Nigeria’s House of Representatives Committee on Financial Crimes Summons Binance CEO
Nigeria’s House of Representatives Committee on Financial Crimes has issued an ultimatum to the new CEO of Binance, Richard Teng, demanding his appearance before the committee to address concerns about the company’s lax Know Your Customer (KYC) and Anti-Money Laundering (AML) policies. The committee suspects that these policies may have facilitated terrorism financing and money laundering activities. Committee Chairman Ginger Onwusibe warned Teng that failure to comply with the summons would result in the committee taking appropriate measures.
Committee’s Previous Attempts to Summon Teng
This is not the first time that the House of Representatives Committee on Financial Crimes has attempted to summon Richard Teng. In December 2023, the committee requested Teng’s attendance at a hearing but received no response. The committee is determined to protect Nigeria’s finances and hold accountable those involved in alleged terrorism financing, money laundering, and tax evasion activities.
Binance Under Scrutiny in Nigeria
Nigerian authorities have been closely scrutinizing Binance in recent weeks as they grapple with the risks and benefits associated with increased cryptocurrency adoption in the country. In February, Nigerian telecommunications firms were instructed to block access to Binance and Coinbase. Presidential advisor Mr. Bayo Onanuga attributed the depreciation of the Nigerian naira to market manipulation by crypto exchanges and called for action from the Economic and Financial Crimes Commission (EFCC) and the central bank.
However, many Nigerians in the crypto industry believe that the government is solely responsible for the depreciation of the naira.
In response to mounting pressure, Nigerian authorities detained two Binance executives and seized their passports. Binance retaliated by delisting the naira from its peer-to-peer trading service. The company now faces a $10 billion fine and ongoing investigations into alleged money laundering offenses.
Conclusion: Binance CEO Summoned Amidst Crime Concerns
Nigeria’s House of Representatives Committee on Financial Crimes is determined to hold Binance accountable for its alleged involvement in terrorism financing and money laundering. By summoning the new CEO, Richard Teng, the committee aims to address concerns about the company’s lax KYC and AML policies. Binance is facing increasing scrutiny in Nigeria, with authorities taking actions such as blocking access to the platform and detaining its executives. As the investigations continue, the outcome could have significant implications for Binance and the cryptocurrency industry in Nigeria.
By
By
By
By