Bangladesh Under Threat from Arakan Army’s Expanding Drug Empire
The ongoing conflict, power struggles, and proliferation of armed groups in Myanmar’s Rakhine State have long created serious security risks for Bangladesh. Among these groups, the Arakan Army (AA) has in recent years emerged as the most influential, militarily capable, and territory-controlling organization. Beyond the Rohingya crisis, border provocations, and waves of refugees, the most dangerous aspect of the AA is its deep dependence on drug trafficking and the drug economy.
Bangladesh’s geographic location, porous border areas, coastal and hilly terrains, and a large youth population make the country extremely vulnerable to this drug-driven threat. Recent security analyses warn that if the current trajectory continues, the AA’s drug economy could cause profound social, security, economic, and diplomatic crises in Bangladesh.
This report highlights the nature and expansion of the AA’s drug operations, and their implications for Bangladesh’s future security landscape.
Rise of the Arakan Army and Its Nexus with the Drug Economy
The Arakan Army (AA) is now a central force in the power politics and geopolitics of Myanmar’s Rakhine State. Since its establishment in 2009, the AA has rapidly become one of Myanmar’s most powerful non-state armed actors. In the name of rebellion against the military junta, it has established control over governance, taxation, judicial functions, and administrative structures in many areas of Rakhine.
According to analysts, its primary sources of financing include:
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drug trafficking (yaba and ice/crystal meth),
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informal taxation on oil and gas routes,
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extortion in border trade,
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human trafficking and kidnapping networks,
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arms and ammunition smuggling.
Its cooperation with syndicates from northern Myanmar’s Shan and Kachin States and cross-border crime networks has turned the AA into one of South Asia’s most influential drug cartels. Their military gains against the junta now allow them to control nearly 80% of Rakhine State.
However, behind this military success lies its primary economic engine—drug trafficking, particularly methamphetamine (yaba) and crystal meth. The principal destination for these drugs is neighboring Bangladesh, posing severe threats to its population, economy, and national security.
The AA relies on drug money to maintain its fighters, procure weapons, support logistics, and run its political machinery. Much of the territory it controls falls within the notorious “Black Triangle,” long known as a safe haven for drug production and trafficking. The AA facilitates drug production in these remote areas and collaborates with international crime syndicates.
Due to geographical proximity and high addiction rates, Bangladesh has become the biggest market for these drugs. The Cox’s Bazar border, especially the Naf River and maritime routes, is the main gateway.
The AA’s revenue comes from two main streams:
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Charging international drug groups high commissions for using AA-controlled border routes into Bangladesh;
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Directly trafficking drugs into Bangladesh through well-organized land and maritime networks.
AA’s Role in Drug Trafficking: Historical and Current Realities
The Golden Triangle has historically been one of the world’s largest opium and heroin producers. Over time, production has shifted westward toward Rakhine and northwestern Myanmar, which are now major hubs for yaba production.
Even before the AA’s rise, Rakhine had been infamous for drug trafficking, involving local armed groups, corporate syndicates, and corrupt members of Myanmar’s military. Analysts believe the AA may not always be directly producing the drugs but profits heavily by levying “taxes” or “protection fees” on drug labs in its territory and offering them protection from Myanmar military raids.
This gives the AA a win-win advantage:
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They earn substantial revenue;
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They weaken the junta economically, as many labs are linked to military-run syndicates.
Reports by the UN Office on Drugs and Crime (UNODC) and several human rights organizations confirm the involvement of armed groups in Rakhine’s drug economy. Local sources also verify that the AA collects taxes from yaba labs in its controlled areas.
Myanmar is currently identified as the world’s largest producer of synthetic drugs, and AA protection is considered essential for major drug labs and syndicates to survive. Rakhine—the conduit for trafficking drugs into Bangladesh—now hosts widespread production, expanding into the Rakhine–Chin–Kachin triangle. As the AA’s military dominance grows, its drug operations have become more systematic, organized, and industrialized.
Spread of Drug Terror in Bangladesh
Main gateway: Teknaf–Cox’s Bazar
The primary entry routes for yaba into Bangladesh include:
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Naf River and nearby waters,
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Teknaf–Hnila–Whykong hill routes,
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Maritime routes (Saint Martin–Chattogram coastal line).
These routes offer immense profits for syndicates backed by AA-controlled networks. The AA uses local contacts, hereditary smuggling networks, and corrupt facilitators to maintain these routes.
Use of Rohingya camps as “logistics hubs”
The AA exploits conditions within the Rohingya camps—poverty, unemployment, fear of repatriation, and strategic location—to recruit carriers and maintain the camps as vital drug transit nodes.
Emergence of New Drugs
Beyond yaba, high-purity crystal meth (“ice”) is increasingly entering Bangladesh. The higher financial returns from ice trafficking strengthen the AA further.
Far-Reaching Impacts on Bangladesh
Social and Public Health Crisis
Destruction of youth:
The easy availability of yaba and ice is creating widespread addiction among Bangladesh’s youth, threatening the nation’s future workforce.
Increased crime:
Drug dependency fuels rising theft, mugging, kidnapping, and even murder. Domestic violence and social unrest are also rising.
Pressure on the healthcare system:
Treatment and rehabilitation of addicts put extra strain on public health resources.
Economic Implications
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Capital flight: Huge sums flow illegally into Myanmar, draining Bangladesh’s economy.
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Black money expansion: Drug trafficking creates a large underground economy, disrupting legitimate financial systems.
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Loss of productivity: Addiction destroys workforce efficiency and long-term national growth.
National Security and Border Instability
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Border volatility: Escalating AA activity has destabilized the Bangladesh–Myanmar border. Cross-border firing, abduction (especially of fishermen), and illegal intrusion have increased.
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Crime–Terror Nexus: Drug money strengthens armed groups like the AA, enabling them to buy more weapons—posing long-term security risks for Bangladesh.
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Use of Rohingya camps: Drug transportation through the camps worsens security and raises conflict risks with host communities.
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Expansion into hill tracts: Reports suggest links between AA and some armed factions in Chittagong Hill Tracts, complicating internal security.
Diplomatic Pressure and Reputation Risks
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Bangladesh may be labeled a “drug transit nation.”
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Pressure from the US, EU, and regional powers could intensify.
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Border control failures may strain diplomatic relations.
Preventive Measures and Challenges
Preventive Measures by Bangladesh
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Boosting border surveillance through BGB and Coast Guard.
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Conducting regular anti-drug operations and seizing large quantities of drugs.
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Maintaining communication with Myanmar—though meaningful dialogue remains difficult.
Key Challenges
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Difficult terrain along the border.
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Vast AA-controlled regions inside Myanmar make source elimination nearly impossible.
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Collusion of local Bangladeshi syndicates.
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Rohingya camps enabling trafficking networks.
What Bangladesh Must Do
The AA’s drug empire threatens the very foundations of Bangladesh’s social, economic, and national security stability. If not addressed urgently, Bangladesh may face a long-term geopolitical and security crisis within the next decade.
Recommendations
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Enhanced border protection: Use drones, advanced radars, and modern surveillance systems along the Naf River and coastal routes.
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International cooperation: Strengthen partnerships with ASEAN states, India, and China to dismantle AA-linked networks.
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Internal crackdown: Apply zero-tolerance measures against domestic drug lords; disrupt their financial networks.
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Awareness and rehabilitation: Launch widespread campaigns and provide rehabilitation opportunities for youth.
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Strict control in Rohingya camps: Crack down on drug-linked individuals and restore law and order.
