Forensics Journal - Stevenson University 2013 | Page 22

FORENSICS JOURNAL

forfeiture, dismantle the machinery of a scheme and take the profits
away from criminals, in cases involving the production and distribution of Supernotes. The use of financial forensic investigations
to directly impact North Korean production of Supernotes is not
quite as obvious; however, it clearly provided significant assistance.
Rather than directly attacking the production per se, IAI and related
operations utilized financial forensic investigations to dismantle the
components necessary to facilitate the counterfeiting scheme. Front
companies were identified and eliminated via tax violations and
money laundering charges. Complicit financial institutions were
identified, investigated, and sanctioned, in some cases destroying the
institutions or seriously hampering their ability to conduct business.
However effective these measures were, it was unfortunate that the
U.S. did not continue to pursue this course of action– the changing
political climate in the U.S. led to a reversal of course and clearly lessened the impact on North Korea. David Asher described the actions
taken against Banco Delta Asia as the “…financial shot heard round
the world for North Korea…bankers globally were sent a wake-up
call and North Korea quickly lost ready access to hundreds of millions
of dollars in bank accounts” (Asher, 2011, 45). The use of forensic
financial investigations to disrupt Supernote production and distribution is clear. Forensic financial investigations can be utilized to successfully combat this and other criminal activity. Gerald McDowell/
AFMLS Chief at the Justice Department further states: “A careful
financial investigation can lead from the street dealer to the kingpins.
By following the trail of the money and other assets, your financial
investigation can reveal the complex structure of major criminal organizations, and it can lead to seizures and forfeitures that will cripple
those organizations” (U.S., Asset Forfeiture).

Engber, Daniel. “What are Supernotes? The Best Fake Money that
Money Can Buy.” Slate. 23 Aug. 2005. Web. 28 Jan. 2012.
“Extradition Treaties.” United States Department of State. Treaty
Affairs. Web. 24 Feb. 2012.
“Definition: Forensic.” Merriam-Webster Online Dictionary. Web. 17
Feb. 2012.
“Fact Sheet: Overview of Section 311 of the USA PATRIOT Act.”
United States Treasury Department. 10 Feb. 2011. Web. 24 Feb. 2012.
“Financial Fraud Institute.” Federal Law Enforcement Training Center
(FLETC). Department of Homeland Security – FLETC. Training,
Programs, Investigative Operations. Web. 17 Feb. 2012.
Lague, David and Greenlees, Donald. “Squeeze on Banco Delta Asia
hit North Korea Where it Hurt.” New York Times – Asia Pacific. 18
Jan. 2007 Web. 28 Jan. 2012.
Mihm, Steven. “No Ordinary Counterfeit.” New York Times. 23 July
2006. Web. 01 Feb. 2012.
Nanto, Dick. “North Korean Counterfeiting of U.S. Currency.” CRS
Report for Congress. Congressional Research Service. 12 Jun. 2009.
Web. 28 Jan. 2012.
Perl, Raphael and Nanto, Dick. “North Korean Counterfeiting of
U.S. Currency.” CRS Report for Congress. Congressional Research
Service. 17 Jan. 2007. Web. 26 Feb. 2012.
---. “North Korean Crime-for-Profit Activities.” CRS Report for
Congress. Congressional Research Service. 16 Feb. 2007. Web. 01
Feb. 2012.

REFERENCES
“About, Organizational Structure, OFAC.” United States Treasury
Department. 10 Feb. 2011. Web. 24 Feb. 2012.

Pogatchnik, Shawn. “Irish May Try IRA Veteran over North Korean
Scam.” Associated Press. wtop.com. 27 Jan. 2012. Web. 01 Mar. 2012.

“An Introduction to FATF and its Work.” Financial Action Task
Force/Groupe d’Action Financière. About the FATF. 2010. Web. 26
Feb. 2012.

“OFAC Sanctions Matrix.” BankersOnline.com. 14 Feb. 2012. Web.
26 Feb. 2012.

Asher, David. “Pressuring Kim Jong Il: The North Korean Illicit
Activities Initiative, 2001- 2006.” Pressure: Coercive Economic Statecraft and U.S. National Security. Center for a New American Security.
Jan 2011. Web. 13 Feb. 2012.

“Operation Smoking Dragon.” News and Stories. Federal Bureau of
Investigation. 05 July 2011. Web. 26 Feb. 2012.
Rose, David. “North Korea’s Dollar Store.” Vanity Fair. 5 August
2009. Web. 28 Jan. 2012.

--- “The North Korean Criminal State, its Ties to Organized Crime,
and the Possibility of WMD Proliferation.” Nautilus. Policy, Forum
Archive, 15 Nov. 2005. Web. 10 Feb. 2012.

“The Super Dollar.” BBC.co.uk. Panorama, BBC-1. 20 Jun. 2004.
Web. 28 Feb. 2012. Transcript.

“Bank Secrecy Act.” Financial Crimes Enforcement Network –
Department of the Treasury. Statutes & Regulations, Bank Secrecy
Act. Web. 28 Feb. 2012.

Tkacik Jr., John. “Is China Complicit in North Korean Currency
Counterfeiting?” The Heritage Foundation. 20 April 2006. Web. 08
Feb. 2012.

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