Gold attractive vehicle for money laundering: Directorate of Revenue Intelligence

 Manipur, Mizoram inlets for smuggled gold to India

STAFF REPORTER

GUWAHATI: Manipur and Mizoram are the two strategic states along the Indo-Myanmar Border (IMB) serving as inlets in connection with gold smuggling to India.

The investigation of gold smuggling cases booked by the DRI (Directorate of Revenue Intelligence) suggests that Myanmar has emerged as one of the major transit points for gold smuggled into India. "Gold has proved to be an attractive vehicle for money laundering for criminals as it remains stable in value, is easily transformable and inter-changeable for other assets," DRI's smuggling in India report of 2021-22 said.

According to DRI sources, the trends of gold smuggling and seizure data show that 73 per cent of the caught smuggled gold comes to India through Myanmar and Bangladesh. Many international reports suggest that smuggled gold reaches Myanmar through China at Muse, one of the bordering cities on the Myanmar-China border. Gold enters Myanmar from China, primarily through the border towns of Ruili on the China side and Muse in the Shan State of North Eastern Myanmar. Ruili is China's gateway to Myanmar.

Reports also suggest that smugglers transport smuggled gold from Muse through the Mandalay-Kalewa route to places at the Indo-Myanmar Border to India. The existence of scattered and defunct gold mines in Myanmar and possible unaccounted mining of gold at many locations favours the gold-smuggling syndicate. Considering the traditional socio-religious relation among the people residing at the borders of India and Myanmar, both countries have adopted the long, densely forested, hilly and inaccessible border with Myanmar in Manipur, Mizoram and Nagaland, DRI reports said.

Two flagged routes for smuggling gold from Myanmar into India are Muse Mandalay-Kalewa-Tedim-Zokhawthar and Muse-Mandalay-Kalewa-Tamu Namphalong-Moreh. While the former route connects to Mizoram, the latter is open to Manipur.

The DRI seized 833 kg of smuggled gold during 2021-22.

The Free Movement Regime permits the local population along the border to travel 16 km into the other country without a passport or visa. The gold smuggling syndicates also target the people living in the border areas for carrying smuggled gold.

Despite being deficient in gold as a natural resource, India's gold refining landscape has drastically widened in the last decade. Several refineries have come up in the country.

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