Reps Committee to Summon Binance for Alleged Financial Crimes

The House of Representatives Committee on Financial Crimes has set its sights on Binance Holdings Limited, a Digital Assets Exchange operating in Nigeria.

The committee, led by Chairman Hon. Ginger Onwusibe, has accused the company of operating for over six years without adhering to financial regulatory frameworks and exploiting Nigerian citizens.

A coalition of civil society organizations, including the Niger Delta Youth Council Worldwide and the Empowerment for Unemployed Youths, has brought these allegations to the attention of the committee.

The group claims that Binance has been committing various financial crimes and disregarding the country’s laws governing business and financial operations.

The committee had previously summoned the Managing Director of Binance, Richard Teng, to a public hearing on December 18, 2023.

However, instead of the management team, a group of lawyers appeared on behalf of the company. The committee dismissed the legal team, as the invitation was specifically addressed to the Managing Director.

A new hearing date was set for February 19, 2024, but once again, the company sent a legal team, claiming they needed more time to review the petition.

During a pre-hearing meeting, the committee read out the alleged infractions to the representatives of Binance.

The company was accused of tax evasion, money laundering, and even financing terrorism – all serious charges that could have significant consequences for the firm and its operations in Nigeria.

In a statement, Chairman Onwusibe emphasized the committee’s commitment to protecting Nigerian citizens and the country’s finances, particularly in light of the current economic challenges.

He also stressed the importance of holding foreign companies accountable for their actions and ensuring that they comply with local laws and regulations.

The House Committee has now given Binance a 7-day ultimatum to provide the necessary documents and correspondence and appear before the committee on or before March 4, 2024.

Failure to comply could result in the committee invoking its constitutional powers and imposing sanctions on the company.

This ongoing situation highlights the importance of regulatory compliance for businesses operating in Nigeria and the potential consequences of disregarding local laws.

As the House of Representatives Committee on Financial Crimes continues its investigation, it remains to be seen how Binance will respond and whether the company will face any repercussions for its alleged actions.