Forensics Journal - Stevenson University 2013 | Page 15

STEVENSON UNIVERSITY

Not So Funny Funny-Money: The Threat of
North Korean Counterfeiting of U.S. Currency
Eric W. Corbett
The United States (U.S.) faces a significant threat to its currency:
the counterfeit Supernote. Although high-quality counterfeit bills
are nothing new, Supernotes are not ordinary counterfeits. They
are printed on the same high-quality, cotton-linen blend paper that
the U.S. government uses. The printing also engraves the bills and
utilizes special, color-shifting ink that is generally only sold to governments (Mihm; Engber). U.S. law enforcement and intelligence
agencies have consistently identified one culprit believed to be behind
the majority of the Supernote counterfeits: North Korea. Investigations have identified complex counterfeiting operations and a web
of complicated transactions to integrate the bills (Rose, 4). The use
of forensic financial investigations to support actions, such as asset
forfeiture in criminal cases or the use of financial sanctions, is an
effective method to help neutralize the money-laundering component
of this crime. The counterfeiters must engage in financial transactions
to effectively trade counterfeit currency for items of value. Disrupting
the financial aspects of the scheme reduces their ability to profit from
counterfeiting and leads to a reduction in the criminal activity.

EVIDENCE OF NORTH KOREAN COUNTERFEITING
“The North Koreans have denied that they are engaged in the
distribution and manufacture of counterfeits, but the evidence is
overwhelming that they are. There’s no question of North Korea’s
involvement” stated Daniel Glaser, Deputy Assistant Treasury Secretary for Terrorist Financing and Financial Crimes (Mihm). Glaser’s
statement is bolstered by anecdotal evidence supporting North Korea’s
capabilities. In 1990, North Korea purchased several high-speed,
intaglio presses – the same kind that could be used to produce bank
notes (Tkacik). As the U.S. changed its bank notes in 1996, it
secured the sole rights to a green/black shade of OVI made by Swiss
company SICPA. That same year, North Korea purchased a green/
magenta shade (very close to the shade used by the U.S.) of OVI
from SICPA; North Korean paper currency doesn’t use OVI (Mihm).
According to Syung Je Park, Director of the Asia Strategy Institute,
the North Korean government obtained enough Fourdrinier paper
in 2007 to print $2 billion dollars worth of counterfeit Supernotes
(Rose, 3).

UNDERSTANDING SUPERNOTES

There is hard evidence of direct North Korean involvement with the
production of counterfeit U.S. currency. In 1994