Herve Falciani, a well-known whistleblower, has come up with a different approach to fight fraud and money laundering and that is with cryptocurrency and the blockchain technology.
The former systems engineer at HSBC, who is currently living in Spain in a self-imposed exile, has teamed up with fintech experts and Spanish academics to develop a cryptocurrency that will be easily regulated.
Falciani, who leaked client data which set off a chain of high profile tax investigations, is today working towards the launch of a token called Tabu which is expected to be “ethical” and traceable as a result of a certificate displaying its clean record.
“What happens with any innovation or any technology is that it can be used in the bad way or maybe used in a friendly way with a social impact, positive social impact,” said Falciani in an interview.
The project is being handled by Tactical Whistleblowers, a non-profit entity established in Spain by Falciani. Present in the group are academics of various disciplines, with mathematicians making up the majority, from the Valencia Polytechnic University located in eastern Spain.
The year 2018 made it ten years after the “Falciani List” leak. That same year, the second extradition request made by Switzerland for Falciani was rejected by the Spanish high court. According to Falciani, the renewed public attention was helpful in drawing the attention of investors to Tabu. In his words: “If it wasn’t for that, you wouldn’t have heard about the cryptocurrency project I was into.”
There are 5 million Tabu tokens that are ready to be offered to investors immediately the regulator of the Spanish market gives a go ahead. These tokens are worth 2 million euros ($2.3 million).
A Better System For Procurement Contracts
Herve Falciani also has in the pipeline another initiative, based on the blockchain technology, for public administrations that will ensure that all electronic procurements are double-checked. This innovation will serve many countries in tackling fraudulent schemes and overbilling. Speaking about the new system by name Aletheia, he said:
“Technically and financially this opens the doors to improve the procurement systems. Because in public procurement we have a huge opportunity to spare money.”
While talking about the need for the double-checks and why it will eliminate most fraud risks, he said: “Fake information is the basis of any kind of fraud … The same way that we have to deal with fake news, the same technology can applied to fake invoices.”
Falciani described his jail experience before he was extradited as one that unveiled new perspectives to him. He said: “Jail, it’s supposed to be a nightmare to everyone and to me it was a means for an end … Even there, I learned many things.”