IT To Root-Out Corruption

For its most recent and very important anti corruption articles please visit :

http://anticorruptionfight.blogspot.com

By: Valerian Texeira.

(First Published in February 2008. Latest revised edition 14th May

2011)

Abstract: - This Paper basically contends that; ‘almost all of the economic crimes popularly known as corruption, occurs primarily because of the economic system facilitating surreptitious or illicit money transactions. The CASH MONEY PLAYS THE KEY FACILITATOR ROLE, as it enables the unscrupulous people to make the illicit money transactions and keep it without leaving any concrete records or evidences so to escape from its public, legal scrutiny. It is also called as "Willful Hiding# or concealment of money. Thankfully the good news is that the Information Technology (IT) today with its innovative “Electronic (E)Money Transaction” including its most recent Near Field Communication (NFC) mobile phone money transaction technology, if made mandatory in combination with ‘Bio-metric Identity’ in all bank accounts, can enable the Governments to root-out most economic crimes, as well as the other crimes. Only if there is a political will to get it done’.

Introduction:

Thanks to the Information Technology (IT) era that our world galloping in today. With its wide-spreading broadband Internet connections, ushering in a new economic age of E-commerce, E-business. Most important is its innovative electronic or the e-money (“credit card” its partial form) transaction technology, IN WHICH THE MONEY PAYMENT/RECEIPT IN-BETWEEN ANY TWO PARTIES NECESSARILY CONDUCTED THROUGH A “THIRD PARTY”, A BANK OR FINANCIAL INSTITUTION THAT PROVIDES THIS MOST IMPORTANT “FINANCIAL SERVICE” AND IN THE PROCESS ALL ITS MONEY TRANSACTION “INFORMATION” GETS INSTANTLY RECORDED in the digital data storage of this registered public financial institution (Bank). Under which it is impossible for anyone to cheat, deny or hide the true accounts of their money and all its transaction track records. Thereby when ordered for its legal enquiry, public investigation of economic crimes, all the money transaction records can be made available before the judicial authorities and the general public to prosecute and punish the guilty behind any reasonable doubts. This provides the historical opportunity to the Governments to completely Root-Out most (if not all) of the economic crimes or corruption from the human society.

Traditional Reason For Hiding CASH Money -- Its Main Drawback:

Traditionally the genuine reason for people to keep their money hidden and not to display its true amounts to the public is to PROTECT it from getting stolen, burgled or looted. Most importantly the fear of getting robbed, or lost while carrying it around for the transaction. Nevertheless, from ages the cash money remained indispensable or quintessential for the economy to conduct the value (commodity) exchange or the trade most efficiently. However today this newly emerging innovative Electronic Money Transaction (EMT) system can fulfill all the needs of the traditional CASH money transaction far more efficiently. Together with, it would entirely remove all such potential threats or the genuine fears of robbery, stealing, theft, by this revolutionary digital monetary system.

By the way, the main drawback of the traditional cash money transaction is that it is impossible practically to keep and maintain the records, accounts of ALL cash money transactions occurring in every place and at every time 24 hours in a day and 365 days in a year for all its legal, public scrutiny. Its paper work and storage cost alone would be so enormous let alone its labor cost of keeping the accounts and other factors. It is only the Information Technology today with its revolutionary E-money transaction record keeping system, practically enables the society to accomplish it. This document marks its beginning.

Money Basically A Public TRUST:

Money is basically a public TRUST. It puts a social responsibility and the legal obligation on all those who owns it over and above a given (taxable) limit that they should maintain and submit its truthful accounts before the designated public authorities for its due legal scrutiny and not to use it for any unlawful, illicit purposes. However in the conventional cash money delivery between any two parties got no such effective mechanism to monitor and record the money movements and know all its present locations all the times to prevent it from getting misused. Thus it becomes possible for the unscrupulous individuals to totally hide its true account and submit false accounting before the legal authorities in breach of its public trust, and engage into many kinds of its “misuse”, clandestine business practices, criminal use or the surreptitious money dealings, illicit money transactions.

Cash Money Hiding Ability Breeds Corruption:

Of course, most of the cash money transaction, business in our world conducted lawfully. However a significant number of this cash money amounting to enormous sums kept hidden away from the legal scrutiny or collected and employed unlawfully called “black money”. The number one among is the ubiquitous economic crime of tax fraud or the tax evasion. Along with its cheating and depriving the public revenue it also puts the other people around in the money market competition into a very disadvantageous position thus pressurizes, encourages or tempts many among them also to commit such crimes. Same is true with other economic crimes and the most common among is the BRIBERY. There are number of other notorious economic crimes like money extortion, money-laundering, narcotic or illegal drug trade, human-trafficking, kidnapping for ransom money etc, I will come to some more of them in the latter sections. It is mainly due to the cash money (currency) basically having this “concealable” property that gives its possessor the ability to hide it from its legal scrutiny thus amass huge amount of illicit or black money and wealth. It begins to spoils the entire economic system, start to breed corruption. Corruption breeds more corruption, crime begets crime.

Cyber Technology Great Promise To Root-Out Corruption:

The world today speeding fast into the digital money cyber economic era. E business’s (Amazon, e-bay), Credit Cards, ATMs getting popular everywhere. However most of the every day money transactions buying and selling trade payments still dominated by the century old printed paper cash currency notes, which is getting more and more inefficient, burdensome and getting corrupted day by day in the face of the sheer volume of growing economy. The economic crimes get boosted with the progression of cyber economy where huge sums of ill-gotten money can be transferred from one bank to another banks through fake or bogus bank accounts Credit card frauds, banking frauds, huge financial scams getting out of the national governments control, many times spiraling into deep economic crisis’s. Corruption, poverty, unemployment and the INFLATION everywhere! The public demands the government to control it, blames it for the failure and elects a new government. The new government comes with the promise to control it but no governments able to do it so far. Fortunately however now the same cyber technology that gives the worlds Governments the nightmare of growing economic crimes at the same time can also offer a great cyber technological or IT solution to prevent all the economic crimes.

The emerging digital money transaction cyber technology if combined with another advancing cyber technology of the Biometric Identity in the world banking or financial field can effectively deter and get rid of almost all the corruption that happening today. In fact establishing a cyber based financial network system with biometric identity not only plausible but INEVITABLE IN THE FUTURE! In this regard, most importantly the ubiquitous cell phones going to play a major role in making all money payments in the future as the experts predict “Cashless Future” with the mobile phones equipped with the NFC (Near Field Communication) chips can revolutionize the entire money payment transaction system in the financial sector. These cell phones conduct everyday peoples money transactions big or small with their unassailable biometric identity password crucial in preventing the identity fraud so make a safe and secure digital money payment. This enables the Governments to bring in the two most important IT Anti-corruption measures that could completely root-out corruption from the world.

The most recent and updated (18^th April 2011) version of the NFC feature related to this paper given in my blog posthttp://bit.ly/fN90iE Which I feel most important for the readers to know on this subject matter.

The Two Main IT Anti-Corruption Monetary Measures

1).Introduce Mandatory Biometric Identity (MBID) in All Bank Accounts:

The first and foremost important IT Anti-Corruption Monetary Measure that I call upon the Government is to introduce a compulsory or Mandatory Biometric Identity (MBID) along with the name address and signature in all bank accounts. Thereupon it should be extended into the registration of ownership of all valuables, properties, assets, wealth document records.

The most important principle of having a MBID for securing or obtaining the bank accounts is to prevent the fake or bogus identity fraud in it. With the MBID one can immediately identify and find out every bank, financial accounts of a (any) person accused of committing an economic crime (be it a tax evasion, bribery, embezzlement and the whole range of it including terrorist financing). Searching it out with a pin-point (BID) accuracy among those banks, properties billions or trillions of records. It is impossible to anyone to fake their Biometric Identity. So the MBID in all bank accounts is the most important perquisite to root-out corruption.

2).Bring-in Mandatory Electronic Money Transaction (MEMT) Replacing The Cash Currency:

Make it mandatory or obligatory on all people to conduct their every money receipt/payment above a given amount in the form of electronic money transaction through their bank to the others bank account, replacing the old traditional cash paper currency. Most importantly in case they make the cash currency deposits or withdrawals above the given amount then it should undergo enquiry about its detailed accounts and bills. Also the payments for things, services, materials pertaining to important security matters (cell phones, credit cards, recharge, rentals, travels, weapons, explosives etc.) should be only conducted through the e-money or the credit card even its amount remains below the given mandatory money transaction sum. In this MEMT setup, the money payment in bank cheques (Check) to others accounts by all means remains perfectly legitimate.

To make the MEMT more effective as an extension, the Governments needs to phase-out or gradually withdraw the higher denomination currencies from the public. The higher denominations currencies have been conveniently used or grossly misused or end up in committing most and major economic crimes. Besides the absent of it would greatly promote the MEMT due to its various contributing factors including the enquiry placed on the cash currency deposit and withdrawals and the MEMT in the security matters. Most importantly however the banks should continue to have those higher denomination currencies even of very high values; a hundred thousand, million even a billion (Dollar, Euro etc) denomination currency bills. However they should be restricted mainly to exchange only between the banks, financial or the monetary institutions.

All BID Supervision Should be Under The Central Social Security Office

The MEMT economic system most importantly requires all people in a nation should have a single universal Social SECURITY Number (USSN) or Individual Person Surety Number or whatever the professional experts like to call it based on each individuals Biometric Identity (BID) mainly for securing or ensuring all their bank financial accounts. Of course, a person may have a number of accounts in several banks at any or many places in the nation but they all should basically identified with their single undeniable BID along with their name address and signature in the Central USSN office. Its main task, first and foremost, it should periodically (monthly, yearly) check and crosscheck all the BID’s of every bank accounts of the nation registered and updated (birth, death) in its central BID data storage server to absolutely make sure under the professional supervision that there is not any kind of BID frauds in the banks. Secondly, it should have the basic authority to access the nations each individuals existing bank financial accounts in details when needed (ordered) for the legal, public investigation of economic crimes. Importantly as well, all the tax eligible people, businesses in the nation should submit their total annual income, including the property accounts (like filing income tax return forms) and pay all their taxes under its jurisdiction. Be it the nations top leaders, presidents, prime ministers, corporate tycoons, CEO’s, down to the common man. All should come under this network of the USSN office jurisdiction system. Together with that authority, it should also have the prime responsibility providing the basic social security, employment or the minimum income guaranty, health insurance, educational aid for every one specially for the weaker sections of the society.

This BID security over the financial accounts also needs to be applied to all fields of valuable commodity transaction, exchange or the handover including exchange of gift, donations, helps (commodities above a given value) property ownership transfer etc. No barter trade of property, precious metals, valuable artifacts should be allowed. All valuable items a person, organizations, institutions owning registered as property with its records under the USSN’s income tax office.

Such a mandatory electronic money transaction economic system operating under the USSN network that keeps accounts of almost every money transaction would make all individuals and the businesses financial accounts completely open or transparent before the legal or the public scrutiny. It would basically dissuade or deter people from engaging in any of the economic crimes or corruptions because that essentially leaves the electronic money trail as clear evidence that could be impossible for anyone to get-rid-of.

Some Main Economic Crimes IT Could Prevent:

Tax fraud and the bribery are the two major economic crimes that this MEMT can undoubtedly prevent. Apart from it, the counterfeit money, money-laundering, kidnapping ransom money payment, the cash money robbery/theft/ stealing, etc., will become a thing of the fast in a fully pledged MEMT system where there is absolutely no printed paper Cash currency money to carry it out in the first place! Black marketing, illegal hording, all kinds of smuggling, human trafficking, narcotic or illegal drugs trade, weapons, mafia, ‘Terrorist Finance’ etc., every one of those accounts will be absolutely exposed with pin-point accuracy under the BID based MEMT economic system (explained above) so those culprits days will be numbered.

Credit card fraud/fake/theft, or the fear of getting it lost and its misuse mostly will disappear. With its BIDN/MEMT network system in place it would be highly difficult for the fraudsters to buy things online with complete anonymity or to commit any of the credit card crimes and to get away with it. After all in such electronic money network system all proceeding money transactions can be immediately traced back to its preceding accounts and all the other accounts that transacted with it would reveal its all round true connections.

Corporate business scams, misappropriation of public funds, misuse in the public distribution system, developmental project money embezzlement, poverty scheme money swindling, buying of the bureaucracy, police, judiciary, politician for money, none can escape from this constantly vigilant digital money surveillance or scanning technology. On the other hand it could also prevent those malicious, false accusations, allegations of economic crime, corruptions.

It is not possible for me to list out all those economic crimes that it can prevent, in this document. Nevertheless I should finally mention a most important point briefly in this regard. The root-cause of most of the property crimes, murders, sex crimes, social injustices, environmental degradation, violent retaliations many (if not most) times, motivated by or against the surreptitious or the shrouded money transactions that the traditional cash money transaction economic system allows. Replacing it with this new and transparent MEMT economic system can greatly prevent it. Besides all of which, as a bonus, it can also provide the government with an entirely new kind of financial control device to check inflation, stock market crash etc economic crisis's. Not to mention, many (if not most) times the main cause of it lies in the corrupt or unscrupulous trading practices.

Anti-Terrorism: MBID/MEMT To Track Down Terrorist

Besides combating corruption, a fully pledged MBID/MEMT can also work as powerful Anti-terrorism machinery, which can tremendously help the government security agencies to track down the criminals specially the terrorist. When a terrorism investigation ordered, this system can concretely (electronically) trace back every day PHYSICAL movement, location, phone call, contact of the suspect based on his/her every day buying and the money payment for things, services, material that he /she had made, which includes any such things that the suspects left behind the crime scene. This MBID/MENT network leaves behind an unmistakable physical evidence electronic trail on whatever things it touches, which is impossible to get rid off.

By the way, the MBID/MEMT system works quite differently or more fully in combating terrorism than in combating corruption. In the former the entire money transaction (or the absence of it) in the suspect bank account can show the concrete evidence to prove or disprove the involvement in the given crime but in the latter it is only the illicit money transaction that can prove or disprove the corruption.

Poverty Eradication Achievable Within Few Years:

Poverty eradication would become a definitely possible and achievable goal under this MEMT system within a few years. First of all as I mentioned it before, the prime responsibility of the USSN is to provide the basic social security, employment, the minimum income guaranty, basic food, shelter, education health for all people and the government will have enough money needed to do it. Just imagine the amount of money when almost all tax revenues gets collected by the prevention of all the tax evasion or the fraud alone! It could provide more than enough money for poverty eradication programs. At the same time the USSN system with it biometric ID, would mostly prevent the unscrupulous people from swindling the welfare aid money in the name of poor. Moreover when the basic ground of all those economic crimes gets removed, most of the money that used to drain into that corruption channel, now redirected into the legal economy and into the social developmental programs.

Legitimate Businesses Nothing To Fear:

People who conduct honest, responsible business practices have nothing to fear from this MEMT economic system. In fact, it can very much fulfill the vision of the UN Human Rights Principles particularly the UN Global Compact tenth Principle, which specifically sates: “ Businesses should work against corruption in all its forms, including extortion and bribery”. Responsible businesses would rather greatly benefit from it, because it would create a very conducive atmosphere to practice a corruption free, progressive economy in the absent of the corrupt, criminal enterprise (tax fraud, bribe, extortion, etc.) as the latter are the worst enemies of the honest businesses. Most important of all is that there will be no restrictions or limits imposed on people in their legitimate money earnings; profit making or owning money or property of any huge amounts. One can be a billionaire or a trillioniar, provided all their businesses money transaction remain “TRANSPARENT” under, the MEMT and that information remains open to the democratic public, USSN's legal scrutiny. In fact the Government should encourage businesses, small and big, by providing them with more opportunities, removing many of those trade barriers, hurdles and most importantly by lowering the taxes.

Only Unscrupulous People Will Get Terrified:

It is only the unscrupulous people who engage in the economic crimes, corruptions, illicit business, will get terrified of it because this MEMT leaves behind the concrete records of the electronic money trail as clear as day the light so they can no longer cover-up its tracks and conceal their crimes, so will be caught with its clear evident get duly prosecuted and sent to prison.

Both Are Complimentary For Each Others Success:

Of course this MEMT economic system perhaps may face some difficulties in its infant or initial stages. It also depends up on place-to-place and countries to countries. It will depend on their social economic and the political system and its development. Nevertheless it is far simpler and easier to implement in the industrially advanced countries as its basic infrastructure already in place there so the developing countries obliged to follow it. In fact it is far easier to implement compared to those tens of thousands of those cumbersome anti-corruption laws! The fundamental difference between the two is that the MEMT is a single wholesome technological solution based on almost fail-safe advanced technology while the latter are hundreds of years old antiquated legal solutions so much fraught with numerous human error and complications. Surprisingly however now they both seems complimentary for each success in the future.

It Needs “Political Will” To Get It Done

It would not intrude in the peoples private or personal life compared with the other electronic devices that are being used in social security for ex; the CC camera's. It would be more like people having a most important cell-phone ID number. There are already more stringent legislations in place that rules, laws that the citizens made to obey as they are legally obliged to submit all their property, money transactions, true accounts before the public or the legal authorities and not to engage in the economic crimes. Today there exist this innovative electronic credit card digital or E-money transaction technology to make it happen. It is now for all the people to see to it that this innovative IT develops to its fullest productive potential that includes its deployment in the prevention of almost all economic crimes, corruptions. What is really needed is the political will to get it done.

Future of Potential Growth

Along with the Government its concerned legislatures, departments, also the private sector mainly the financial institutions, banks, credit card companies combined with the E-commerce/business, online companies, IT biometric sector, have to take the pivotal role in the construction of the building blocks of this system. They will have the enormous potential for growth and a great social responsibility as well to encourage people to participate more and more into this MENT economic system of the future.

A SOCIALIST Revolution Without the Abolition of PRIVATE PROPERTY:

Abolition of cash (paper) currency money and making all money transaction in electronic would bring in a more “just” economic system. A new kind of Democratic Republic Socialist Revolution without the abolition of 'private ownership of means of production' or the "Private Property". A blend of benevolent capitalism and socialism.

Valerian Texeira. St, Joseph Nagar, Jeppu, Manglore-575002.INDIA.

For its most recent and very important anti corruption articles please visit :

http://anticorruptionfight.blogspot.com

Recommended Reading -Web links

Special Reading on E-Money

‘The Potential for a Cashless Future’. BBC Click On Line .

http://news.bbc.co.uk/2/hi/programmes/click_online/7308362

The 4-Way Battle to Control Your Digital Wallet (18^TH March 2011)

http://gigaom.com/mobile/the-4-way-battle-to-control-your-digital-wallet/

NFC Mobile Devises Replacing Cash

http://anticorruptionfight.blogspot.com/2011/04/nfc-mobile-devises-replacing-cash-in.html

Anti-Corruption UN Agencies

United Nations Global Compact: http://www.unglobalcompact.org/index.html

Anti-Corruption. Tenth Principle-10 http://www.unglobalcompact.org/AboutTheGC/TheTenPrinciples/principle10.html

UN Office on Drug and Crime: http://www.unodc.org/unodc/index.html

© Copyright 2008 –2011. First published on the month of February 2008. All rights of this publication reserved by the author. This document material information can be freely used for educational , social awareness and other such purposes by mentioning its authors name, except for the commercial use one must obtain permission from the author.

Valerian Texeira. St. Joseph Nagar, Jeppu Mangalore -575002 INDIA

Death of merit: Capitation scam exposed

Came across this above titled corruption news report in:

http://www.timesnow.tv/HRD-Ministry-takes-note-of-capitation-fee-scam/articleshow/4318630.cms.

There are million upon millions if not billions of such corruption or the economic crimes going on all over the world in which India definitely has its fair share.

The existing anticorruption legislations and bills miserably fails to prevent it on the other hand the worlds Governments do not have the political will to implement the most effective anticorruption measure that can root-out almost all the economic crimes (corruption) and its related crimes. Let me present it briefly in the following:

BAN ALL CASH MONEY TRANSACTIONS ABOVE A GIVEN AMOUNT (say $ 5 or so) ABOVE THAT AMOUNT ALL MONEY TRANSACTIONS SHOULD BE CONDUCTED ONLY BY THE ELECTRONIC (E) MONEY (credit card its popular form) DIRECTLY THROUGH THE BANK TO THE BANK ACCOUNTS, WHICH MOST IMPORTANTLY MUST HAVE THE SECURITY OF “BIOMETRIC IDENTITY”.

This E-money transaction with biometric identity security system basically able to keep the electronic record of all such money transactions conducted through its network. Therefore if any one engage in ‘illicit money transaction’ (bribe, graft, illegal drugs, money, fraud, scams, money laundering , terrorist finance etc) it invariably gets recorded in the bank account of the person or the firm. So when a legal investigation ordered of any alleged corruption, this network would provides the law enforcement an entirely new kind of anti-corruption investigation tool that can easily identify, track down, charge and finally convict the criminals in the court with that undeniable bank account money transaction record as the concrete evidence or proof. This can root out almost all corruption and crime what is really needed is the international “political will” to get it done. However, see NO HOPE of it, so the hope of eradication of corruption.

Also see the following most important papers on this subject matter.

“IT To Root-Out Corruption”.

www.anticorruption-it.info

http://i-opinion-about.blogspot.com/

Corruption Is The Root-Cause of Terrorism

http://i-opinion-about.blogspot.com/2009/02/corruption-is-root-cause-of-terrorism.html

IT To Root-Out Illegal Drugs Trade

http://i-opinion-about.blogspot.com/2009/02/it-to-root-out-illegal-drugs-trade.html

Credit Card Money To Root-Out Counterfeit Currency

http://i-opinion-about.blogspot.com/2009/03/credit-card-money-to-root-out.html

Anti-Corruption Leadership More Corrupt

(article deleted subject to revision)

IT To Root-Out Illegal Drugs Trade

IT To Root-Out Illegal Drugs Trade

Information Technology (IT) today provides an unprecedented, but extraordinarily simple way for the Government to successfully Root-Out most of the corruption and crimes prevailing today including the illegal drug trade.

To accomplish it, first of all the Governments should Bring in the most important policy of ‘biometric identity in all bank accounts’. I call it “Mandatory Biometric Identity” (MBID), whereby making all money transaction above a given amount only through the bank to bank account. It can be called as; “Mandatory Electronic Money Transaction” (MEMT).

Let me explain how this anti-corruption system works in a simple practical way. Under the above monetary policy, suppose the government stipulates that all money transaction (buying and selling or any money transfer) above say $10 should be only conducted through the bank to the bank accounts. If any one making cash deposit or withdrawals above the given amount should submit the detailed accounts of its income or the payment source.

In this situation if the drug peddler accepts bank to bank account E-money or credit card from the customer in exchange of to the illegal drugs, then electronic money transaction instantly gets recorded in the bank that will serve as the concrete evidence for the law enforcement to arrest and to convict most of them without any difficulty. So instead of the E- or the credit card money the peddlers most probably accept the cash money as they find it safe. However sooner the peddler start to face a serious problem as the cash money gets accumulates into large sums which he/she can not deposit in the banks because it requires the detailed accounts of where all the cash money came from or its original source that is why they avoided doing so in the first place. So for all practical purpose the drug peddler make the cash money payment to the main drug supplier. However then it will put the top drug mafia bosses in far serious problem as it will become extremely difficult for them to dispose (money laundering) such a huge amount of cash money in any available means, since opening a fake bank account or depositing large sums of illicit cash money becomes absolutely impossible due to the Governments MBID/MEMT bank policy.

In such given market environment it won’t be possible to anyone including the drug peddlers or the criminal bosses with the accumulated large sums of cash money, to buy most of the things they want, goods and services worth more than $10 can not be purchased by cash despite their huge amount of cash money while most of their essential goods and services prices generally exceeds that amount. Therefore, for anyone with the large sums of cash money instead of a valuable asset it would become a huge liability very difficult to get rid off, and highly dangerous to keep.

In such situation the traders or the businesses will prefer e-money (credit cards, bank cheques) even for smaller or far less than $10 amount. Similarly the general public also prefer to buy with e-money as almost all their income (salary etc) deposited directly in their bank account as it exceeds more than the stipulated amount and they also will try to avoid accumulating large sum of cash money so prefer purchases by the cards (E-money)payment even while making small purchases. In such a E-money transaction economy every money transaction (licit or illicit) gets instantly recorded with the concrete evidence that overwhelmingly lead into conviction for the criminals engaged in corruption.

This will make it extremely dangerous for any one engage in illicit money transaction the basic foundation on which almost all corruption or crime stand upon. Therefore the MBID/MEMT combined will mostly dissuade any illicit businesses including the illegal drug trade. More on this subject matter in the principle document titled: “IT To Root-Out Corruption” and other main articles in the web links given below.

IT To Root-Out Corruption”

http://i-opinion-about.blogspot.com/2009/01/it-to-root-out-corruption.html

Corruption Is The Root-Cause of Terrorism

http://i-opinion-about.blogspot.com/2009/02/corruption-is-root-cause-of-terrorism.html

NDTV Report: Satyam BENAMI Bank Accounts

NDTV reported today (13^th Jan 2009) that B. Ramalinga Raju, had opened multiple “BENAMI” accounts through relatives and friends. Fixed deposits to the tune of Rs 29.5 crore were found in those accounts. The funds were frequently used for trading in Satyam shares, flouting the insider-trading norms. See the report titled: “Raju had opened multiple benami accounts: I-T probe” link in: http://www.ndtv.com/convergence/ndtv/story.aspx?id=NEWEN20090079818>

This report strengthens my doubt that perhaps a substantial portion of the estimated 7800 Crore of Satyam investors stiffened money now sitting cool and safe in the bank accounts or converted into, cash currencies and valuable assets, properties of B. R. Raju, family members, close relatives, and the associates involved in this fraud!

However it would be highly unlikely that the Satyam fraud investigating agencies ever will be able to detect or find out those bank accounts and the valuable assets because most of those bank accounts , properties are cleverly hidden under bogus or fake ID documents in the BANAMI accounts of those culprits.

To prevent people from having the fake ID bank accounts and owning valuable assets properties under the Benami or the bogus name and to engage in all sorts of illicit money transaction or corruptions including this fraud; I urge the Government to “bring in Mandatory Biometric Identity MBID in all bank accounts, thereby making all money transaction above a given amount (specially when it comes to large sums of money and the things of social security matters) only through the bank to the bank account called Mandatory Electronic Money Transaction.

The Satyam fraud investigating agencies would have easily detected and immediately recovered all the money and the properties made by the Satyam fraud if the above mentioned MBID/MEMT bank account money transaction policy in place. Most probably such fraud would not have happened there in the first place! For more information on this matter please search: “IT to Root-Out Corruption”.

Valerian Texeira
St. Joseph Nagar Jeppu
Mangalore – 575002 INDIA

http://www.anticorruption-it.info

Satyam Fraud: Combating IT Solution

B. Ramalinga Raju, co-founder and chairman of one of India's biggest IT firms of ‘Stayam Computer Services’ and its top brass reported to have involved in a huge corporate fraud amounting to Rs. 7800 Crores! Its ongoing media reports since 7^th Jan 2009 continues today.

It is very much possible that the large portion of this 7800 Crore of Satyam investors stiffened money now sitting safe in the bank accounts or converted into, cash currencies and valuable assets, properties of B. R. Raju, family members, close relatives, and the associates involved in this fraud!

However it would be highly unlikely that the Satyam fraud investigating agencies ever will be able to detect or find out those bank accounts and the valuable assets because most of those bank accounts , properties are cleverly hidden under bogus or fake ID documents of those culprits.

To prevent people from having the fake ID bank accounts and owning valuable assets properties under the bogus name and to engage in all sorts of illicit money transaction or corruptions including this fraud; I urge the Government to “bring in Mandatory Biometric Identity MBID in all bank accounts, thereby making all money transaction above a given amount (specially when it comes to large sums of money and the things of social security matters) only through the bank to the bank account called Mandatory Electronic Money Transaction.

The Satyam fraud investigating agencies would have easily detected and immediately recovered all the money and the properties made by the Satyam fraud if the above mentioned MBID/MEMT bank account money transaction policy in place. Most probably such fraud would not have happened there in the first place! For more information on this matter please search: “IT to Root-Out Corruption”.

Valerian Texeira
St. Joseph Nagar Jeppu
Mangalore – 575002 INDIA

http://www.anticorruption-it.info

Corruption Case Against Executive Engineer

PS. I came across this above titled corruption news report in the Times of India online on 16th November 2008. It having the following web address and most importantly my comments on it given below. http://timesofindia.indiatimes.com/Lucknow/Corruption_case_against_executive_engineer/articleshow/3718578.cms


Every day we hear some high profile news reports of corruption in the media such as the above. People being caught even convicted on corruption charges. However such news report mainly serves to reassure the public that the anticorruption institution and the Governments at least or at last succeeds in doing something to unearth corruption, which seems to hidden in every where in the society.

However among the hundreds of thousands of such unscrupulous people in position who engage in “corruption” or the illicit money transaction’ every day, the anticorruption law enforcement succeeds to detects and catch only a few. The overwhelming majority of them never been caught they remain absolutely undetected and very much continue with the corruption but remain as the respected members of our society!

Although the public knows it but they have been made to believe that basically there is no way to eliminate the overwhelming majority of those ‘illicit money transaction’ or the corruption. Because most of the times it leaves no concrete evidence of the money trail therefore becomes impossible to successfully prosecuted under the law. However contrary to this belief there in fact exists an extraordinary way that can detect almost all illicit money transaction with the concrete evidence of the money trial.

Let me explain it in following simple way; The ‘illicit money transaction’ or the “corruption” basically occurs due to the CASH MONEY TRANSACTION. As it enables people to make money transaction without leaving any concrete money transaction trail evidence behind. So it is being used in most of the illicit money transaction (corruption) deeds at one stage or the other! Therefore as long as the Cash Money remains as the dominant form of money transaction it would be impossible for anyone to eliminate corruption in any significant way.

Therefore the only way to root-out corruption is to Ban Cash Money Transaction *above a given amount*. Bring in Mandatory Electronic Money Transaction (MEMT, Credit Card money its popular form) in its place together with Mandatory Biometric Identity (MBID) in all bank accounts. In this way the Governments can successfully eradicate almost all kinds of corruption, crimes that we see today in the society.

However have no more hope that the anticorruption institutions and the governments ever going to take these two extraordinary MEMT and MBID anticorruption monetary measures that can basically root-out almost all kinds of corruption and crime that we see today. Perhaps it is too much for its vested interests to basically understand it. As a saying goes “people don’t understand things when their salaries depend upon not knowing it”!

Nevertheless keep on trying to make them understand about it as long as I can. Following the wisdom advise, which says; “Try and Try again and again and you will succeed at last”. But I wonder if the success ever knows the wisdoms advice!

Valerian Texeira.

IT To Root-Out Counterfeit Currency

(Credit Card ToCombat Counterfeit Currency)

This document initially prompted by the news report of RBI decision to withdraw the currency notes of the year 1996 and 2000 to curtail the circulation of counterfeit currencies, reported in the media 28th August 2008.

Counterfeit currencies are the nightmares of common people. It is very difficult for people to commonly distinguish (in a non-embarrassing normal glance) the fake from the genuine notes even for the professionals. It is a major headache for the Governments, sabotaging the economy and pose a serious threat to the national security. The menace of the fake currencies increase as the advancement of printing technology made widely available.

Prevention of counterfeit currencies in circulation is the Governments main responsibility. However by the time the law enforcement catch the culprits most of the fake notes already out in the circulation! Not to mention the main culprits never been caught as the counterfeit rackets many times run by big criminal gangs, powerful mafia’s. Even Governments sponsoring terrorism said to be involved to finance the terrorism and destabilize the other countries.

In our technologically advancing world today the Governments tries hard to prevent the menace of counterfeit currencies by brining in more and more sophisticated currency papers, printing designs also by allocating more financial resources in the counterfeit currency detection and law enforcement catching the culprits. However the menace still continues more or less as it did before!

What is needed in my view is to bring in an entirely new kind of innovative trading technological (IT) approach that would make the existence of the counterfeit money in the economy virtually impossible! -- You believe it or not, this new kind of innovative technology IT solution already exists and very much in practice in our business trading! What is really needed is the Government needs to have the Political Will to implement it more and more widely in the business trade by making it obligatory!

Let me explain the above mentioned IT solution to root-out counterfeit currencies briefly. Most of us today know about doing trade, business, money exchange by the use of “Credit Card”. In which the money transaction between the two parties made directly through their bank to bank accounts by the aid of Electronic (credit card) money transfer. This completely takes away the need of exchange of the paper notes between the two trading party so any involvement or existence of the counterfeit currencies in this money transaction!

In our business world today this Electronic or E-money (credit card) transaction very much in practice what is needed is the government to promote it by encouraging people to trade through the credit card instead of the cash currency especially when it comes to the big amount than make such trade obligatory. I name it as the Mandatory Electronic Money Transaction (MEMT) in my paper document titled: “IT To Root-Out Corruption”. (Search the title in the web.)

The MEMT in the trade or business can root-out most of the economic crimes, corruption prevailing in our world. The major among them of tax evasion (fraud), bribery, money embezzlement etc. Elimination of counterfeit currency is just one among the many economic crime that it can most easily accomplish. However the main point in this is it can accomplish this task in its given area with total success that conventional counterfeit prevention measures could never achieve.

Valerian Texeira
St. Joseph Nagar, Jeppu
Mangalore – 575002 INDIA

Bring In Mandatory Biometric Identity (MBID) In All Bank Accounts

In the "IT To Root-Out Corruption" my first and foremost pressing appeal to all, specially to the national Governments is to bring in a policy of Compulsory or Mandatory Biometric Identity (MBID) in all bank accounts along with the name address and signature. Most importantly it should be extended to the ownership registration records of valuable property, assets by mandating all the important high amount of money transactions transfers, payments, receipts should be made only through the MBID enabled bank to the bank accounts for the income-tax-return-file and other legal purposes. (In fact, I am told such bank to bank payment guideline regulations, laws exist even today except the MBID in it so the laws remains mostly ineffective in its anti-corruption purpose.) Already, the Government for security reasons makes people to register themselves with their biometric identity for obtaining, passports, voter’s identity, driver’s licenses etc, mainly to prevent the identity fraud, and other crimes. --The MBID has already entered into the financial system in the online money transaction through the cell phone market in quite a big way for secure payment by a technology called Near Field Communication (NFC). In fact now a days a fully developed biometric identity (finger print, face iris recognition including the photo) considered to be a very important requirement to get this credit card account to prevent the identity theft and the bank account money fraud. Now extending it in all the bank accounts won't be that difficult, actually it seems to be a long overdue in view of the security needs involved.

MBID Counterpart: Name Address and Signature:

Considering the great importance of the MBID in the matters of personal surety, security let me elaborate it more in this section by comparing it with its conventional counterpart: name, address and the signature. In our growing e-commerce, business world today, more and more money transactions conducted through the bank-to-bank accounts. Credit card money becoming more common. People have the freedom and perhaps the need to have multiple bank accounts in as many banks and own properties all over the country with a name address and signature as its owners identity.

Now the major problem of a given name address and signature is, it remains unreliable thus becomes infeasible for the corruption investigation agencies to distinctly identify and find out ALL the bank accounts, assets, properties of a individual having under this security “promise” of a “name” address and signature that they find in all the banks records. It is almost impossible for them to know among those hundreds of millions of bank accounts, which they come across in their nations banks accounts random search, how many of them belong or connected to the same individual! Because there can be thousands of individuals genuinely having the same name or a person may have several changes, “alias” in his/her name, address in different bank accounts. This provides the criminals the great opportunity to thoroughly misuse it by registering under the fake, false or bogus name, address and signature thus able to carry out their illicit money transactions (payments, receipts) through it, specially the money laundering which is known to also involved in the terrorist financing among the other crimes and mostly get away with it with total immunity!

However bringing in a MBID in all bank accounts can completely put an end to all such indistinguishable, fake, bogus, bank accounts. So when an investigation of economic crime, corruption ordered, the agency can distinctly find out all the bank accounts a person/organization having in every banks all over the county and outside, all its money, assets transactions, in-and-out. There will be absolutely no chances of mistaking the person! Let me explain it in this way; today a person is basically identified by the name, signature and the addresses mostly for all-purpose. However searching and identifying all the bank accounts and assets of a person accused of the economic crime relaying on this illusive name, signature and address so far remains mostly a futile task. Because there can be thousands of people genuinely having the same name or a person may have several alias names address in different bank accounts. They mostly remain indistinguishable, genuine or the bogus!-- However by adding the biometric identity to the bank accounts name and addresses, its owners identity becomes absolutely certain with this concrete biometric evidence or the proof. So one can accurately pinpoint the person and find out all his/her bank accounts properties, assets, wealth in seconds!--- It is impossible for any one to register themselves under a fake biometric identity. Therefore it is most important to make it mandatory along with the name address and signature in the sensitive security, surety, matters that includes bank accounts and extending it into the property, assets ownership.

Of course it won't be as effective without the Mandatory Electronic Money Transaction (MEMT) i.e. making all money transactions (payments receipts) above a given amount only through bank to bank, which is the second IT Anti-Corruption Monetary Measure. Nevertheless this MBID is its perquisite and above all is far more practical, PRAGMATIC, easier to implement compared to the other anti-corruption monetary measures. It can significantly deter the economic crimes so reduce the corruption and necessarily lead into the future fully pledged MBID/MEMT system in which most of the crimes including the terrorism that as we see it today can be gets eliminated.


PS. Its been explained in details in its main text Titled “IT To Root-Out Corruption.” Its web link : www.anticorruption-it.info

Two Main IT Anti-Corruption Monetary Measures.

Please note: The following document is the most important part of "IT To Root-Out Corruption, the principle document.

Before going into this “Two Main IT Anti-Corruption Monetary Measures”, let me start with the abstract of this entire “IT To Root-Out Corruption” main text first. Most of the economic crimes, corruptions occurs mainly due to the surreptitious, illicit or the hidden money transactions that escape from the public, legal scrutiny. Now the good news is that the Information Technology (IT) today with its innovative digital or the “electronic money transaction” if made mandatory with biometric identity, enables the Government to root-out most economic crimes, known as corruption. It all basically stands upon two main “IT Anti-Corruption Monetary Measures”, which I present in the following:

1).Introduce Mandatory Biometric Identity (MBID) in All Bank Accounts: The first and foremost important IT Anti-Corruption Monetary Measure that I call upon is to introduce a compulsory or Mandatory Biometric Identity (MBID) along with the name address and signature in all bank accounts. Thereupon it should be extended into the ownership of valuable properties or assets.

The most important principle of having a MBID for securing or obtaining the bank accounts is first of all to prevent the fake or bogus identity fraud in it. With the MBID one can immediately identify and find out every bank, financial accounts of a (any) person accused of committing an economic crime (be it a tax evasion, bribery, embezzlement and the whole range of it including terrorist financing). Searching it out with a pin-point (BID) accuracy among those banks, properties billions or trillions of records. It is impossible to anyone to fake their Biometric Identity. So the MBID in all bank accounts is the most important perquisite to root-out corruption.

2). Promote Mandatory Electronic Money Transaction (MEMT) Against Cash Currency: Make it mandatory or obligatory on all people to conduct their every money receipt/payment above a given amount in the form of electronic money transaction through their bank accounts, replacing the old traditional cash paper currency. Most importantly in case people make the cash currency deposits or withdrawals above the given amount then it should undergo enquiry about its detailed accounts and bills. Also the payments for things, services, materials pertaining to important security matters (cell phones, credit cards, recharge, rentals, travels, weapons, explosives etc.) should be only conducted through the e-money or the credit card even its amount remains below the given mandatory money transaction sum. In this MEMT setup, the money payment in bank cheques (Check) to others accounts by all means remains perfectly legitimate.

To make the MEMT more effective as an extension, the Governments needs to phase-out or gradually withdraw the higher denomination currencies from the public. The higher denominations currencies have been conveniently used or grossly misused or end up in committing most and major economic crimes. Besides the absent of it would greatly promote the MEMT due to its various contributing factors including the enquiry placed on the cash currency deposit and withdrawals and the MEMT in the security matters. Most importantly however the banks should continue to have those higher denomination currencies even of very high values; a hundred thousand, million even a billion (Dollar, Euro etc) denomination currency bills. However they should be restricted mainly to exchange only between the banks, financial or the monetary institutions.

Make Biometric Identity Compulsory In All Bank Accounts:

Among the above two “IT Anti-Corruption Monetary Measures” first of all at present, my most important pressing appeal to all, specially to the national Governments, is to come forward in support of a policy to brining in a Compulsory or Mandatory Biometric Identity (MBID) in all bank accounts along with the name address and signature. Most importantly it should be extended to the ownership registration records of valuable property, assets by mandating all the important high amount of money transactions transfers, payments, receipts should be made only through the MBID enabled bank to the bank accounts for the income-tax-return-file and other legal purposes. (In fact, I am told such bank to bank payment guideline regulations, laws exist even today except the MBID in it so the laws remains mostly ineffective in its anti-corruption purpose.) Already, the Government for security reasons makes people to register themselves with their biometric identity for obtaining, passports, voter’s identity, driver’s licenses etc, mainly to prevent the identity fraud, and other crimes. --The MBID has already entered into the financial system in the online money transaction through the cell phone market in quite a big way for secure payment by a technology called Near Field Communication (NFC). In fact now a days a fully developed biometric identity (finger print, face iris recognition including the photo) considered to be a very important requirement to get this credit card account to prevent the identity theft and the bank account money fraud. Now extending it in all the bank accounts won't be that difficult, actually it seems to be a long overdue in view of the security needs involved.

Of course it won't be as effective without the Mandatory Electronic Money Transaction (MEMT) i.e. making all money transactions (payments receipts) above a given amount only through bank to bank, which is the second IT Anti-Corruption Monetary Measure. Nevertheless this MBID is its perquisite and above all is far more practical, PRAGMATIC, easier to implement compared to the other anti-corruption monetary measures. It can significantly deter the economic crimes so reduce the corruption and necessarily lead into the future fully pledged MBID/MEMT system in which most of the crimes including the terrorism that as we see it today can be eliminated. Some of it explained in the following section.

Anti-Terrorism: MBID/MEMT To Track Down Terrorist:
Besides combating corruption, a fully pledged MBID/MEMT can also work as powerful Anti-terrorism machinery, which can tremendously help the government security agencies to track down the criminals specially the terrorist. When a terrorism investigation ordered, this system can concretely (electronically) trace back every day PHYSICAL movement, location, phone call, contact of the suspect based on his/her every day buying and the money payment for things, services, material that he /she had made, which includes any such things that the suspects left behind the crime scene. This MBID/MENT network leaves behind an unmistakable physical evidence electronic trail on whatever things it touches, which is impossible to get rid off. However This MBID/MEMT system is simply not possible without first establishing a MBID in all bank accounts.

PS. Its first anti-corruption monetary measure explained in more details in another document titled: IT Anti-corruption : Make Biometric Identity Compulsory In All Bank Accounts” . See it in the next blog post.

IT To Root-Out CORRUPTION: Revised and updated on 9/11/08.

By: Valerian Texeira.

Abstract: - This document basically contends that; ‘most of the economic crimes occurs mainly due to the surreptitious or illicit money transactions that escape from the public, legal scrutiny. Now the good news is that the Information Technology (IT) today with its innovative digital or the “electronic money transaction” if made mandatory with biometric identity, enables the Government to root-out most economic crimes, known as corruption. Only if there is a political will to get it done’.

Introduction:

Thanks to the era of Information Technology (IT) that our world galloping in today. With its widespread broadband Internet connections it is ushering a new economic age of E-commerce, E-business. Most important in this regard is its innovative electronic or the E-money (“credit card” its partial form) transaction technology, in which the money payment/receipt in-between any two parties necessarily conducted through a “third party”, a bank or financial institution that provides this most important “financial service” and in the process all its “INFORMATION” gets instantly recorded and stored in this registered public institution. Under which it is impossible for any one to cheat, deny or hide the true accounts of their money and all its transactions from the public or legal scrutiny when authorized.

Traditional Reason For Hiding CASH Money -- Its Main Drawback:

Traditionally the genuine reason for people to keep their money hidden and not to display its true amounts to the public is to PROTECT it from getting stolen, burgled or looted. Most importantly the fear of getting robbed, or lost while carrying it around for the transaction. Nevertheless from ages the cash money remained indispensable or quintessential for the economy to conduct the value (commodity) exchange or the trade most efficiently. However today this newly emerging innovative IT of Electronic Money Transaction (EMT) can fulfill all the needs of the traditional CASH money transaction far more efficiently. Together with, it would entirely remove all such potential threats or the genuine fears of robbery, stealing, theft, by this revolutionary technological system.

By the way, the main draw back of the traditional cash money transaction is that it is impossible practically to keep and maintain the records, accounts of ALL cash money transactions for its legal, public scrutiny. Its paper and storage cost alone would be so enormous let alone its labour cost and other factors. It is only the IT today with its E-money transaction record keeping digital technology, practically enables us to accomplish it. This document marks its beginning.

Money Basically A Public TRUST:

Money is basically a public TRUST. It puts a social responsibility and the legal obligation on all those who owns it over and above a given limit that they should maintain and submit its truthful accounts before the designated public authorities for its due legal scrutiny and not to use it for unlawful, illicit purposes. However the conventional cash money delivery between any two parties got no such effective technology to monitor and record its movements and know all its location all the times to prevent it from getting misused. Thus it becomes possible for the unscrupulous individuals to totally hide it or submit its false accounting before the legal authorities in breach of its public trust, and engage into many kinds of its “misuse”, clandestine business practices, criminal use or the surreptitious money dealings.

Cash Money Hiding Ability Breeds Corruption:

Of course, most of the cash money transaction, business in our world conducted lawfully. However a significant number of this cash money amounting to enormous sums kept hidden away from the legal scrutiny or collected and employed unlawfully. The number one among is the ubiquitous economic crime of tax fraud or the evasion. Along with its cheating and depriving the public revenue it also puts the other people around in the money market competition into a very disadvantageous position thus pressurizes, encourages or tempts many among them also to commit that crime. Same is true with other economic crimes and the most notorious among is the extortion or the BRIBERY. There are number of such economic crimes that I will mention some of them in the latter sections. It is mainly due to the cash money (currency) basically having this “concealable” property that gives its possessor the ability to hide it from its legal scrutiny that could lead into its surreptitious transactions. So it begins to spoils the economic system, start to breed corruption. And the corruption breeds more corruption, crime begets crime.

Cyber Technology Also Can Prevent Most Economic Crimes:

The world today speeding fast into the cyber space economic age. Cell phones have become the integral part of peoples every day's life. However the nations money transaction system in majority still remains mainly in the centuries old printed paper cash currency money, which is getting more and more inefficient day by day in the face of the sheer volume of growing economy and its crimes boosted with its cyber technology. All of it getting out of the national governments control, many times spiraling into deep economic crisis’s. Poverty, Unemployment and the INFLATION. The public demands the government to control it, blames it for the failure and elects a new government. The new government comes with the promise to control it but no governments able to do it. Fortunately however now the same cyber technology that gives the worlds Governments the nightmare of growing economic crimes at the same time can also offer a great cyber technological solution to prevent most of it that I explain in the following.

Establishing A MANDATORY Electronic Money Transaction (MEMT) System:
The emerging electronic or the credit card money transaction if pursued deeply and by legislation made mandatory in all money payments and receipts above a given sum, could provide the most effective technological device and the great historical opportunity for the Government to eradicate most of the unlawful or “illicit” money transactions or the corruption.

Under this Mandatory Electronic Money Transaction (MEMT) economic system all commerce trade, business, buying and selling, in the super markets, shops trading goods or any commodities (except in very small trade dealing in small amounts in smallest denominations, in coins) should be made only through the medium of the electronic money. Similarly all wages, salaries, services, incomes, profit, earnings, bills, receipts/payments, deposits made in the same e-money form.

In fact establishing a MEMT based economic system not only possible but also it is INEVITABLE! Its fundamental technologies already in place. Experts predict “Cashless Future” (see its web link in the Recommended reading at the end). In the coming years more and more people begin to conduct their everyday money receipts and payments in electronic transaction. Most importantly the ubiquitous cell phones going to play a major role in this matter. Equipped with a electronic money transaction feature called “Near Field Communication” (NFC), they are entering the market in a big way. These cell phones conduct every day money transactions through its secure biometric password crucial in preventing the accounts identity fraud. This in turn will bring in a basic TRANSPARENCY in all its money transactions. Indeed a biometric password or the “identity” is the essential “PREREQUISITE” for the establishment of a MEMT economic system, which I come to explain in the next section.

A Biometric Identity (BID) For Securing All Bank Financial Accounts:
The MEMT economic system most importantly requires all people in a nation should have a single universal Social SURETY Number (USSN) based on their Biometric Identity (BID) mainly for securing or ensuring all their bank financial accounts. Of course, a person may have a number of accounts in several banks at any places in the nation but they all should basically identified with their single undeniable BID along with their name address and signature in the central USSN office. First and foremost, it should have the basic authority to access the nations each individuals existing bank financial accounts when needed (ordered) for the legal investigation of economic crimes. Together with that authority, it should also have the prime responsibility providing the basic social security, employment or the minimum income guaranty, health insurance, educational aid for every one specially for the weaker sections of the society. Importantly as well, all the tax eligible people, businesses in the nation should submit their total annual income, including the property accounts (like filing income tax return forms) and pay all their taxes under its jurisdiction. Be it the nations top leaders, presidents, prime ministers, corporate tycoons, CEO’s, down to the common man. All should come under this network of the USSN office jurisdiction system.

This BID security over the financial accounts also needs to be applied to all fields of valuable commodity transaction, exchange or the handover including exchange of gift, donations, helps (commodities above a given value) property ownership transfer etc. No barter trade of property, precious metals, valuable artifacts should be allowed. All valuable items a person, organizations, institutions owning registered as property with its records under the USSN’s income tax office.

Such a mandatory electronic money transaction economic system operating under the USSN network that keeps accounts of almost every money transaction would make all individuals and the businesses financial accounts completely open or transparent before the legal or the public scrutiny. It would basically dissuade or deter people from engaging in any of the economic crimes or corruptions because that essentially leaves the electronic money trail as clear evidence that could be impossible for any one to get rid off.

Some Main Economic Crimes It Could Prevent:

Tax fraud and the bribery are the two major economic crimes that this MEMT can undoubtedly prevent. Apart from it, the counterfeit money, money-laundering, ransom money, the cash money robbery/theft/ stealing, etc., will become a thing of the fast in a fully pledged MEMT system where there is absolutely no printed paper Cash currency money to carry it out in the first place! Black marketing, illegal hording, all kinds of smuggling, trafficking, illegal drugs, weapons, mafia, ‘Terrorist Finance’ etc., accounts will get mostly exposed with pin-accuracy under the BID based MEMT economic system (explained above) so those culprits days will be numbered.

Credit card fraud/fake/theft, or the fear of getting it lost and its misuse mostly will disappear. With its BIDN/MEMT network system in place it would be highly difficult for the fraudsters to buy things online with complete anonymity or to commit any of the credit card crimes and to get away with it. After all in such electronic money network system all proceeding money transactions can be immediately traced back to its preceding accounts and all the other accounts that transacted with it would reveal its all round true connections.

Corporate business scams, misappropriation of public funds, developmental project money embezzlement, poverty scheme money swindling, buying of the bureaucracy, police, judiciary, politician for money, none can escape from this constantly vigilant digital money surveillance or scanning technology. On the other hand it could also prevent those malicious, false accusations, allegations of economic crime, corruptions.

It is not possible for me to list out all those economic crimes that it can prevent, in this document. Nevertheless I should finally mention a most important point briefly in this regard. The root-cause of most of the property crimes, murders, sex crimes, social injustices, environmental degradation, violent retaliations many (if not most) times, motivated by or against the surreptitious or the shrouded money transactions that the traditional cash money transaction economic system allows. Replacing it with this new and transparent MEMT economic system can greatly prevent it. Besides all of which, as a bonus, it can also provide the government with an entirely new kind of financial control device to check inflation, stock market crash etc economic crisis's. Not to mention, many (if not most) times the main cause of it lies in the corrupt or unscrupulous trading practices.

Poverty Eradication Achievable Within Few Years:

Poverty eradication would become a definitely possible and achievable goal under this MEMT system within a few years. First of all as I mentioned it before, the prime responsibility of the USSN is to provide the basic social security, employment, the minimum income guaranty, basic food, shelter, education health for all people and the government will have enough money needed to do it. Just imagine the amount of money when almost all tax revenues gets collected by the prevention of all the tax evasion or the fraud alone! It could provide more than enough money for poverty eradication programs. At the same time the USSN system with it biometric ID, would mostly prevent the unscrupulous people from swindling the welfare aid money in the name of poor. Moreover when the basic ground of all those economic crimes gets removed, most of the money that used to drain into that corruption channel, now redirected into the legal economy and into the social developmental programs.

Legitimate Businesses Nothing To Fear:

People who conduct honest, responsible business practices have nothing to fear from this MEMT economic system. In fact, it can very much fulfill the vision of the UN Human Rights Principles particularly the UN Global Compact tenth Principle, which specifically sates: “ Businesses should work against corruption in all its forms, including extortion and bribery”. Responsible businesses would rather greatly benefit from it, because it would create a very conducive atmosphere to practice a corruption free, progressive economy in the absent of the corrupt, criminal business practices (tax fraud, bribe, extortion, etc.) as the latter are the worst enemies of the honest businesses. Most important of all is that there will be no restrictions or limits imposed on people in their legitimate money earnings; profit making or owning money or property of any huge amounts. One can be a billionaire or a trillionear, provided all their businesses money transaction remain transparent under, the MEMT and that information remains open to the democratic public, USSN's legal scrutiny. In fact the Government should encourage businesses, small and big, by providing them with more opportunities, removing many of those trade barriers, hurdles and most importantly by lowering the taxes.

Only Unscrupulous People Will Get Terrified:

It is only the unscrupulous people who engage in the economic crimes, corruptions, illicit business, will get terrified of it because this MEMT leaves behind the concrete records of the electronic money trail as clear as day the light so they can no longer cover-up its tracks and conceal their crimes, so will be caught with its clear evident get duly prosecuted and sent to prison.

Both Are Complimentary For Each Others Success:

Of course this MEMT economic system perhaps would be very difficult to introduce in its infant or initial stages. It also depends up on place-to-place and countries to countries. It will depend on their social economic and the political system and its development. Nevertheless it is far simpler and easier to implement effectively instead of those tens of thousands and legally cumbersome anti-corruption laws! The fundamental difference between the two is that the MEMT is a single wholesome technological solution based on almost fail-safe advanced technology while the latter are hundreds of years old antiquated legal solutions so much fraught with numerous human error and complications. Surprisingly however now they both seems complimentary for each success in the future.

Two Main IT Anti-Corruption Monetary Measures:

Let me begin this once again with the abstract of this entire “IT To Root-Out Corruption” main text first. Most of the economic crimes, corruptions occurs mainly due to the surreptitious, illicit or the hidden money transactions that escape from the public, legal scrutiny. Now the good news is that the Information Technology (IT) today with its innovative digital or the “electronic money transaction” if made mandatory with biometric identity, enables the Government to root-out most economic crimes, known as corruption. It all basically stands upon two main “IT Anti-Corruption Monetary Measures”, which I present in the following:

1).Introduce Mandatory Biometric Identity (MBID) in All Bank Accounts:- The first and foremost important IT Anti-Corruption Monetary Measure that I call upon is to introduce a compulsory or Mandatory Biometric Identity (MBID) along with the name address and signature in all bank accounts.
Thereupon it should be extended into the ownership of valuable properties or assets.

The most important principle of having a MBID for securing or obtaining the bank accounts is first of all to prevent the fake or bogus identity fraud in it. With the MBID one can immediately identify and find out every bank, financial accounts of a (any) person accused of committing an economic crime (be it a tax evasion, bribery, embezzlement and the whole range of it including terrorist financing). Searching it out with a pin-point (BID) accuracy among those banks, properties billions or trillions of records. It is impossible to anyone to fake their Biometric Identity. So the MBID in all bank accounts is the most important perquisite to root-out corruption.

2). Promote Mandatory Electronic Money Transaction (MEMT) Against Cash Currency:- Make it mandatory or obligatory on all people to conduct their every money receipt/payment above a given amount in the form of electronic money transaction through their bank accounts, replacing the old traditional cash paper currency. Most importantly in case they make the cash currency deposits or withdrawals above the given amount then it should undergo enquiry about its detailed accounts and bills. Also the payments for things, services, materials pertaining to important security matters (cell phones, credit cards, recharge, rentals, travels, weapons, explosives etc.) should be only conducted through the e-money or the credit card even its amount remains below the given mandatory money transaction sum. In this MEMT setup, the money payment in bank cheques (Check) to others accounts by all means remains perfectly legitimate.

To make the MEMT more effective as an extension, the Governments needs to phase-out or gradually withdraw the higher denomination currencies from the public. The higher denominations currencies have been conveniently used or grossly misused or end up in committing most and major economic crimes. Besides the absent of it would greatly promote the MEMT due to its various contributing factors including the enquiry placed on the cash currency deposit and withdrawals and the MEMT in the security matters. Most importantly however the banks should continue to have those higher denomination currencies even of very high values; a hundred thousand, million even a billion (Dollar, Euro etc) denomination currency bills. However they should be restricted mainly to exchange only between the banks, financial or the monetary institutions.

Make Biometric Identity Compulsory In All Bank Accounts:

Among the above two “IT Anti-Corruption Monetary Measures” first of all at present, my most important pressing appeal to all, specially to the national Governments, is to come forward in support of a policy to brining in a Compulsory or Mandatory Biometric Identity (MBID) in all bank accounts along with the name address and signature. Most importantly it should be extended to the ownership registration records of valuable property, assets by mandating all the important high amount of money transactions transfers, payments, receipts should be made only through the MBID enabled bank to the bank accounts for the income-tax-return-file and other legal purposes. (In fact, I am told such bank to bank payment guideline regulations, laws exist even today except the MBID in it so the laws remains mostly ineffective in its anti-corruption purpose.) Already, the Government for security reasons makes people to register themselves with their biometric identity for obtaining, passports, voter’s identity, driver’s licenses etc, mainly to prevent the identity fraud, and other crimes. -- The MBID has already entered into the financial system in the online money transaction through the cell phone market in quite a big way for secure payment by a technology called Near Field Communication (NFC). In fact now a days a fully developed biometric identity (finger print, face iris recognition including the photo) considered to be a very important requirement to get this credit card account to prevent the identity theft and the bank account money fraud. Now extending it in all the bank accounts won't be that difficult, actually it seems to be a long overdue in view of the security needs involved.

Of course it won't be as effective without the Mandatory Electronic Money Transaction (MEMT) i.e. making all money transactions (payments receipts) above a given amount only through bank to bank, which is the second IT Anti-Corruption Monetary Measure. Nevertheless this MBID is its perquisite and above all is far more practical, PRAGMATIC, easier to implement compared to the other anti-corruption monetary measures. It can significantly deter the economic crimes so reduce the corruption and necessarily lead into the future fully pledged MBID/MEMT system in which most of the crimes including the terrorism that as we see it today can be eliminated. Some of it explained in the following section.


Anti-Terrorism: MBID/MEMT To Track Down Terrorist:

Besides combating corruption, a fully pledged MBID/MEMT can also work as powerful Anti-terrorism machinery, which can tremendously help the government security agencies to track down the criminals specially the terrorist. When a terrorism investigation ordered, this system can concretely (electronically) trace back every day PHYSICAL movement, location, phone call, contact of the suspect based on his/her every day buying and the money payment for things, services, material that he /she had made, which includes any such things that the suspects left behind the crime scene. This MBID/MENT network leaves behind an unmistakable physical evidence electronic trail on whatever things it touches, which is impossible to get rid off. However This MBID/MEMT system is simply not possible without first establishing a MBID in all bank accounts.

Political Will To Get It Done:

It would not intrude in the peoples private or personal life compared with the other electronic devices that are being used in social security for ex; the CC camera's. It would be more like people having a most important cell-phone ID number. There are already more stringent legislations in place that rules, laws that the citizens made to obey as they are legally obliged to submit all their property, money transactions, true accounts before the public or the legal authorities and not to engage in the economic crimes. Today there exist this innovative electronic credit card digital or E-money transaction technology to make it happen. It is now for all the people to see to it that this innovative IT develops to its fullest productive potential that includes its deployment in the prevention of almost all economic crimes, corruptions. What is really needed is the political will to get it done.

Future of Potential Growth:

Along with the Government its concerned legislatures, departments also the private sector mainly the financial institutions, banks, credit card companies combined with the E-commerce/business, online companies, IT biometric sector, have to take the pivotal role in the construction of the building blocks of this system. They will have the enormous potential for growth and a great social responsibility as well to encourage people to participate more and more into this MENT economic system of the future.


A SOCIALIST Revolution Without the Abolition of PRIVATE PROPERTY:

Abolition of cash (paper) currency money and making all money transaction in electronic would bring in a more “just” economic system. A new kind of Democratic Republic Socialist Revolution without the abolition of 'private ownership of means of production' or the "Private Property". A blend of benevolent capitalism and socialism.


Valerian Texeira.
St. Joseph Nagar, Jeppu
Mangalore –575002
INDIA.

Recommended Reading -Web links

Special Reading on E-Money

‘The Potential for a Cashless Future’. BBC Click On Line . http://news.bbc.co.uk/2/hi/programmes/click_online/7308362

Anti-Corruption UN Agencies

United Nations Global Compact: http://www.unglobalcompact.org/index.html
Anti-Corruption. Tenth Principle-10 http://www.unglobalcompact.org/AboutTheGC/TheTenPrinciples/principle10.html

UN Office on Drug and Crime: http://www.unodc.org/unodc/index.html

© Copyright 2008. All rights of this publication reserved by the author. First Published on the month of February 2008. This document material information can be feely used for educational , social awareness and other such purposes by mentioning its authors name, except for the commercial use one must obtain permission from the author.
Latest revision and updated on September 16, 2008.
Valerian Texeira. St. Joseph Nagar, Jeppu Mangalore -575002 INDIA