Learn how to grind away surface rust when doing body work and restoring a car in this free DIY car-restoration video from our expert mechanic and body shop owner. …

Duration : 0:2:10

Technorati Tags: automotive, body, Car, Classic, hot, repair, Restoration, restore, rod, shop

Classic cars are a part of American culture, especially when you go with a domestic model that got its start in this country. These cars have withstood the test of time and continue to strut their stuff on the roadways today. You can find classics from all makes and models, but some are considered cooler than others. To find a classic car that will get noticed on the road, check out these five favorites. We also have a few shopping tips to help you find the best classic car for you.

1. The Ford Mustang

This car is cool all over, whether you opt for the convertible model or the fastback that is rapidly gaining popularity. The years to shop for in this classic car are generally 1965 and 1966, but you can also find some desirable selections in the 1995 Cobra and the 1965 GT. Cherry red with a white interior is the ideal style, but sexy black is another popular color.

2. The Chevrolet Chevelle

This muscle car is particularly popular in the 1968 Pro Street that was designed shorter and sportier. This car is all about power with a massive big-block engine and plenty of horsepower to boast about. Because this car is still in great demand, it can be easy to get a lemon if you are not careful. If you are in the market for a Chevelle, proceed with caution to ensure that you get your money’s worth.

3. The Chevrolet Impala

Chevy is the car manufacturer with some of the best classic car potential, and the Impala is another example of that. The SS from 1962 is a brilliant combination of class and muscle, with the convertibles adding a sporting flair. If you go with this model, make sure you choose a car with hydraulic rams since this vehicle tends to run a little too low to the ground without them.

4. The VW Beetle

No, this car is not domestic, but the huge number of them on American roads would suggest otherwise. Did anyone else play the road trip game where you counted the number of beetles that you find on the road? Today, this model is still just as popular, with used cars getting snatched up almost as fast as the originals. The late sixty and early seventy models are in the highest demand, with the convertibles weighing in as a popular choice.

5. The Chevrolet Camaro

There are few things sexier than a Chevrolet Camaro, no matter what year model you choose. However, the designs from the late sixties are some of the most popular, with speed, handling and looks all taken into consideration. The popularity of the model has made it a bit hit or miss in the resale arena, so proceed with caution if you are in the market for one of these.

Classic cars are a fun way to drive with vintage style, and many of these models are still hot on the market today. Check out the resales in your area to find the classic car of your dreams.

Nathan Martyn
http://www.articlesbase.com/automotive-articles/five-most-popular-classic-cars-672415.html

<!– @page { size: 8.5in 11in; margin: 0.79in } P { margin-bottom: 0.08in } –>

Experience luxury and comfort like never before! Book a room at the Taj Mahal Hotel in New Delhi. Belonging to the renowned Taj Hotel Group, this hotel is an ideal lodging destination if you are wishing to spend some days amidst optimum luxury and comfort. Located within easy reach to the city center, the hotel is an ideal place for both tourists and corporate travelers.

Accommodation in Taj Mahal Hotel

Being one of the well known luxury hotels in New Delhi, The Taj Mahal Hotel offers state-of-the-art accommodation with a blend of style and comfort. The hotel consists of 422 guest rooms and 40 luxury suites. You can choose your ideal lodging center from:

• Deluxe and Luxury Rooms

• Taj Club Rooms

• Executive Suites

• Deluxe Suites

• Luxury Suites

• Grand Presidential Suites

You will simply cherish the lodging facilities in the hotel. All rooms are air conditioned and have en suite bathrooms with stylish toiletries and bath fittings. The interior of the rooms are decorated with a traditional touch with antique furniture. The private balconies or terraces in the rooms offer splendid view of the sprawling lawns and the surroundings. The presidential suites have separate master bed room, dining room, living room, library, workout area and drawing rooms.

Other lodging facilities offered here are:

• Satellite television

• International direct dial telephone

• Wake up call

• Alarm clock

• Music system

• Mini bar

• Ironing facilities

• Refrigerator

• Tea and coffee making facilities

• Hot and cold water

• 24 hour room service

Dining at Taj Mahal Hotel

You will simply love dining here. The hotel is home to a wide range of restaurants and bars which serve mouth watering cuisine from India and other parts of the world. They are:

Emperor’s Lounge: It serves various types of delicious desserts and confectionaries.

House of Ming: It serves varied range of mouth watering Chinese and Cantonese dishes.

Machan: It serves various types of delicious Indian, Asian and other delicacies.

Varq: Ranking among the well known restaurants in the city, it serves a wide range of mouth watering Indian and Mughlai dishes.

The Grill Room: An ideal place to dine, it is an ideal place to have a taste of mouth watering European and Italian delicacies.

Wasabi By Morimoto: It serves various types of Japanese dishes.

Ricks: It is a perfect place to have a taste of wide range of refreshing liquor, juices and cocktails.

Business and Conference Facilities at Taj Mahal Hotel

Business and conference facilities in the hotel are well developed to make your events a grand success. There are 4 well equipped meeting and conference rooms which can host high profile seminars, conferences and corporate events. Banquets and receptions are also organized in the Terrace Garden and Poolside Lawn.

Health and Recreation at Taj Mahal Hotel

The hotel offers an array of fitness and recreational facilities like swimming pools, spa, yoga sessions, and health clubs and so on. The hotel’s beauty salon is an ideal place to have a grooming session.

Other Facilities and Services

In addition to these, you can also enjoy other facilities like car parking and rental services, airport transportation services, currency exchange, laundry facilities, security services, smoke detectors, child care, gift shop, concierge and disabled care services and lots more.

Sumit Singh
http://www.articlesbase.com/travel-articles/taj-mahal-hotel-get-the-best-deal-of-comfort-and-luxury-719496.html

Have you heard about the new type of evening bag called a ‘clutch’? No, its nothing to do with changing the gears of your car, its more to do with changing the gear that you wear on a night out! Evening bags have been around for a while, a normal hand bag does just not cut it when you don’t want to be dragging something heavy around town all night, this is when a smaller bag comes in handy - that is the clutch. The clutch bag is a great invention for carrying just a few essentials such as lip-gloss, money, mobile phone and your keys - what more could a girl need on a night out?

Evening bags come in a massive variety of designs and materials, ranging from elegant silk bags to more robust leather ones. A summer evening would be a good time to bust out that silk number, whilst winter would be more suited to a sturdy leather bag. The designs can also match the occasion, from Chinese to antique; there really is a different design for every night of the year. What you really need to do first is to decide upon where you are going to be and what you are going to wear, only then can you make a decision on what type of bag you need to bring.

Coach Clutch is a smaller bag that comes in handy. Clutch bag is a simple bag that women love to carry when they come to an evening party. They just need to put cash money, lips-stick, cell phone and keys into it and they are ready to go out to a party.

Coach Clutch Handbags are suitable for women who want to look classy when they come to a party. You can put all you need into it. You don’t want to bring a big handbag to go to a party just to put few things you need. You don’t need to bring a wallet as well when you have a clutch bag that fits all you need.

You can pull out your ID and credit cards from your wallet and put them in a secret compartment of your Coach Clutch Bag . You can also put the most important make-up such as lipstick and comb. Don’t forget your cell phone and keys as well. All of them will fit into your clutch bag.

Coach Clutch Handbags come in many different sizes, shapes and colors. Choose the size and shape that will fit all you need. The design and color are also important to match your fashion style.

Where should you start shopping? Moreover, how are you able to get the best price? Here are some pointers that may help you find the right handbag at the right price for your financial position. Let the purchaser beware! Not all handbags that are sold under the designer’s brand are Coach Clutch Handbags indeed authentic!

Jasper-plm ltd

"Woah, what the hell happened to him?"

"Well he was on his way over to my house the other day and when he arrived outside the house he didn’t brake properly and boom - He hit the curb, the car flipped over and he crashed through the sunroof - Went flying through the air and smashed through my upstairs bedroom window."

"What a horrible way to die!"

"No no, he survived that, that didn’t kill him at all. So, he’s landed in my upstairs bedroom and he’s all covered in broken glass on the floor. Then, he spots the big old antique wardrobe we have in the room and reaches up for the handle to try to pull himself up. He’s just dragging himself up when bang, this massive wardrobe comes crashing down on top of him, crushing him and breaking most of his bones."

"What a way to go, that’s terrible!"

"No no, that didn’t kill him he survived that. He managed to get the wardrobe off him and crawls out onto the landing, he tries to pull himself up on the banister but under his weight, the banister breaks and he goes falling down on to the first floor. In mid air, all the broken banister poles spin and fall on him, pinning him to the floor, sticking right through him."

"Now that is the most unfortunate way to go!"

"No no, that didn’t kill him, he even survived that. So he’s on the downstairs landing, just beside the kitchen. He crawls in to the kitchen, tries to pull himself up on the stove, but reached for a big pot of boiling hot water, whoosh, the whole thing came down on him and burned most of his skin off him."

"Man, what a way to go!"

"No no, he survived that, he survived that! He’s lying on the ground, covered in boiling water and he spots the phone and tries to pull himself up, to call for help, but instead he grabs the light switch and pulls the whole thing off the wall and the water and electricity didn’t mix and so he got electrocuted, wallop, 10,000 volts shot through him."

"Now that is one awful way to go!"

"No no, he survived that…"

"Hold on now, just how the hell did he die?"

"I shot him!"

"You shot him? What the hell did you shoot him for?"

"He was wrecking my house."

2.Woman: Is there a problem, Officer?

Officer: Ma’am, you were speeding.

Woman: Oh, I see.

Officer: Can I see your license please?

Woman: I’d give it to you but I don’t have one.

Officer: Don’t have one?

Woman: Lost it 4 times for drunk driving.

Officer: I see…Can I see your vehicle registration papers please.

Woman: I can’t do that.

Officer: Why not?

Woman: I stole this car.

Officer: Stole it?

Woman: Yes, and I killed and hacked up the owner.

Officer: You what?

Woman: His body parts are in plastic bags in the trunk if you want
to see.

The Officer looks at the woman, slowly backs away to his car, and
calls for back up. Within minutes 5 police cars circle the car. A senior
officer slowly approaches the car, clasping his half drawn gun.

Officer 2: Ma’am, could you step out of your vehicle please!

The woman steps out of her vehicle.

Woman: Is there a problem sir?

Officer 2: One of my officers told me that you have stolen this
car and murdered the owner.

Woman: Murdered the owner?

Officer 2: Yes, could you please open the trunk of your car,
please.

The woman opens the trunk, revealing nothing but an empty trunk.

Officer 2: Is this your car, ma’am?

Woman: Yes, here are the registration papers.

The first officer is stunned.

Officer 2: One of my officers claims that you do not have a driving
license.

The woman digs into her handbag and pulls out a clutch purse and
hands it to the officer. The officer snaps open the clutch purse and
examines the license. He looks quite puzzled.

Officer 2: Thank you ma’am, one of my officers told me you didn’t
have a license, that you stole this car, and that you murdered and hacked
up the owner.

Woman: Betcha the lying bastard told you I was speeding too

I think im gonna try the last one if ever a cop stops me for speeding. Lmao

LMFAO haha i love the first one
lol im guna try the second one :]P

If you live in the U.S., your chances of being killed by a tsunami are the same (or less!) than being taken out by an asteroid impact. Get a dose of reality as you see just what are the odds of random events happening to you, according to various sources.

The Odds of Dying in …

· Motor vehicle: 1-in-84
· Motorcyle: 1-in-938
· Bicycle: 1-in-4,472
· Air travel: 1-in-5,552
· Bus: 1-in-94,242
· Train: 1-in-139,617

The Odds of Drowning in …

· Natural water: 1-in-2,828
· Swimming pool: 1-in-6,031
· Bath tub: 1-in-9,377

The Odds of …

· Dating a millionaire: 215-to-1
· Writing NYTimes bestseller: 220-to-1
· Finding four-leaf clover on 1st try: 10,000-to-1
· Getting Rich on ‘Antiques Roadshow’: 60,000-to-1
· Dating a supermodel: 88,000-to-1

The Odds You’ll …

· Be a Victim of ID Theft: 1-in-465
· Have an adverse reaction to a prescription drug: 1-in-3,000
· Be sued by the RIAA for illegal filesharing: 1-in-4,666
· Be wrongly declared dead by a Social Security data entry mistake:
1-in-23,483
· Die from a food-borne illness this year: 1-in-33,333

The Odds of dying in a …

· Flood: 1-in-30,000
· Tornado: 1-in-60,000
· Lightning strike: 1-in-83,930
· Earthquake: 1-in-131,890
· Asteroid impact: 1-in-200,000*
· Tsunami: 1-in-500,000

The Odds of Injury Requiring Medical Treatment From:

· Lyme’s disease: 1-in-18,100
· Snake bite: 1-in-25,300
· West Nile: 1-in-68,500
· Shark attack: 1-in-6,000,000

The Odds of Being a Victim of …

· Assault by Firearm*: 1-in-325
· Poisoning*: 1-in-1,400
· Murder this year: 1-in-16,917
· Strangulation*: 1-in-34,424

The Odds of Believing …

· That it’s better to be poor and thin, than rich and fat: 2-in-3*
· You are "extremely stressed": 1-in-3
· That the best way to get rich is to win the lottery: 1-in-5
· Your tattoo was a mistake**: 1-in-7
· You saw a UFO: 1-in-7

The Odds That You…

· Have fallen asleep or have felt very sleepy at work in the last month: 1-in-3
· Work at a job where you never get a paid day off: 1-in-4
· Plan to take sick days this summer to go to the beach or go shopping: 3-in-10
· Do not have health insurance: 1-in-7
· Leave home for your commute to work before 6 a.m. to beat traffic: 1-in-8

The Odds …

· Your child will be involved in a school bus accident this year: 1-in-29,180
· Your baby will be delivered by
c-section this year: 1-in-3
· You cannot find Iraq on a map, if you are between age 18 to 24: 2-in-3
· You will have a car crash within the first year of driving (if you are 16 years old): 1-in-5

The Odds of Dying From …

· Heart disease: 1-in-438
· Cancer this year: 1-in-600
· Staph infection: 1-in-16,146
· Measles: 1-in-300,000,000

Of course….but being the 1 in 84 that gets killed in a motor vehicle accidents kinda f*cks up all the other odds…

I wonder what the odds are in winning the lottery, dating a supermodel on the day you plan to take sick and while she’s telling you about her heart disease you get hit by an asteroid?

Many vintage car collectors enjoy the classic nostalgic and artistic feeling associated with vintage car, not to mention the triumph achievement of being able to restore and maintain a vintage car into show worthy masterpiece. Though as much as we wanted to, the majority of us can’t be splashing money over a whole entourage of vintage cars, as well as do a full time job restoring every one of them to their full glory. In fact some of the legendary Vintage Cars can be hard to come by since they are not in production so long ago, not to mention that if it does, it probably fetch a “legendary” price tag as well. So what is the next best option?

Aside from a few actual vintage cars that you cherish, spending countless hours and effort to build it back to pristine condition. Vintage car models, whether die cast or plastic fabricated, can be a great extension of your passion as well. Vintage car models can be easily purchased from online websites, mail order catalogues or ebay for those auction junkies that are addicted the adrenalin rush of bidding. And if you could not find the model you covert, you would even order it custom made, simply by performing a search on Google could yield a list of customizers out there, although it would be good to do some further research on the net to check their quality of work from their past customers. Some of the most famous die cast series of vintage models the Yesteryear series by Matchbox & Lesney which is a rendition of classic vehicles from the steam and early automotive eras

And since vintage car models are definitely cheaper to come by, you could easily build up an impressive collection with a low budget. Vintage car models are easy to showcase and does not take up a lot of space, thus would be an ideal solution for apartment dwellers. Collections of vintage car models makes an impressive adornment to grace your living hall, and can serve as an excellent conversation piece when entertaining visiting guest.  It is also easy to admire and examine your vintage car models in comfort right at your own home.

Vintage car models are also hussle free and easy to upkeep, they would only require a can of spray polish and a polishing cloth to keep it nice and tidy. Though gentle handling might be required as many small delicate parts are involved.

Katherina Falernova
http://www.articlesbase.com/collecting-articles/all-kinds-of-reasons-to-collect-vintage-car-models-721780.html

By H. Paul Leyva, J.D., C.AM.C.

October 1, 2008

International Narcotics Control Strategy Report (INCSR), March, 2008:

 ” … there are already indications that money launderers and those that finance terrorism will avail themselves of the new m-payment systems.”

NEW YORK, NY—Brittany has never filed an income tax return to report her $200,000.00+ income as a high-class call girl. To continue to hide her illegal profits from the IRS and law enforcement, Brittany added an m-payment function to her mobile phones and PDA. With the m-payment feature in place, she now lives virtually cash-free. For example, Brittany asks her clients for the “e,” (street slang for electronic mobile payment, or e-pay). “E” is a text message-like transfer of funds from a client’s mobile phone m-account to the m-account contained in Brittany’s phone. After hours, Brittany’s Blackberry now functions as a debit card for all of her spending needs: shopping at Nordstrom’s to buy that designer purse, sending a car payment for her new Mercedes-Benz via text message, and clubbing all night with her friends.  Today, Brittany earned $800 for her services. Before m-payment technology, she had no other choice but to make suspicious daily cash deposits into her bank accounts. With the advent of m-payment, she no longer worries about anyone tracing her bank activity. As a safety precaution, Brittany destroys the SIM memory cards from her phones and PDA devices at the end of each week and replaces them with new ones. As a result, if she ever gets arrested for her activities, no digital evidence of her occupation, income, or lifestyle remains.

LOGAN SQUARE, CHICAGO, IL—Alex, an accountant by day and drug user by night, uses his PC to transfer $400 from his personal checking account to his mobile phone’s m-payment account. Alex is in need of Ecstasy from his dealer. Per their standing arrangement, buyer and supplier meet at the local café on the corner of California Avenue and Logan Square Boulevard. As usual, the dealer has cleverly hidden the Ecstasy in an empty cup of coffee, and Alex transfers the “e” via text message to the supplier’s mobile phone. When the transaction is complete, Alex slips away to plan his evening.

As the dealer enjoys his latte, he uses his mobile phone to text the funds to a bank in the Cayman Islands, where the deposit will easily get lost in the multitude of other small value transfers. Once the transaction is complete, the supplier gasps a sigh of relief because he knows he is safe. If a rival gang member tries to steal the cash, he will find no trace of the money. Similarly, if the police tried to apprehend him, by pressing the “Delete Transaction History” function on his cell phone—evidence-erasing software that he downloaded from the net—all incriminating evidence is gone. With no evidence of his crime, the authorities would be forced to let the dealer go.

NAIROBI, KENYA—International Press: August 7th. On the anniversary of the suicide bomb that killed more than two hundred people at the U.S. Embassy in Nairobi, yet another suicide bomber kills fifty-eight people near the rebuilt U.S. Embassy in Kenya. At this point, the authorities are unable to determine the identity of the terrorist or group responsible for this attack, but many believe it to be the work of Al Qaeda. The FBI officer-in-charge and top Kenyan Security officials admit that they found the remains of a pre-paid m-payment mobile phone within the wreckage; however, since these devices are unregistered, the phone could have been purchased anywhere and by anyone. In Kenya as well as in many other parts of Africa, the use of mobile phones and m-payment technology as miniature banking devices is commonplace. Critics have reiterated that m-payment technology makes it easier for terrorists to send and receive transfers of funds via text message transmission.

These scenarios exemplify the warnings issued in the March 2008 International Narcotics Control Strategy Report (INCSR) entitled “Mobile Payments: A Growing Threat,” which describes the potential exploitation of m-payment technology by money launderers, criminals, and terrorists.

What is m-payment? How does it work? Does it already exist in other countries? How can money launderers, criminals, and terrorists exploit this technology to hide their illicit activities? Most importantly, what steps can the United States and other countries take to curtail the potential abuses of m-payment?

“Some of the most innovative are electronic payment products which include mobile payments or m-payments … Driven by a remarkable convergence of the financial and telecommunications sectors, the rapid global growth of m-payments demands particular attention. M-payments can take many forms but are commonly point of sale payments made through a mobile device such as a cellular phone, a smart phone, or a personal digital assistant (PDA).”

                                                            -INCSR, March, 2008

The Virtual Wallet

M-payment (mobile payment) is synonymous with the terms m-commerce, m-accounts, m-wallet, m-banking, e-money, or digital cash. For the sake of this article, the more widely accepted term “m-payment” will be used. The best way to envision this relatively exciting technology is to imagine a time in which your mobile phone or PDA will act like a wallet. Furthermore, it will be a wallet that not only allows you to withdraw money from it to pay for goods and services, but also enables you to deposit money into it—thus making this monetary device even more flexible and useful than a credit card. The widespread adoption of m-payment could eliminate the need to carry cash, visit an ATM machine, send wire transfers, or even use a credit card.

Currently there are two platforms that facilitate the use of m-payment. The first enables your mobile phone to link to m-accounts, such as your bank account, credit card, internet payment service, or other financial institution. The second makes it possible for mobile phone companies to act as banks and allows customers to deposit and withdraw funds using their mobile accounts. Although this service is not yet available in the United States, m-payment has already enjoyed acceptance and success in countries such as Japan, Korea, and the Philippines. M-payment technology is also beginning to thrive in South Africa, the Democratic Republic of the Congo, and Kenya.

At present no special hardware is required to utilize m-payment. A subscriber can surf the Web for an internet-based m-payment service and then download the necessary software onto almost any existing mobile phone. M-payment software uses existing text-messaging technology to send and receive funds, confirm payments and credits, and check balances.

The Virtual ATM

Imagine going to a McDonalds (or nearly any retailer) to buy lunch and then asking the cashier for an extra $50 (or more) in cash. For a small fee, the McDonalds cashier will not only charge a customer’s m-account for the hamburger, soda, and fries, but will also ring up the $50 in cash that he or she requested. Similar to debit cards, there is no need to locate an ATM Machine or pay high banking fees.

Person to Person (PTP) Transfers

Person to person (PTP) transfers are also possible. For example, friends, family, and private parties involved in business transactions can transfer funds to each other via their mobile phones. A mother can send her teenage daughter’s allowance via text message. Employers can text message wages to their employees’ mobile phones. After winning an auction on EBay, a buyer can text the payment to the seller. Or, an individual wanders into a garage sale only to find that beautiful antique he has been seeking, but he has no cash. Moreover, the seller does not accept credit cards. The solution is simple: the buyer text messages the payment directly to the seller’s mobile phone. The possibilities are endless.

Wire Transfers via Mobile Phone

The World Bank estimates that global remittances (i.e. international wire transfers) exceed one quarter of a trillion dollars annually. Increasingly, in many areas, m-payments provide a new option to expatriates and “guest workers” that wish to send part of their wages home to support their families.

In the United States, many migrant workers from Mexico and Central and South America use wire transfer services such as Western Union and Money Gram to send money to their relatives abroad. In 2005 alone, funds transferred to Mexico from the United States totaled more than $20 billion. Unfortunately these wire services come with high fees, and some of the recipient banks also charge fees for the transaction as well. Furthermore, in rural areas abroad many people do not have access to banks. With m-payment technology, a migrant worker can literally text message the payment to his relative’s mobile phone, thus circumventing the exorbitant fees charged by wire transfer services and receiving banks.

Virtual Traveler’s Check

            Another amazing feature of m-payment technology is that it allows a mobile phone to act as a virtual traveler’s check. Before leaving on a family vacation, a subscriber can deposit money into his mobile phone’s m-payment account then withdraw the funds as needed during the trip. Consumers will no longer need to purchase travelers checks or travel with significant amounts of cash.

Contract-Less, or Touch and Go, Mobile Phones

Beyond their use for text messaging to send and receive funds, mobile phones can also be placed in “contract-less” mode. To activate this feature, a special chip can be attached to or inserted into the phone. It is likely that future cell phones will come with this feature already built into it. When a consumer wishes to make a purchase, he or she can simply “swipe” a mobile phone over a cashier’s scanning device and complete the transaction. With the “swipe” or “touch and go” feature, no signature or additional data entry is necessary at the cash register.

Pre-Paid Mobile Phones and M-Payment

Low-income consumers or those with poor credit who would not be eligible for monthly phone contracts or credit cards can use pre-paid mobile phones to conduct m-payments. These individuals can load pre-paid cards holding various monetary denominations ($50, $100, $250, or more) onto a mobile phone to enable the device to be used as a virtual wallet. As in previous examples, friends and family can also transfer funds to the pre-paid phone via text message as well.

Potential Displacement of ATMs, Wire Transfer Companies, and Credit Cards?

As with m-payment accounts holders in other parts of the world, Americans will undoubtedly also embrace the convenience and cost savings of this virtual wallet. With the continued proliferation of m-payment technology, it may be argued that m-payment services could actually result in the death of ATM machines, wire transfer companies, and high interest rate credit card fees. This prediction is well-founded when one considers that the United States contains approximately 250 million mobile phone subscribers—a number equal to 82 percent of the population—and over three billion mobile phones are currently in use worldwide. In addition to these facts, The Wireless Association reported in its 2007 Wireless Industry Survey that consumers send almost one billion text messages each day worldwide.

Even more compelling is the convenience offered by this service. Given this technology, customers no longer have to locate an ATM machine in order to withdraw money. Using a PC, they can transfer funds from their bank accounts directly to their mobile phone accounts. When a migrant worker needs to send money to his family abroad, he or she can merely speed-dial the funds directly from his mobile phone to a relative’s phone. An individual will no longer need to drive to the local Western Union outlet to complete the transaction. In contrast to high interest credit cards, m-payment service providers will offer competitive rates, discounts, or other incentives to attract new customers. Finally, another cause for concern on the part of banks and wire transfer companies is the fact that mobile phones have already contributed to the demise of pay phones, cameras, and retail music stores.

PayPal Facilitates a Fundamental Shift in M-Payment

In a report published by Juniper Research, a respected consultancy group that provides analytical services to the global hi-tech communications sector, Senior Analyst Alan Goode concluded that the entry of PayPal into the micro m-payment and m-retail sector, “will only serve to facilitate a fundamental shift in global consumer payment services now and into the future.” Moreover, Goode predicts that “mobile payments are set to rise to $10 billion in total revenue by 2010.”

Other players that have already entered the m-payment market include Google’s G-Pay, Firehorn Holdings, LLC, mFoundry Inc, and Obopay, Inc. The largest provider is PayPal with more than 100 million Internet accounts worldwide.

 “There are numerous money laundering and terrorism financing implications [of m-payments], but digital value smurfing represents a very clear threat.”

                                                            -INCSR, March, 2008

Smurfing

The dark side of m-payment, if the service remains unregulated, will enable money launderers, criminals, and terrorists to exploit this new technology. In specific, this new technology will undoubtedly facilitate smurfing.

It is generally known that astute money launderers, criminals, and terrorists have always been willing to keep their financial transactions under $1,000 per day to avoid financial reporting requirements. One way to hide money is by using multiple “smurfs” or “runners” to make deposits, purchase money orders, traveler’s checks, or other transactions involving illicit or “dirty” money. Smurfing can be accomplished by spreading small denomination drug payments, or contributions to terrorist causes, across various remittance centers or multiple bank accounts. In essence, smurfing breaks down illegal proceeds into small amounts that can be moved with less risk of attracting the authorities’ attention.

For instance, a drug dealer or terrorist can order ten different soldiers, or “smurfs,” to open ten different bank accounts, or conduct ten different financial transactions per day. After the accounts are open, the drug dealer or terrorist orders his smurfs to deposit amounts less than $999 per day—for example, $756 one day, $922 another day, and so on. By ensuring that the bank deposits, or other financial transactions, fall below the $1,000 threshold, they can avoid suspicion and prevent the triggering of financial reporting requirements. In this example, ten different smurfs with ten different bank accounts who deposit an average of $850 per day can launder $2.21 million annually.

Although more sophisticated detection systems, increased government oversight, and heavier penalties have slowed down the practice of “smurfing” in recent years, this system remains a fundamental method for moving cash and cash equivalents.

Digital Value Smurfing (DVS)

M-payment with digital value removes the fundamental element of money laundering: cash. In the future, money launderers, drug dealers, and other criminals will no longer demand cash for their products or services; instead, they will demand digital payment sent via text message. With digital value, multiple smurfs will no longer be needed to make suspicious cash deposits. Criminals will be able to bypass regulated banks and their financial reporting requirements and exchange dirty money for digital value in the form of stored value cards or mobile payment credits. Moreover, with digital value instead of cash, they can instantly send—with a touch of a cell phone keypad—their digital value across the country, around the world, or to secret offshore bank accounts.

A single Digital Value Smurf (DVS) could open multiple m-payment accounts with multiple service providers, such as m-payment bank accounts, Internet payment accounts, and pre-paid mobile phones. Other avenues could include renting cell phones from others, or utilizing false identities to open additional accounts. The number of m-payment accounts that a single DVS could establish is unlimited. Thus, using the same example as above, a single DVS with merely ten different m-payment accounts could arguably launder the same amount of money that it would take ten different smurfs to accomplish.

Other Implications: Facilitation of Tax Evasion by Small Businesses

M-payment technology can facilitate tax evasion. Three billion people around the world own mobile phones, but only one billion possess bank accounts, according to the GSM Association. BearingPoint, a major management and technology consulting company, estimated the unbanked marketplace in the United States alone at $510 billion in 2006.

The fundamental rule in small business accounting is that all financial transactions are conducted through a business checking account provided by banks. For instance, when a sole proprietor, a partnership, or a corporation conducts business, it does so by using a business checking account. As required by law, banks employ the Know Your Customer (KYC) protocols by requesting identification from new customers along with evidence of the business entity (assumed names registration, business license, or articles of incorporation).

With an m-payment account, however, a small business owner can conduct business virtually under the radar. Instead of business deposits, the company can receive e-payments. Furthermore, instead of disbursing expenses through its business checking account, the company can make payments via m-payment. With no paper trail, the unbanked small business owner could easily evade income tax filing requirements, thus depriving the U.S. Treasury of billions of dollars in tax revenue.

“Much work and creative thinking will be required to maintain the advantages NPMs [new payment methods], including m-payments offer, while at the same time preventing exploitation and misuse by money launderers and terrorist financiers and simultaneously protecting user privacy and the integrity of the global financial systems.”

                                                                        -INCSR, March, 2008

M-payment is revolutionary—mainly due to its convenience. This technology will literally change the way consumers pay for goods and services, the way they are compensated, the way they save money, the way they spend it, and the way they send money to family and friends abroad. This service will create new industries and new opportunities. M-payment is also radical because it may represent the final piece of the financial puzzle that moves our world into a cashless society.

With the convenience that m-payment offers, however, comes the potential for criminal misuse. M-payment technology, if unchecked, can be exploited by money launderers and terrorists. Presently, the United States is ill prepared to handle the dark side of m-payment. As the INCSR acknowledged, “The United States has few safeguards against abuse of m-payments.” Moreover, the report also warns that the only applicable federal reporting requirement to providers of stored value cards is the Currency Transaction Report (CTR) rule. A CTR must be filed for all cash transactions greater than $10,000 per day. However, the CTR can be filed up to fifteen days after the transaction has occurred, giving terrorists and criminals enough time to disappear. Although almost all U.S. m-payment service providers are registered as Money Services Businesses (MSB) with the Financial Crimes Enforcement Network (FinCEN), the regulations do not have specific provisions pertaining to them.

New legislation is needed to regulate m-payment service providers. Legislation can include requirements that service providers monitor accounts, enhance suspicious activity reporting, require maximum transaction limits (e.g, $1,000.00 per day), require the registration of pre-pay cell phones with m-payment, and development of new, m-payment specific software to detect suspicious activity.

With m-payment projected to grow to 52 percent by the year 2011, there is ample time to put the necessary safeguards and regulations in place to combat the threat to anti-money laundering.

H. Paul Leyva, J.D., is Certified Anti-Money Laundering Consultant (CAMC) and a student at Thomas Jefferson School of Law, Walter H. & Dorothy B. Diamond, Masters of Law (LL.M) International Tax Program.  Per the request of the distributor, this article was published without footnotes or references.  The original version of this report with all footnotes and references is available upon request.

 

H. Paul Leyva