Illicit Gain: Gold Smuggling Political-Criminal Nexus in Nepal

Arrested in 2003 for a number of earlier murders, Charles Sobhraj served 19 years before being extradited to France in 2022. Ironically, though infamous for his killings, he became equally renowned for a more glaring claim: "I can easily smuggle an elephant through Kathmandu Airport."[1]

Hyperbole or reality? The fact is Tribhuvan Airport in Kathmandu was and remains a center for illicit gain involving tons of illegal gold, illegal foreign exchange, human trafficking, wildlife poaching, and large quantities of drugs. Of these, gold smuggling is now the crime which seems invariably in the headlines. For it has of late become intertwined with politics and thus national security.

In a huge, robust economy such as the United States, gold is not a controlled substance. In smaller markets such as Nepal, however, regulation is necessary lest the exploitation of both licit and illicit gaps having a devastating impact. Regardless, the profits to be made have created a black hole of criminality.

Increasing incidents of gold smuggling in Nepal highlight three points. First, the weak security system at Kathmandu Airport. Second, the growth of organized crime’s involvement in gold smuggling. Third, the involvement of Nepali political leadership and the bureaucracy.

All That Glitters

It is no exaggeration to say that Nepal is a breeding ground for organized crime, but the acceleration of its involvement in gold smuggling has been impressive. This includes a dramatic increas...