Subtitles section Play video
-
The year was 2004 and a container ship called the “Ever Unique” made its last stop at
-
the port of Newark in the U.S. after leaving from China.
-
On this particular day, F.B.I. and Secret Service agents were lying in wait, believing
-
that some containers on this ship might be carrying something of interest.
-
They were right, but what they'd find was more than they had bargained for.
-
Under boxes filled with an array of plastic toys they discovered secret compartments that
-
contained hard cash, except the money was only in $100 bills.
-
The notes they beheld were flawless, faultless, and to anyone but an expert gifted with the
-
right technology, those notes were just as good as the real thing.
-
But they weren't the real thing, they were counterfeits.
-
Almost perfect counterfeits.
-
Where had they come from?
-
Who had invested the time and money to create such flawless notes?
-
The authorities understood immediately that to make such consummate currency you'd need
-
very advanced technology.
-
These were obviously by no means your run of the mill counterfeit notes.
-
The experts who looked at them couldn't believe their eyes.
-
This was a huge problem.
-
The U.S., being what we call the “world's currency”, is very, very difficult to recreate
-
perfectly, but someone had done it.
-
When the authorities took these bills to forensic analysts, what those analysts saw before them
-
was the perfect composition of fibers used in the real bills.
-
They even commented that the engravings were possibly of a better quality than those created
-
by the United States Bureau of Engraving and Printing.
-
The fakes were in one sense even better than the real thing.
-
They came up with a new name for these bills, and that was the “supernote”... almost
-
perfect imitations that would fool just about anyone, from the man in the street to the
-
teller at the bank.
-
Hell, if you could create enough of these things you could spend until your heart's
-
content and have little fear about getting caught.
-
Since the discovery of the first super 100 dollar bills, millions more have been found
-
on container ships with loads destined for the USA.
-
But who was making these supernotes?
-
Following the discovery, investigators in the U.S. started a series of operations such
-
as “Royal Charm” and “Smoking Dragon”. at first thinking the counterfeits were being
-
made by powerful gangs originating in Asia.
-
Unlike many organized crime outfits that traffic drugs and guns in the West, Asian gangs tend
-
to work quietly and share a high degree of sophistication.
-
But when the investigations started paying off and links to these gangs were arrested
-
on American soil, the authorities shocked the world.
-
They said that it wasn't the networks of organized crime that were actually making
-
the fake money…it was the government of North Korea.
-
The gangs, they merely spread the money around.
-
In no time at all, North Korea denied this accusation, but the U.S. said that the evidence
-
they had was more than sufficient.
-
North Korea was a money-making machine, they said, and the technologies the country used
-
were second to none.
-
What ensued was a bank in Macau called “Banco Delta Asia” being shut down, and with it
-
the accounts of some of North Korea's ruling elites.
-
The bank was accused of taking counterfeit cash and then laundering it in the world of
-
real money.
-
This shady kind of business was all run through something called Room 39, North Korea's
-
department of dark money.
-
Or at least that's where all of the evidence pointed to- or what evidence was available.
-
Was this such a big deal at the time, seeing as the world was watching in fear as their
-
TVs told them that the secret nation was hellbent on creating weapons that could bring us all
-
down?
-
The answer is yes, it was a really big deal, with some U.S. officials calling it an “act
-
of war.”
-
You see, when counterfeiters are merely street level hustlers doing a bad job recreating
-
cash, or even organized crime giving it a shot, it's not seen as such a large threat.
-
People have been counterfeiting cash for many years, since the time when you could have
-
been hanged, drawn and quartered for trying to fake the “king's coinage.”
-
But one state doing it against another…that could be said to be a hostile act under international
-
laws.
-
The U.S. came right out and said that by counterfeiting another country's currency you are in no
-
uncertain terms a “threat to the American people.”
-
As we said, the branch of the North Korean government responsible for such criminal enterprises
-
is known as Room 39, or Office 39, or Bureau 39…It's all the same thing.
-
How do we know this entity exists since North Korea isn't exactly giving tours to U.S.
-
officials and investigators and showing them exactly how things are run?
-
The answer is high-ranking North Korean defectors.
-
Some of these folks have come out and said the most unbelievable things.
-
Word on the street is that Room 38 deals with the cash made by Room 39.
-
Room 35, though, that's in a league of its own.
-
That's the office that focuses on assassinations and kidnappings.
-
There are also reports that Room 39 is behind the production of illegal drugs on an industrial
-
scale.
-
We are talking meth labs that would impress the fictional Walter White.
-
The drugs can be made in North Korea under the eye of the government and then sold around
-
the world for those American dollars the country likes so much.
-
Since North Korea can't really make money on the international market due to sanctions,
-
one way to make dollars is to go through the black market.
-
Room 39, if you like, is the back market HQ for North Korea.
-
While many folks seem to believe the majority of the world's narcotics come from South
-
America and through Mexico, what's often under looked and perhaps not “Netflixable”
-
enough, is the fact that many of the world's drugs are actually coming out of Asia.
-
All kinds of drugs can be made in countries such as North Korea, or in parts of Myanmar,
-
and then through Asian gangs, shipped around the world.
-
Methamphetamine labs have been a great source of income for North Korea during harsh international
-
sanctions.
-
But ice isn't the only order of the day…it's reported that the country also has many poppy
-
fields and has for a long time.
-
The raw opium is then turned into heroin, and that heroin finds its way into Asian countries
-
and subsequently to North America and Europe.
-
If the country wasn't so closed off, we might have seen a “Narcos: North Korea”
-
show.
-
Experts writing about the country tell us that the meth production began not as a money-spinner,
-
but as a way to keep North Korean soldiers alert and awake.
-
No surprise there…there isn't a military in the world that hasn't given its troops
-
some kind of speed at one time or another.
-
In the 1990s the country hit a wall when there was a very bad opium crop harvest and North
-
Korea saw dope profits fall drastically.
-
Officials who were hit hard by this, put their heads together and said why not start using
-
state facilities and start making methamphetamine and trafficking it abroad.
-
Meth isn't ever prey to a bad harvest, and the officials agreed to knock up some labs
-
under state-owned companies and then get in touch with various Asian criminal networks
-
in China, Myanmar and Thailand.
-
Think about it…if North Korea can produce the best banknotes that forensic analysts
-
have ever seen, what kind of meth could the country make?
-
Perhaps Kim Jong-un and his cronies are Breaking Bad on a scale that would literally blow our
-
minds.
-
But North Korea isn't immune to its own drug problems.
-
One expert said recently the government has cracked down on meth production, since the
-
country now faces a meth epidemic.
-
It isn't that the government was selling it to its own people, but that some North
-
Korean citizens had created their own labs.
-
Private enterprises were creating the meth and then paying bribes to state officials
-
so they could keep producing.
-
Those officials were paying other officials and in the end everyone turned a blind eye
-
and got paid.
-
If the bribe wasn't paid, as happened in 2019 when a woman was given a prison sentence
-
of 10-15 years, you went straight to jail.
-
The “donju”, which means the elites or masters of money, will get paid by these private
-
drug dealers and traffickers.
-
If there is a crackdown, according to some sources in North Korea, any donju doing deals
-
with the public will be notified before the bust.
-
If that sounds confusing to you, what some inside media tell us is that the government
-
isn't happy about the average citizen getting in on the drugs business, and so they are
-
being taken out.
-
However, if they are connected and pay their way in bribes, officials are happy to look
-
the other way.
-
So who pushes North Korea's dope?
-
The answer might surprise you.
-
Scores of trade officials and North Korean diplomats have been arrested for trying to
-
sell NK-made medicinal amphetamines and benzodiazepines worth millions of dollars abroad.
-
This kind of thing goes back many years, and each time the North Korean government has
-
said the diplomats went rogue...that they weren't giving the profits back to powers
-
that be.
-
No one really believed this, of course.
-
One defector said in 2018 that Room 39 was about one thing and one thing only, and that
-
is to supply the great leader of the country and his cronies with money.
-
He called the money raised a, “revolutionary fund.”
-
He said some of the exports controlled by this room are in fact legal, but of the $639
-
million to the $2.5 billion made each year, a lot of the income is from illicit activities.
-
This has been called a royal slush fund, and if you don't know what a slush fund is,
-
it's what you might call dark money earned by corrupt means.
-
He said he worked for the Kumgang trading company, which dealt in gold, gemstones and
-
ginseng.
-
Because there are sanctions on North Korea, part of his job was to smuggle the products
-
across the border into China and from there it would reach the international market.
-
That's hardly the crime of the century, but defectors have also said that another
-
product being smuggled out of the country is weapons.
-
Those weapons might make their way to organized crime or countries devastated by internal
-
conflict.
-
North Korean weapons have ended up in countries in Africa, South America, and the Middle East.
-
Another type of crime North Korea engages in might surprise you.
-
Insurance fraud hasn't been talked about very much in the media.
-
North Korea's Room 39 is said to have raked in hundreds of millions of dollars from international
-
companies working as reinsurers, which means offering protection for insurance companies.
-
North Korea has denied it, but investigators have said that the country has made fraudulent
-
claims on a helicopter crash, two train crashes and a ferry sinking.
-
Other dubious claims have been related to crop failures, mining accidents, fires and
-
floods.
-
The state-owned Korea National Insurance Corporation will initially take the risk, but then that
-
is passed on to international reinsurers from various countries in the world.
-
Reinsurers in Europe, India and Egypt were all involved in the payout for that helicopter
-
crash, which some investigators say was staged.
-
An expert who spoke some years after the crash said one lesson had been learned, and that
-
was, “Never agree to have disputes decided in a North Korea court and never reinsure
-
KNIC.”
-
So if the North Korean people are starving, where does all this money go?
-
While a lot of this cash coming out of Room 39 goes towards the military and the country's
-
nuclear program, most of it fills the pockets of the country's leaders and very little
-
goes to the people who need it most- North Korea's citizens.
-
A lot goes to the super-rich of North Korea, like when the Italian government blocked the
-
sale of two luxury yachts to North Korea in 2009.
-
Room 39 was behind the purchase, and the boats were worth more than $15 million.
-
Reports have also surfaced that through this office, North Korea has illegally imported
-
hundreds of luxury cars, vans and other vehicles.
-
As a report stated in 2010, “Criminal proceeds are distributed to members of the North Korean
-
elite (including senior officers of the armed forces); are used to support Kim Jong-Il's
-
personal lifestyle; and are invested in its military apparatus.”
-
But for a country most consider technologically backwards, North Korea has another criminal
-
surprise waiting for you.
-
Reports in 2019 stated that North Korea's hackers stole around two billion dollars from
-
banks and cryptocurrency exchanges in 17 different countries.
-
Hacking might have become the country's newest and most profitable way of making money,
-
and all without the risk of being stopped by customs officials and having their product
-
confiscated.
-
By now, it's sure that North Korea has made far more than the two billion dollars originally
-
stated, making hacking extremely lucrative for North Korean cyber whizzes.
-
What will come out of Room 39 next we don't know, but we expect more nefarious cyber activity
-
to be on the cards.
-
North Korea has tried a lot of things, including the illegal export of fake Marlboro cigarettes
-
and its own version of Viagra, but it's likely that the hacking game will be the way
-
ahead as long as there are sanctions on the country.
-
As for the meth and the opiates, there will always be a market for that as long as North
-
Korea can keep getting it through the large border with China.
-
As one defector put it, “The only way to earn hard currency is by drugs.”
-
Time has proven him wrong, and now North Korea's criminal enterprises exist in both the real
-
and the cyberworld.
-
Still, don't be surprised if some of the drugs on the streets in the USA and elsewhere
-
start coming with the label, “Proudly Made In North Korea”.
-
Now you need to watch this video, “What It Is REALLY Like Living In North Korea?”.
-
Or watch this, “A Day in the Life of North Korean Dictator Kim Jong Un.”