The Nigerian House of Representatives' Financial Crimes Committee has summoned Binance CEO Richard Teng to answer questions surrounding suspicions of terrorism financing and money laundering. Teng has been given until March 4, 2024, to appear before the committee.
This development follows concerns raised by the Central Bank of Nigeria (CBN) in February 2024 regarding "suspicious flows" of funds through the cryptocurrency exchange in the previous year. The committee chairman, Ginger Onwusibe, expressed his disappointment at Teng's previous lack of attendance, citing an earlier invitation sent in December 2023 that was disregarded.
Onwusibe emphasized the committee's commitment to combating financial crimes and protecting Nigerians, particularly from foreign entities potentially violating the country's financial regulations. He reiterated the committee's authority under the Nigerian constitution to take necessary measures if Binance fails to comply with the summons.
Binance, a major player in the global cryptocurrency market, has faced scrutiny in recent months from various regulatory bodies worldwide. Concerns range from a lack of transparency in operations to potential facilitation of illegal activities.
The company has maintained its commitment to adhering to anti-money laundering (AML) and know-your-customer (KYC) regulations, while expressing a willingness to work with regulators to address their concerns.
It remains unclear whether Teng will appear before the Nigerian committee by the designated deadline. His potential response and the committee's subsequent actions will be closely monitored as the situation unfolds. This development underscores the ongoing global discussions surrounding cryptocurrency regulation and the potential risks associated with the industry, particularly in areas like money laundering and terrorist financing.