Number: RL33324
Title: North Korean Counterfeiting of U.S. Currency
Authors: Dick K. Nanto, Foreign Affairs, Defense, and Trade Division 
Abstract: The United States has accused the Democratic People's Republic of Korea (DPRK or North Korea) of counterfeiting U.S. $100 Federal Reserve notes (supernotes) and passing them off in various countries. This is one of several illicit activities by North Korea apparently done to generate foreign exchange that is used to purchase imports or finance government activities abroad. The purpose of this report is to provide a summary of what is known from open sources on the DPRK's alleged counterfeiting of U.S. currency, examine North Korean motives and methods, and discuss U.S. interests and policy options. Although Pyongyang denies complicity in any counterfeiting operation, estimates are that at least $45 million in such supernotes of North Korean origin are in circulation and that the country has earned from $15 to $25 million per year over several years from counterfeiting. South Korean intelligence has corroborated information on past production of forged currency - at least until 1998 - and several U.S. court indictments indicate that certain individuals have been accused of distributing such forged currency more recently.
Pages: 22
Date: April 16, 2008