Gold smuggling — a lucrative illegal activity due to high demand and a source of huge profit — is a crucial problem. It is often associated with organized crime groups, has severe economic consequences and takes place in many countries in Asia, Africa and other regions through maritime, air and land routes. But gold smugglers use different countries including, but not limited to, the United Arab Emirates, Hong Kong, Switzerland, Singapore and DR Congo as major international transit routes for smuggling gold. The illegal transportation of gold worth hundreds of billions of US dollars across borders every year avoids taxes, leading to the loss of revenue for many countries, and contributes to the exploitation of vulnerable populations in mining regions.
It is notable that high profit based, corruption oriented and other factors are responsible for gold smuggling. The high import duties in certain countries, the desire to evade taxes and the use of gold as a form of currency in illegal activities are some notable causes. Additionally, and importantly, corruption within customs agencies, demand for gold in black markets, high profits, a lack of enforcement of regulations, weak border control measures and a lack of legal avenues for purchasing gold lead to gold smuggling in different countries. Though many governments allow gold imports, smugglers do not use legal channels rather they use illegal means for high profits. Among others, porous borders, political instability and economic crises facilitate gold smuggling across borders.
Governments definitely take regulatory and other steps to address gold smuggling, leading to different positive outcomes in many countries. Different countries have implemented strict border controls, increased surveillance at airports and ports and imposed stricter penalties for those caught in smuggling gold. Some countries have also introduced measures to regulate and monitor the gold industry and carry out crackdowns on illicit activities. Additionally, government authorities are working to improve coordination with international agencies to track and intercept illegal gold transport, leading to the seizure of illegally smuggled gold many times. According to multiple sources including the BBC, Hong Kong authorities seized 146kg of smuggled gold disguised as machine parts in April, 2024.
But government efforts fail to address gold smuggling many times as there are many loopholes in the steps taken — leading to ineffective outcomes in curbing gold smuggling in different countries. There remains a lack of coordination between different agencies, insufficient resources for monitoring and enforcement and corruption within customs and border control officials in many countries. Though different countries investigate officials having connections with gold smuggling, corruption is less addressed in many countries. Among others, the powerful international networks of organized criminals involved in gold smuggling and the complexity of global supply chains that make it difficult to track and intercept illicit gold shipments are also less addressed.
Curbing gold smuggling completely is almost impossible. But steps need to be strengthened to address gold smuggling in different countries to a tolerable level. Implementing regulations and strict border controls, increasing penalties for offenders, addressing corruption and collaborating with international agencies to track and apprehend smugglers are definitely crucial steps that can dismantle criminal operations and curb gold smuggling in many countries. Effective intervention in international transit routes may help curb gold smuggling to a larger extent. Among others, the emphasis also needs to be given to the promotion of export and import of gold through legal means in different countries.
Amir M Sayem
Chief Editor
Dhaka Opinion Magazine
