Title: Bhutan’s Hidden Criminal Underworld: A Look into Human Trafficking, Illicit Trade, Environmental Crimes, and Financial Fraud

Introduction

Amidst the serene mountain views and rich cultural heritage of Bhutan, a hidden criminal underworld is thriving. This article explores the significant challenges Bhutan faces in combating human trafficking, illicit trade, environmental crimes, and financial fraud.

Human Trafficking: A Persistent Problem

Bhutan is a source, destination, and transit country for human trafficking.

• Vulnerable Population: Children, particularly those under 14, can legally work making them highly vulnerable to domestic servitude, forced labor, and sexual exploitation.
• Foreign and Domestic Victims: Human traffickers exploit both foreign and domestic victims in Bhutan and send Bhutanese women to countries like Iraq and Oman for forced labor.
• Forced Labor during COVID-19: Unregistered foreign recruitment agencies operating through social media have fueled a surge in forced labor cases during the pandemic.

Illicit Trade: The Black Market Thrives

Although there are no significant signs of arms trafficking in Bhutan, the country does host a market for counterfeit goods.

• Counterfeit Goods: There is a prevalent illicit trade in excise goods, primarily tobacco products.
• Significant Demand: Demand and consumer consumption fuel the black market.

Environmental Crimes: Conservation Efforts Struggle

Illegal logging and tree smuggling, as well as the illegal wildlife trade and caterpillar fungus market, pose severe environmental threats.

• Illegal Logging: Collusion between local tribes, India’s timber mafia, and corrupt Bhutanese officials results in widespread illicit logging.
• Endangered Species: Bhutan is a source and transit country for lucrative illegal wildlife trade.
• Smuggling: The porous Bhutan-India border is exploited to traffic gold and other valuable items.

Drugs: A Minor but Present Issue

Although drug use and trafficking in Bhutan are not extensive, isolated incidents have been reported.

• Heroin and Opium: Heroin and opium are present, particularly in urban areas.
• Origin of Drugs: Drugs are believed to originate from Myanmar through India with an increase following the 2021 coup.
• Minor Consumption and Sales: Minor consumption and sales have been observed within the tourism industry and elite social circles.

Cyber Crimes: Stealthy and Growing

Bhutan’s digital landscape has seen an uptick in cybercrime.

• Common Cybercrimes: Ransomware attacks, website defacements, and compromised social media accounts are becoming increasingly common.

Financial Crimes: A Growing Threat

Financial crimes increase with the growing use of digital platforms and tourism industry cash flows.

• Public Sector Corruption: Corruption is relatively low but presents instances of favoritism in public procurement.
• Private Sector Corruption: Private sector financial corruption is characterized by nepotism and favoritism, with risks extending to the tourism industry and infrastructure development.
• Cyber-enabled Financial Crimes: Phishing activities and other cybercrimes pose growing concerns.

Criminal Actors: Local and Foreign

Domestic and foreign criminal networks are involved in illicit activities.

• Organized Crime: Illegal activities include gold smuggling, drug trafficking, human trafficking, timber smuggling, and wildlife poaching.

Leadership and Governance: A Work in Progress

Bhutan has made progress in improving governance and politics but addressing organized crime, particularly human trafficking, remains a challenge.

• Government Efforts: The government actively combats corruption and monitors state spending but progress has stalled.
• Increased Transparency: Increased transparency and decentralized governance are leading to increased accountability in state agencies and organizations.
• Continued Efforts: Continued efforts are needed to address the root causes of organized crime in Bhutan.