Superdollar

From Free net encyclopedia

For the economics term, see Superdollar (economics).

This article documents a current event.
Information may change rapidly as the event progresses.

A superdollar is an almost perfect counterfeit of a United States banknote. The United States government has accused North Korea of distributing them for two reasons: as a source of income and to undermine the US economy. They have been circulating since the late 1980s.

North Korea calls the accusations "sheer lies" and accuses the US of using the issue as a pretext to war.[1][2] Though US officials have publicly accused North Korea, no North Korean citizens have been charged nor have any official indictments named North Korea or North Korean citizens in superdollar charges. Recently, North Korea accused the CIA of manufacturing the superdollar themselves to undermine the North Korean Government.

1 The notes
- 1.1 Distribution method
2 Enforcement efforts
3 See also
4 External links

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The notes

The notes are made with the highest quality ink and paper, designed to recreate the various security features of United States currency, such as the red and blue security fibers; the security thread; and the watermark; even experts need to study a note intensively before determining if it is a forgery. Officially they are known as the PN-14342 family, after the classification system the Secret Service uses. The notes are printed using the intaglio and typographic printing processes.

Several North Korean defectors have described the operation. They say the factory where the notes are printed is located in the city of Pyeongseong. One defector had taken the notes to experts in the South Korean intelligence agency, who didn't believe that they were fakes.[3] The San Francisco Chronicle interviewed a North Korean chemist who described the operation; insisting on anonynimity, he spoke about the technical details of the process as well as the distribution method, which he said was through North Korean diplomats and international crime syndicates.

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Distribution method

The notes are believed to be spread in two ways:

North Korean diplomats almost all travel through Moscow on their way to other destinations. At the North Korean embassy they receive dollars for their expenses. The forgeries are intermingled with real dollars in about a 1 to 1 ratio. Most of the diplomats themselves do not know that they are being given fakes.

The British criminal underworld. The chief of staff of the Official IRA, Seán Garland, was followed and seen traveling to Moscow and visiting the North Korean embassy along with some ex-KGB officers. Seán Garland would then, with the help of some associate couriers, move this money to Dublin and Birmingham where the notes would be exchanged for pounds or authentic dollars.[4][5] His scheme, involving several international crime syndicates and transactions worth millions of dollars, was uncovered in "Operation Mali" and began with a tip-off about a man named Alan Jones.[6] Garland was arrested in Belfast (Northern Ireland) but fled South to the Republic of Ireland after being released for medical leave; Ireland does not have an extradition treaty with the U.S. He has said he will surrender only if he will be tried by jury in Ireland.

Before investigators settled on North Korea as the source of the notes, various theories of their origin circulated. Iran was an early suspect[7], and in 2000 some laid the blame on Syria - "The Bekaa Valley has become one of the main distribution sources, if not production points, of the 'supernote' - counterfeit US currency so well done that it is impossible to detect." [8]

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Enforcement efforts

Since 2004 the United States has moved against North Korea in an attempt to end the distribution of supernotes. It has investigated the Bank of China, Banco Delta Asia, and Seng Heng Bank.[9][10] The US eventually prohibited Americans from banking with Banco Delta Asia.[11][12]. It is threatening Noth Korea with sanctions, though it says those sanctions will be a separate issue from the nuclear one.

Two sting operations, dubbed "Operation Smoking Dragon" and "Operation Royal Charm", United States agents arrested at least 87 people and charges that included smuggling superdollars.

China and South Korea were initially reluctant to believe that North Korea was the source of the notes. On January 11, 2006, China announced that its own investigation had reached the same conclusion, and says it believes North Korea cannot escape culpability and will try to convince it to end the activity. South Korea is attempting to play a middle role, encouraging all parties to reach an acceptable conclusion without acrimony.[13] In a major meeting on January 22, 2006, the US laid out its evidence and tried to persuade the Seoul government to take a harder line on the issue and impose similar financial sanctions, but was rebuffed.[14][15] South Korea prefers to place blame on North Korean organizations rather than the government, believing that this change in rhetoric can mollify North Korea and be conducive to a resumption of the Six-party talks. Some believe that the South's position is hurting its alliance with the US and could relegate it to a minor role in the North Korea issue.[16]

On February 2, 2006, banks in Japan voluntarily enforced sanctions on Banco Delta Asia identical to those imposed by the United States.[17]

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