This is a matter of great concern that international organised crime groups are smuggling gold and diamonds into Bangladesh and then smuggling those out to neighbouring countries. A story headlined “Over Tk 91,000cr gold, diamond smuggled into country a year” published in this daily on Tuesday says that an average of Tk 250 crore worth of these precious items illegally enter the country daily.
The organised crime groups are now applying the latest technologies in international trafficking in gold and diamond smuggling. Therefore, members of different law enforcement and intelligence agencies face difficulties and challenges in detecting the hardened criminals involved in the smuggling of gold and diamond into India.
However, most of the gold smuggling cases see no headway due to insufficient evidence, as investigating police officers fail to glean vital information from the arrestees during interrogation and subsequent investigation. Around Tk 80,300 crore worth of gold and Tk 10,950 crore worth of diamond are smuggled into Bangladesh annually. This illicit trade results in significant economic losses, including reduced remittances and increased money laundering.
Gold smuggling predominantly occurs through the borders of 30 districts adjacent to India, particularly in Meherpur, Kushtia, Chuadanga, Jhenaidah, Jashore, and Satkhira. Much of the smuggled gold is then sent to India.
In 2021, the Cabinet Committee on Economic Affairs gave its nod by approving an amendment to the “Gold Policy 2018”. Since then importers can import raw gold and necessary equipment to refine it locally.
An average of Tk 250 crore
worth of these precious
items are being smuggled
into the country daily
As part of a move to formalise the import of bulk gold from abroad, the government earlier framed the “Gold Policy 2018” in order to check the smuggling of gold and ease the import and export of the precious metal as well as ensure transparency in gold trading in the country.
Under the policy, the government is providing all sorts of support, including cash incentives and land in the special economic zones, to gold importers and exporters. The Bangladesh Bank has also appointed dealers for importing gold bars to meet the country’s demand.
The dealers are allowed to import gold through bonds, but for that they have to get bond licences in line with the existing law. However, gold smuggling activities are still rampant in border areas despite regular enforcement operations mobilised by the home ministry. The government will have to take decisive action to halt the annual smuggling of gold and diamond worth approximately Tk 91,250 crore.
There is no alternative to stronger policy support and government intervention to combat illegal trade. The law enforcement agencies will have to intensify efforts to stop smuggling activities. Establishing dedicated government monitoring cells in collaboration with the concerned stakeholders should be ensured.
With over 1.5 crore Bangladeshi migrants abroad, especially in the Middle East, there is a significant demand for bringing high-quality gold into the country. A smart and easy policy would reduce smuggling.
Illegal money laundering can be reduced to a large extent if the government can stop the smuggling of gold bars and diamond into the country from abroad.
If the government takes strong measures in tackling gold bar and diamond smuggling, it will help resolve the dollar crisis.
