The US has placed sanctions on a number of companies in the diamond and jewelry industry, claiming they were involved in a global gold-smuggling and money-laundering operation.
The US Department of the Treasury’s Office of Foreign Assets Control (OFAC) said 28 individuals and businesses were involved in the scheme, which is based in Zimbabwe and led by Kamlesh Pattni, a Kenyan businessman who was accused of involvement in the Goldenberg gold-trading scandal in the 1990s. He then fled to Zimbabwe where he was claimed to have been engaged in “export incentive fraud and bribery to enable his illicit profiting from the exportation of gold and diamonds,” OFAC noted Monday.
OFAC sanctioned several companies linked to Pattni, many with links to the diamond, jewelry and gold industries, including Sun Multinational DMCC, Marwa Investments, Fiza Gold and Bullion Trading, Golden Luxury Jewellery Trading, Memories Golden Jewellery, Ruhmeer Diamonds DMCC, and Precious Bullion DMCC.
“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,” OFAC said. “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.”
OFAC worked together with the Federal Bureau of Investigation (FBI) and the UK, which has also implemented sanctions against Pattni, a UK citizen, and his associates.
Image: Gold nuggets. (Shutterstock)
