Close Menu
The Jeweller South AfricaThe Jeweller South Africa
    The Jeweller South AfricaThe Jeweller South Africa
    • News
      • Industry News
    • Events
    • Consumer Education
      • The 4Cs of Diamonds
      • Diamond Cut
      • Diamond Clarity
      • Diamond Carat
      • Diamond Colour
      • Diamond Shapes
    • About Us
    • Contact
    • Diamond Prices
    Wednesday, June 4
    The Jeweller South AfricaThe Jeweller South Africa
    Home»Industry News»US and UK Impose Sanctions on Global Gold-Smuggling and Money-Laundering Network
    gold bars adobestock 717512193 1
    Industry News

    US and UK Impose Sanctions on Global Gold-Smuggling and Money-Laundering Network

    Jessica MabuzaBy Jessica Mabuza13/12/20243 Mins Read
    Share
    Facebook Twitter LinkedIn Pinterest Email

    The United States and the United Kingdom have imposed sanctions on 28 individuals and entities linked to a global gold-smuggling and money-laundering network allegedly led by Kamlesh Pattni. The operation, centred in Zimbabwe, is accused of exploiting the country’s gold and diamond resources through bribery, fraudulent reporting, and a network of companies used to conceal these activities.

    Pattni, a Kenyan businessman and UK citizen, became known in the 1990s for his alleged involvement in Kenya’s Goldenberg scandal. Following accusations of fraudulent gold trading, Pattni moved to Zimbabwe, where he is said to have continued developing a network facilitating the smuggling and sale of gold and diamonds, benefiting corrupt officials and depriving Zimbabwean citizens of revenues from their natural resources.

    Companies and Individuals Designated

    The US Department of the Treasury’s Office of Foreign Assets Control (OFAC) identified several companies linked to Pattni. These include Dubai-based Memories Golden Jewellery LLC, Sun Multinational DMCC, Golden Luxury Jewellery Trading, Ruhmeer Diamonds DMCC, and Precious Bullion DMCC, among others. OFAC stated that these entities were used to launder proceeds and obscure ownership through associates and intermediaries.

    In a statement, OFAC said: “The global network led by Kamlesh Parrni has facilitated illicit activities by bribing officials, deploying trusted supporters to mask ownership, and weaving a global web of businesses to hide the illicit activities.”

    Brad Brooks-Rubin, a former special advisor to the US State Department, commented on the case, saying: “This joint action shows how complex and challenging due diligence on the gold supply chain can be—but how essential it is to get right. This is an urgent and direct reminder to jewellers and their suppliers to not just check the OFAC or UK sanctions lists periodically but to conduct proactive, integrated, and enhanced due diligence on those they are sourcing from.”

    International Anti-Corruption Efforts

    The sanctions, announced on International Anti-Corruption Day, form part of a broader effort by the US and UK to combat global corruption. OFAC highlighted that its actions are coordinated with the Federal Bureau of Investigation (FBI) and the UK government, demonstrating a unified approach to targeting international money laundering and smuggling networks.

    Bradley T. Smith, Acting Under Secretary of the Treasury for Terrorism and Financial Intelligence, remarked: “Across the globe, when corrupt actors like Pattni choose to exploit openings in governance structures to benefit themselves and their cronies, communities suffer and public trust is undermined. Corruption respects no borders and its consequences are felt worldwide.”

    Implications for the Jewellery Industry

    For jewellers, this action serves as a reminder of the importance of robust due diligence in supply chains. OFAC emphasised that businesses engaging with sanctioned individuals or entities could face penalties. The jewellery industry is particularly vulnerable due to its reliance on precious materials sourced globally, making rigorous compliance protocols essential.

    By adhering to sanctions lists and implementing thorough anti-money laundering measures, jewellers can minimise risks of reputational damage and regulatory violations. Proactive measures to ensure the traceability of materials not only protect businesses but also reinforce consumer trust in ethically sourced products.

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
    Jessica Mabuza

    Jessica aims to be first to bring the news on industry updates, while her finance background informs her insights on how broader economic trends affect the jewellery trade

    Related Posts

    CIBJO President Dr Gaetano Cavalieri Receives ICA Lifetime Achievement Award

    23/05/2025

    Kimberley Process Moves Closer to Redefining ‘Conflict Diamonds’

    19/05/2025

    GIA Launches Free GemKit Educational Resource for Schools Globally

    15/05/2025

    De Beers Quietly Offers Discounted Rough Diamonds to Selected Clients

    15/05/2025

    Alrosa Recovers Russia’s Largest Gem-Quality Diamond at Reopened Mir Mine

    14/05/2025

    De Beers Group to Wind Down Lightbox Lab-Grown Diamond Business

    09/05/2025

    Jewellery industry news & insights delivered straight to your inbox

    Get the free 5-minute newsletter read by Jewellery Industry professionals who want to get ahead

    Your subscription could not be saved. Please try again.
    Your subscription has been successful.
    the jeweller sa logo 300 w

    Explore

    • About
    • Contact

    Reach Our Audience

    • Advertise
    • Submit a press release
    • Submit an opinion piece

    Consumer Education

    • 4Cs of Diamonds
    • Diamond Price Chart

    The Jeweller South Africa is part of Loupe Media Network

    Privacy policy | Terms of use | Cookie Policy

    Type above and press Enter to search. Press Esc to cancel.

    We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept All”, you consent to the use of ALL the cookies. However, you may visit "Cookie Settings" to provide a controlled consent.
    Cookie SettingsAccept All
    Manage consent

    Privacy Overview

    This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
    Necessary
    Always Enabled
    Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
    CookieDurationDescription
    cookielawinfo-checkbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
    cookielawinfo-checkbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
    cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
    cookielawinfo-checkbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
    cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
    viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
    SAVE & ACCEPT