Bangladesh has increasingly become a major transit point for international gold smuggling, with consignments originating from the Middle East being trafficked through Dhaka and ultimately reaching India. According to investigations by the Criminal Investigation Department (CID), scrap gold is collected from passengers arriving from Middle Eastern countries and brought to Dhaka’s Tantibazar, where it is melted and converted into gold bars before being smuggled across the Satkhira border into India.
The illegal transactions are often conducted through the informal hundi system and deposited into bank accounts registered under shell companies, allowing smugglers to launder money and accumulate wealth without leaving a trace. Influential local syndicates are believed to control the smuggling routes, exploiting weaknesses in financial oversight and border security.
Key Players and Modus Operandi: CID reports indicate that several syndicates based around Tantibazar have been operating for years, carrying out large financial transactions through accounts opened under shell companies. Among the implicated entities are Inox Fashion, Bhai Bhai Enterprise, Zaman Enterprise, and Noha Enterprise. One of the central figures identified is Manindra Nath Biswas, a Tantibazar businessman who collects scrap gold from passengers arriving from
the Middle East. According to CID investigations, Biswas melts the scrap into gold bars and traffics them to India. Payments for these consignments are sometimes made through hundi, and in certain cases, gold and cash are exchanged for weapons or drugs.
CID Special Superintendent of Police Jasim Uddin Khan told The Daily Industry, “Manindra Nath Biswas opened bank accounts under several shell companies and conducted transactions worth BDT 6.08 billion. By transferring money and converting it through hundi, he engaged in luxury spending, money laundering, and purchased assets under anonymous ownership. These are clearly punishable offenses under the Money Laundering Prevention Act.”
Biswas is not alone. At least two dozen traders operate similar illegal gold channels. Another key figure, Shyam Ghosh, started as an employee in his father’s hotel in Dhaka’s Sutrapur area before entering gold trading. Investigations reveal that Ghosh amassed substantial wealth through illegally obtained gold, purchasing multiple apartments, shops, and restaurants in Dhaka while concealing the sources of his income. Among his assets are three shops in Jamuna Future Park, a restaurant called Indian Domestic Spice, and a flat in Babuli Star City, in addition to shared ownership in other residential properties and a jewelry store in Bashundhara City.
Tapas Malakar, another Tantibazar-based trader, has similarly been accused of smuggling gold to India. He allegedly used bank accounts under shell companies, including Joya Fashion, a small shop selling Indian clothing in Bashundhara City, to launder proceeds from smuggling. The CID’s Financial Crime Unit has placed Malakar and his wife, Monti Malakar, under surveillance, revealing their consistent involvement in illegal gold trafficking. Despite owning multiple properties and businesses, Tapas Malakar reportedly does not have a valid tax file, while his wife’s is outdated. Speaking to The Daily Industry, Tapas Malakar defended himself: “I have a gold business in Tantibazar. But there is no bank account linked to that business. The money from there is deposited into Joya Fashion’s bank account. Besides, at different times, the bank account of Joya Fashion has also been used for transactions by neighboring businesses.”
CID Investigation and Legal Action: CID’s Special Superintendent Mohammad Abul Kalam Azad is overseeing the ongoing investigation. He told The Daily Industry, “The probe into Joya Fashion is in its final stage. Action has already been taken against Shyam Ghosh, and we have information on several other Tantibazar traders involved in smuggling. Legal measures will follow after the investigation concludes.”
The smuggling network has exploited Bangladesh’s weak border security. According to Indian media, Bangladesh and Myanmar have become major channels for illegal gold flowing into India, where annual demand reaches 800,000 kilograms. An estimated 80,000 to 90,000 kilograms of gold are trafficked into India each year, incentivized by high import duties and the potential for significant profits.
Seizures and Law Enforcement Efforts: Border Guard Bangladesh (BGB) and the Customs Intelligence and Investigation Directorate have actively seized smuggled gold. Over the past five years, BGB confiscated around 725 kilograms along borders, while Customs Intelligence seized 840 kilograms at international airports, including 436 kilograms at Hazrat Shahjalal International Airport (HSIA) alone. Combined, these agencies have seized 1,164 kilograms over the past two years, although officials believe actual smuggling volumes far exceed seizures.
Lt. Col. SM Shafiqur Rahman, BGB’s Director of Operations, told The Daily Industry, “BGB has been taking a strict approach to prevent all types of smuggling at the borders, including gold.
We conduct additional patrols in high-risk areas and maintain continuous intelligence surveillance. In the past year, we recovered 122.65 kilograms of gold worth BDT 1.95 billion and handed over 80 smugglers to the police.”
Market Dynamics and Expert Opinions: The global gold market has become volatile due to U.S.-China tensions, pushing prices sharply higher. In Bangladesh, the current price of gold is approximately BDT 200,000 per bhori (11.664 grams). While higher prices have curtailed domestic consumption, they have paradoxically increased demand for smuggling, as traffickers seek to capitalize on cross-border arbitrage opportunities.
Experts warn that unless smuggling is curbed, Bangladesh could become entrenched in the informal border economy. SM Nazer Hossain, Vice President of the Consumers Association of Bangladesh, commented to The Daily Industry, “The expansion of smuggling routes undermines both national revenue collection and financial transparency. It also empowers criminal networks, making regulation and oversight much more challenging.”
Dr. Rashidul Islam, an economist specializing in trade and financial security, noted, “Illegal gold trading affects not only customs revenue but also the stability of domestic financial markets. Large unreported transactions through shell companies distort economic data and make anti-money laundering enforcement more difficult.”
Industry Response: The Bangladesh Jewellers’ Association (BAJUS) has denied any involvement of its members in smuggling activities. Masudur Rahman, Chairman of BAJUS’ Standing Committee on Pricing and Price Monitoring, told The Daily Industry, “We do not have any information linking our jewelers to these cases. Our work focuses on retail jewelry issues, pricing, and market standards.”
Nevertheless, enforcement authorities emphasize the need for coordinated action. The CID, BGB, and Customs Intelligence continue to collaborate to dismantle smuggling networks and track the illicit flow of gold, which is increasingly intertwined with money laundering, asset concealment, and other criminal activities.
Looking Forward: As investigations progress, authorities stress the importance of stronger border management, enhanced financial monitoring, and stricter enforcement of anti-money laundering laws. With cross-border gold trafficking showing no signs of slowing, experts believe that a combination of intelligence-driven policing and regulatory reforms is essential to combat the lucrative illegal trade. The Tantibazar smuggling network highlights how organized groups exploit systemic vulnerabilities. Analysts warn that unless decisive action is taken, the informal economy centered on smuggling could continue to grow, undermining both national revenue and the integrity of Bangladesh’s financial system.
