Financial Crime World

Organized Crime and Related Issues in Bhutan: A Report Overview

Bhutan, a small country nestled between India and China, faces various challenges related to organized crime and its impact on the nation. This report highlights key aspects of these issues, including drug trade, corruption, judicial system, prison system, border security, economic environment, and civil society.

Drug Trade: A Major Concern

Bhutan primarily serves as a transit country for drugs trafficked between India and China, with some local consumption. The government has implemented laws to combat drug trafficking and use, but more work is needed to address addiction.

  • Government Response: The government has taken steps to prevent the smuggling of illicit substances into Bhutan.
  • Local Consumption: Despite efforts to curb addiction, there are still concerns about local consumption of drugs.

Corruption: A Limited Issue

While there are no widespread reports of corruption among law enforcement officials or judges, human rights violations against external ethnic populations have been reported.

  • Limited Incidence: Corruption is not a major concern in Bhutan.
  • Human Rights Abuses: However, human rights abuses have been reported, particularly against ethnically Nepali Bhutanese citizens-turned-refugees.

Judicial System: Challenges Ahead

The judicial system faces challenges, including inconsistent court judgments, lack of access to legal representation for defendants, and transparency issues.

  • Inconsistent Judgments: Court decisions are not always consistent.
  • Access to Representation: Defendants often struggle to find legal representation.
  • Transparency Issues: The judicial process can be opaque.

Prison System: A Positive Example

Bhutan’s prison system meets international standards, with no evidence of organized crime infiltrating the system.

  • International Standards: Bhutan’s prisons adhere to global norms.
  • Organized Crime-Free: There is no indication of organized crime within the prison system.

Border Security: A Fragile State

Bhutan’s territorial integrity is relatively stable, but the conflict between China and India at the Doklam pass highlights the fragility of its borders, especially with China-Tibet.

  • Stable Borders: Bhutan’s borders are generally secure.
  • Conflicts Nearby: However, tensions between China and India in Doklam pose a risk to border stability.

Economic Environment: Concerns Remain

Bhutan has measures in place to combat money laundering and terrorism financing, but concerns remain about cash flow control related to tourism and natural resources.

  • Anti-Money Laundering: Bhutan has laws to prevent money laundering.
  • Cash Flow Control: However, there are still concerns about the management of cash flows in certain sectors.

Civil Society: A Crucial Role

Bhutan has made strides in improving victim support, but cases of human rights abuses against ethnically Nepali Bhutanese citizens-turned-refugees are still covered up.

  • Victim Support: Civil society organizations provide vital assistance to victims.
  • Human Rights Abuses: However, human rights abuses continue to occur.