sanjay (a.k.a. Skorus, Raj) - Nationality: Kenya
Rahul Sood - Nationality: India
Swetang Sinha - Nationality: India
David Paul Crosby - Nationality: United Kingdom
Dmytro Abakumov - Nationality: Ukraine
Abdulqader Hasan Yahya Al-Murtadha (multiple aliases) - Nationality: Yemen
Sanctions and Implications
The sanctions freeze all U.S.-linked assets of the designated individuals and entities.
Furthermore, any transactions involving their property within U.S. jurisdiction are prohibited.
Foreign financial institutions that facilitate significant transactions for these entities may also face sanctions.
The U.S. Treasury emphasised that these actions aim to promote transparency and accountability, not merely punishment.
The department encouraged designated individuals to seek removal from sanctions lists if they demonstrate a behaviour change.
This move concludes a year marked by intensified efforts to combat corruption.
Over 2024, the Treasury has sanctioned more than 100 individuals and entities globally and introduced reforms to enhance the U.S.’s anti-money laundering framework.
These measures reflect a commitment to safeguarding financial systems from misuse while promoting fairness and transparency.