Transnational Crime
Agenda
 Narcotics
 TIP (Trafficking In Persons)
 Counterfeiting US Dollars
Narcodics
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What:
 “Bingdu” (aka meth or ice).
 Cheap to make and hard to trace
 Defectors have reported that ¼ - ½ of the population is using due to the fact that the people
are using it as a replacement for medicine
Where:
 NE China is primary
 Chinese gov avoids acknowledgement of problem, as it would touch on “the good
relationship” and refers to any trafficking from N Korea as from an “unidentified overseas
country”.
 Japan, S Korea, Australia
Who:
 State Sponsored or just run-of-the-mill drug dealers?
 Gov officials have been arrested for smuggling drugs
Why:
 Assist in gov financing of nuclear program
 Easy money
To what extent:
 Are there serious behind-the-scenes discussions or cooperative moves going on between the two
governments, or does Beijing ignore the issue so as to not antagonize the North Koreans?
Though meth may not be the primary issue in the Sino-DPRK relationship, can China truly
afford the added headache of dealing with a rising tide of drug addicts as it tries to maintain
economic momentum and social stability?
Trafficking In Persons
 What:
 Forced labor, at home and abroad
 Sex trafficking
 Where:
 Recruited laborers to work abroad under bilateral contracts with foreign
governments, including in Russia; Africa, Central and Eastern Europe, East and
Southeast Asia, including especially Mongolia, and the Middle East.
 Workers' salaries are deposited into accounts controlled by the North Korean
government, which keeps most of the money, claiming fees for various "voluntary"
contributions to government endeavors.
 Researchers estimate that thousands of undocumented North Koreans currently live
in northeast China, and as many as 70 percent of them are women. There is no
reliable information on how many of these North Koreans have been trafficked, but
their status in China as illegal economic migrants who may be deported to North
Korea makes them particularly vulnerable to trafficking.
 Trafficking networks of Korean-Chinese and North Koreans (usually men) operate
along the China-North Korea border, reportedly working with border guards from
both countries to recruit women for marriage or prostitution in China. North Korean
women often pass through many hands, with multiple brokers involved in their
trafficking.
Trafficking In Persons
 Who:
 State Sponsored, part of an established system of
political repression
 The government contributed to the human trafficking
problem through its ban on emigration, its failure to
address its poor economic and food situation, and
through its forced labor camps, where North Koreans
live in conditions of servitude, receiving little food and
little, if any, medical care.
 Why:
 Assist in gov financing of nuclear program
Counterfeiting US Dollars
 Rough estimate: The North Korean government
through “Office 39” (North Korean govt sponsored
crime syndicate), had printed and circulated
approximately 45-50 million US Dollars
 Note: North Korea has also been accused of
counterfeiting cigarettes, pharmaceuticals as well as
other items by former National Intelligence Director
(NIC) John Negroponte in testimony before Congress
North Korean Govt Counterfeit
 Infuse into market: Sundry methods are used to infuse
the counterfeit $100 (Supernote) and $50 dollar notes
into the world economy:
 Diplomats and N Korean business executives have been
caught and charged with bringing large amounts of
money into banks supportive of North Korea: Bank of
China, Banco Delta Asia, and Seng Hung Bank
 Many businesses use illicit currency freely in South and
North Korea
 Smuggling contraband into many nations
 North Korean Agents in USA spend freely
Counterfeiting US Dollars
 Act of War?
 US dollars made by Bureau of Engraving and Printing
 Direct attack on US National Asset
 Undermines US currency and damages economy
 Began counterfeiting US dollars in late 1980s
 Violation of USA Patriot Act section 311
 USA and other countries will not conduct business with
North Korean organizations
 Partnership strains: South Korea will not confront
North Korea, détente is centerpiece of interaction
Action to Combat Counterfeiting
 The Issue of counterfeiting is surfaced at the “6 Party
Talks” as a part of PSI (Proliferation Security
Incentive), ref.: Nuclear issue engagements
 USA has two-prong approach to address problem: 1.
Law Enforcement (approximately 70 arrests have been
made) and 2. Political pressure
 International community see North Korea as a
“Criminal State” Note: does not seem to affect DPRK