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New Binance CEO Richard Teng is required to appear before Nigeria’s House of Representatives Committee on Financial Crimes to respond to inquiries regarding his company’s insufficient KYC and AML protocols, which may have contributed to terrorism financing and money laundering.
Committee Chairman Ginger Onwusibe issued this demand to Teng during a session last week, as reported by local sources. Teng was given seven days to appear before the committee, with today being the final day.
Onwusibe further cautioned Teng that the committee would exercise its constitutional authority “to take appropriate measures” should the CEO fail to comply.
This is not the first instance in which this committee has attempted to summon Teng. In a letter dated December 12, 2023, and signed by Onwusibe, the committee requested Teng’s presence at a hearing scheduled for December 18, 2023.
Onwusibe stated that it is the Committee’s responsibility “to protect and defend the country’s finances, particularly now that the nation is facing a recession. The accusations of terrorism financing, money laundering, and tax evasion against Binance are serious.”
He continued: “You cannot operate a company with over 10 million Nigerians on your platform without fulfilling tax obligations and maintaining a physical office where Nigerians can file complaints when they encounter issues with your service. The time of exploitation is over, and all offenders must be held accountable.”
Nigeria Targets Binance
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Binance has been under scrutiny from Nigerian lawmakers for several weeks as the country intensifies its efforts to address the risks and benefits associated with increasing adoption within its borders.
In late February, Nigerian authorities requested telecommunications companies in the country to restrict access to Binance and Coinbase.
At that time, presidential advisor Mr. Bayo Onanuga linked the naira’s decline to market manipulation by cryptocurrency exchanges and urged the Economic and Financial Crimes Commission (EFCC) and the central bank to take action against them.
However, many individuals in Nigeria’s crypto sector believe that the government alone is responsible for the naira’s depreciation.
By the end of February, Nigerian authorities detained two Binance executives and seized their passports. In response, Binance removed the naira from its peer-to-peer (p2p) trading service.
Binance is now facing a $10 billion penalty and ongoing investigations into its purported money laundering activities.
The post Nigeria’s Financial Watchdog Summons Binance CEO Over Crime Concerns appeared first on Cryptonews.
