Binance Officials Face Legal Scrutiny Over Alleged Money Laundering Activities

Binance Officials Face Legal Scrutiny Over Alleged Money Laundering Activities

The Abuja Federal High Court has set a date for the arraignment of two Binance executives, Tigran Gambaryan and Nadeem Anjarwalla, slated for Thursday, pending any alterations to the schedule.

Gambaryan and Anjarwalla will face charges before Justice Emeka Nwite, with separate allegations leveled against each of them.

One set of charges, brought forth by the Economic and Financial Crimes Commission (EFCC), revolves around money laundering and comprises five counts.

The other accusation, lodged by the Federal Inland Revenue Service (FIRS), consists of four counts, pertaining to various tax infractions.

Anjarwalla, who eluded custody on March 22, is to be arraigned before Justice Nwite in absentia.

In the EFCC’s filing dated March 28, the Binance executives stand accused of laundering approximately $35,400,000.

The first count of the charges alleges that between January 2023 and January 2024 in Abuja, the defendants engaged in the specialized business of other financial institutions without holding a valid license.

According to the EFCC, this act violates Section 57(1) and (2) of the Banks and Other Financial Institutions Act (BOFIA) 2020 and is punishable under Section 57(5) of the same Act.

In the FIRS’s charge, filed as FHC/ABJ/CR/115/2024 on March 22, the defendants are accused of committing the offense around February 1 of the current year.

The first count alleges that the defendants failed to register with the FIRS to pay all relevant taxes while providing services to subscribers on their platform (Binance).

This failure, as per the FIRS, contravenes Sections 8 and 29 of the Value Added Tax (VAT) Act of 1993 (as Amended), Section 40 of the FIRS Establishment Act, 2007 (as amended), and Section 94 of the Companies Income Tax Act (as amended).

On March 18, Justice Nwite had mandated Binance to furnish the EFCC with comprehensive data or information concerning all individuals trading on its platform from Nigeria.

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