Undermining Sanctions
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Controversial mining magnate Dan Gertler appears
to have evaded US sanctions by using a suspected money laundering
network stretching from DRC to Europe and Israel
In December 2017, controversial mining magnate Dan Gertler had a problem. The United States had just sanctioned him for making his fortune through “corrupt mining deals” in the Democratic Republic of Congo (DRC), with the intention of ending Gertler’s lucrative career brokering deals between the Congolese state and some of the world’s largest multinational mining companies.US sanctions against Gertler were set to not only destroy his reputation, but also proscribe American individuals, banks and companies from entering into business with him. In our globalised economy, where most transactions are carried out in dollars via US banks, this meant that even non-American entities would have to avoid doing business with Gertler. For an international businessman like Gertler, these sanctions should have come as a financial death sentence.
However, our joint investigation with the Platform for the Protection of Whistleblowers in Africa (PPLAAF) suggests that Gertler may have been able to evade US sanctions and continue to operate freely in DRC’s mining sector. His close connections to those with power and influence in DRC could have helped allow him to continue doing business, as has his apparent use of an international money laundering network.
Key findings
Gertler in DRC: A brief history
- Dan Gertler has seemingly used an international money laundering network stretching from DRC to Europe and Israel to evade US sanctions. This network likely helped him funnel millions abroad and retain access to DRC’s mining sector.
- Two Congolese companies that may be proxies for Gertler secretly acquired new mining permits in the months leading up to the 2018 Congolese elections. These permits were granted by state-owned mining company Gécamines.
- Evidence suggests that Afriland First Bank was central in setting up any scheme that may have enabled Gertler to evade US sanctions
- Large mining companies including ERG and Sicomines continue to do business with a company still likely linked to Gertler, despite US sanctions against him.
- Commodity giant Glencore has continued to pay Gertler millions of euros after sanctions were imposed.
Gertler made his fortune by acting as a gatekeeper to DRC’s mining sector. International mining companies seeking access had to work with Gertler, and many were willing to do so since DRC is home to many valuable natural resources, including diamonds, gold, copper and coltan....
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Previously on Mr. Gertler:
December 2017
This is going-on two months old but is good background for some stuff that will be coming out in 2018....
November 2018
December 2019
December 2019
January 2020
