Mohammed Shosanya

The Central Bank of Nigeria, CBN, has provided Bureau De Change, BDCs, operators with $10,000 at an exchange rate of N1,251 per United States, US, dollar.

This was disclosed in a circular signed by Hassan Mahmud, the CBN Director of Trade and Exchange Department.

The bank instructed the BDCs to offer dollars to qualified customers at a rate not more than 1.5 per cent above the buying price.

The development indicates that BDCs are advised not to sell above N1,269 for each $1.

The circular reads: “We refer to our letter to you,referencedTED/DIR/CON/GOM/001/071 in respect of the above subject wherein the CB approved a second tranche of sale of FX to eligible BDCs.

“We write to inform you of the sale of $10,000 to each BDC at the rate of N1,251/$1. The BDCs are to sell to eligible end users at a spread of not more than 1.5 per cent above the purchase price.”

Mohammed Shosanya

The Federal Government has initiated criminal proceedings against Binance, a prominent cryptocurrency exchange platform.

The charges,according to a press statement issued by Dare Adekanmbi, the Special Adviser, Media to the Executive Chairman, FIRS filed at the Federal High Court in Abuja, were announced on Monday by the Federal Inland Revenue Service (FIRS).

Dare Adekanmbi noted that the lawsuit, designated as suit number FHC/ABJ/CR/115/2024, implicates Binance with a four-count tax evasion accusation.

Joined with the crypto company as second and third defendants in the suit are Tigran Gambaryan and Nadeem Anjarwalla, both senior executives of Binance currently under the custody of the Economic and Financial Crimes Commission (EFCC).

The charges levied against Binance include non-payment of Value-Added Tax (VAT), Company Income Tax, failure to file tax returns, and complicity in aiding customers to evade taxes through its platform.

In the suit,the Federal Government also accused Binance of failure to register with FIRS for tax purposes and contravening existing tax regulations within the country.

One of the counts in the lawsuit pertains to Binance’s alleged failure to collect and remit various categories of taxes to the federation as stipulated by Section 40 of the FIRS Establishment Act 2007 as amended.

Section 40 of the Act explicitly addresses the non-deduction and non-remittance of taxes, prescribing penalties and potential imprisonment for defaulting entities.

The charges further detail specific instances where Binance purportedly violated tax laws, such as failing to issue invoices for VAT purposes, thus obstructing the determination and payment of taxes by subscribers.

“Any company that transacts business in excess of N25 million annually is deemed by the Finance Act to be present in Nigeria.

“According to this rule, Binance falls into that category. So, it has to pay taxes like Company Income Tax (CIT) and also collect and pay Value Added Tax (VAT).

“But Binance did not do this properly. So, the company broke Nigerian laws and could be investigated and taken to court for this infraction,” Adekanmbi said.

The Federal Government remains resolute in its commitment to ensuring compliance with tax regulations and combating financial impropriety within the cryptocurrency sector.

FIRS, by the law setting it up and various others, is empowered to assess, collect and account for revenue accruing to the Federation and administer relevant tax laws.

Binance pleaded guilty to flouting anti-money laundering laws in the United States in late 2023, settling for a plea bargain that cost the company $4.3billion.

Mohammed Shosanya

The Federal Government,has said that Nadeem Anjarwalla,a suspect in the ongoing criminal probe into the activities of Binance in Nigeria,fled the country through the use of smuggled passport.

He escaped from lawful custody on March 22,2024,Zakari U. Mijinyawa, Head – Strategic Communication, Office of the National Security Adviser,confirmed in a statement on Monday.

According to Zakari, “Upon receiving this report, this office took immediate steps, in conjunction with relevant security agencies , MDAs, as well as the international community, to apprehend the suspect. Security agencies are working with Interpol for an international arrest warrant on the suspect”

He disclosed that the personnel responsible for the custody of the suspect have been arrested, and a thorough investigation is ongoing to unravel the circumstances that led to his escape from lawful detention.”

He added:”Recall that the Federal Government of Nigeria, like other governments around the world, has been investigating money laundering and terrorism financing transactions perpetrated on the Binance currency exchange platform.

“Until his escape, Nadeem Anjarwalla, who holds British and Kenyan nationalities and serving as Binance’s Africa regional manager, was being tried by Nigerian courts.

“The suspect escaped while under a 14-day remand order by a court in Nigeria. He was scheduled to appear before the court again on 4 April 2024.

“We urge the Nigerian public and the international community to provide whatever information they have that can assist law enforcement agencies to apprehend the suspect”.