Tk 91,250cr gold, diamond smuggled in a year: BAJUS

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Special Correspondent :
Bangladesh is being used as a safe route for smuggling gold to neighbouring countries, with over Tk 91,250 crore worth of gold and diamonds being smuggled out annually, according to the Bangladesh Jeweller’s Association (BAJUS).

The alarming revelation was made during a press conference at the BAJUS office in Bashundhara City Shopping Complex on Monday.

The press conference was organised to demand stringent operations by law enforcement agencies, including customs, to stop money laundering and bring both local and foreign smuggling syndicates to justice.

BAJUS leaders highlighted that the country’s jewellery industry is already facing various crises and warned that if these gold smugglers are not apprehended, the sector will face further challenges in the near future.

Among those present at the press conference were BAJUS advisor Ruhul Amin Russell, vice president of the BA
BAJUS executive committee and chairman of the BAJUS standing committee on anti-smuggling and law enforcement Ripnul Hasan, Vice President Masudur Rahman, and Executive Committee Member and BAJUS Standing Committee Chairman Anwar Hossain.

In a written statement, Ripnul Hasan disclosed that 30 districts of Bangladesh share borders with India, and six districts in the Khulna division—Meherpur, Kushtia, Chuadanga, Jhenaidah, Jessore, and Satkhira—have become safe routes for gold smuggling.

A significant portion of the gold smuggled into India passes through these districts.

BAJUS estimates that illegal gold ornaments, including gold bars, second-hand jewellery, and diamond ornaments worth at least Tk 250 crore, are being smuggled into Bangladesh every day. This rampant smuggling is facilitated through illegal channels like hundi, enabling smugglers to launder enormous amounts of money abroad.

The illegal smuggling of gold and diamonds via water, land, and air routes is a major concern in Bangladesh, exploiting the hard-earned foreign currency of migrant workers. At the end of the year, this currency stands at approximately Tk 91,250 crores.

Ripnul Hasan highlighted that gold and gold ornaments worth Tk 220 crore and diamonds worth Tk 30 crore enter the country daily. Annually, this amounts to Tk 80,300 crore in gold and Tk 10,950 crore in diamonds smuggled into Bangladesh.

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This smuggling operation syphons off money abroad through networks of gold and diamond smugglers using the hundi system, resulting in significant losses in government remittances.

BAJUS leaders are urging the government to take decisive action to curb this illegal trade amidst the ongoing dollar crisis.

Data from the Bangladesh Financial Intelligence Unit suggests that if gold were imported legally, Bangladesh Bank reserves would have increased by at least 22 billion dollars, and the government could have collected about Tk 10,000 crores in revenue.

The Armed Police Battalion (APBn) has seized 131.110 kg of gold bars and ornaments from Hazrat Shahjalal International Airport over the past few years, with a market value exceeding Tk 130.47 crore.

Meanwhile, Dhaka Customs House reported that 2.775 metric tonnes of gold were imported under baggage rules in 2020, 25.689 metric tonnes in 2021, 35.733 metric tonnes in 2022, and 31.468 metric tonnes in 2023.

Customs data further shows that 2.160 kg of diamonds were imported in four consignments for industrial use from 2020 to 2022, with no diamond ornaments imported during this period.

Notably, 87% of all diamonds imported over the last 19 years came from India, with a significant portion believed to be smuggled due to ease of transport.

The Border Guard Bangladesh (BGB) has intercepted several smuggling attempts from India, including the seizure of 144 diamond ornaments worth Tk 1.75 crore at the Satkhira border in 2021 and diamonds worth Tk 70 lakh from border areas in 2018.

BAJUS leaders attribute the illegal import of diamonds to high import taxes, leading to tax evasion. They estimate the diamond market in Bangladesh to be about Tk 11,000 crore, predominantly reliant on smuggling.

The BAJUS leadership is calling for robust government intervention and stringent measures by law enforcement agencies to identify and apprehend those involved in gold and diamond smuggling.