Tag: Binance tax evasion

  • How AI Failure At Abuja Airport Aided Kenyan Binance Executive Escape From Nigeria

    How AI Failure At Abuja Airport Aided Kenyan Binance Executive Escape From Nigeria

    While the controversy over the recent embarrassing escape from custody of an executive of the cryptocurrency exchange, Binance, Nadeem Anjarwalla in Nigeria through the Nnamdi Azikwe International airport rages on, key players across the country’s aviation sector have described the development as confirmation of the lack of synergy amongst security agents at the airports.

    Nadeem Anjarwalla, the regional manager for Binance in Africa, was reported to have fled Nigeria using a smuggled passport through the Abuja airport to escape trial and prosecution. He holds both UK and Kenyan citizenship.

    Many stakeholders who reacted to the news condemned the lapses in Nigeria’s security system and intelligence which they argued made it seamless for the Binance official from perfecting his escape.

    Reports from Nigerian publication citing anonymous source, queried how a passenger could go through many uniformed personnel at the airport to not only process his papers but comfortably travel through the airport unnoticed.

    Commenting on the controversy, the Chief Executive Officer at Selective Security International Ltd, a private firm, Mr Ayo Obilana described the escape of the Binance executive as unacceptable.

    According to Obilana: “I rate the efficiency of the securitymen in charge of airport immigration and state security as unacceptably poor on controversial escape of Mr Anjarwala if he passed through them.

    “It’s not about porosity this time but about human error and failure which definitely points in one direction of either systemic failure or compromise. I believe his name should have been put on watchlist in the data base of the two security agencies. There are other possibilities, however, the matter should be thoroughly investigated and thereafter, the tasking authorities should take appropriate steps for redress or mitigation. I hope the airport has a functional CCTV system and if it has, the fugitive’s movements through the airport can be easily tracked including those who aided his escape.”

    Equally, the Managing Director of another security agency, Centurion Security Services and a onetime military commandant of the Murtala Muhammed Airport, Group Captain John Ojikutu, retired, likened the escape of the Binance official to what happened with the escape of the now known popular underwear bomber, Farouk Abdulmutalab through the Lagos airport in 2009.

    His words “Security begins with intelligence which is more than 60% of the Airport Security Defence Layers. If they get intelligence early and it is appropriately shared, what we saw happened last week would not have happened. What happened last week with the escaped man is not different from what happened with the Abdulmutalab escape in December 25, 2009 even when the father warned the National Intelligence Agent and the US Embassy about the irregular behaviour of his son.

    While arguing that the airline that boarded the Binance official can only be blamed if it was informed earlier that the man was on the watch list or no-fly list.

    “The airport government security agencies on the Aviation Security Defence Layers too appeared not to have any information about the man. What I can tell you from the experience of the Abdulmutalab case and his escape through the Avsec Defence Layers is the disconnect between the government security agencies in their line of duties. Starting with the intelligent agency to the border security agencies which include the immigration, DSS, Avsec/Airlines through the NCAA, etc.”

    Other stakeholders who spoke on the controversy further took a swipe at the crop of security personnel manning the different airports who they accused of just sitting at their duty posts idly.

    “Our airports are the only airports where security personnel sit instead of on their feet moving around. The Binance official can still come back to Nigeria and make another return same way as he escaped without being detected. The level of corruption in the airport security system particularly with immigration and State security protocols is unimaginable.

    The key players also faulted the type of multiple security checks at the international airports which they said does not exist at any known airport in the world. “What obtains at our international airports is indeed shameful and some of us have tirelessly and repeatedly pointed same out to the tasking authority for corrective action but to no avail.”

  • Nigeria Files Tax Evasion Against Binance

    Nigeria Files Tax Evasion Against Binance

    Nigeria’s revenue service has filed tax evasion charges against crypto platform Binance, it said on Monday.

    The cased filed by the Federal Inland Revenue Service (FIRS) in Abuja accuses Binance, the world’s largest cryptocurrency exchange, of four counts of tax evasion.

    The FIRS charges include non-payment of value-added tax (VAT), company income tax, failure to file tax returns, and complicity in helping customers to evade taxes through its platform.

    It said in a statement on Monday it was aware that Nadeem Anjarwalla, a British-Kenyan who is Binance’s regional manager for Africa, was no longer under Nigerian custody and that the company was working with authorities to resolve the issue.

    Tigran Gambaryan, a U.S. citizen and Binance’s head of financial crime compliance, and Anjarwalla, flew to Nigeria following the country’s decision to ban several cryptocurrency trading websites and were detained on arrival on Feb. 26.

    Nigerian authorities had asked an Abuja court to extend the detention of two Binance executives caught up in the country’s cryptocurrency crackdown after an initial warrant used to hold them lapsed, people familiar with the matter said.

    Binance this month said it will stop all transactions and trading in Nigeria’s local currency after March 8 amid a country-wide crackdown on crypto exchanges that have been blamed by authorities for feeding a black market for foreign exchange.

    It will stop supporting withdrawals and any remaining balances in Nigerian naira will be automatically converted into Tether – a stablecoin whose value is pegged to the U.S. dollar.

    (Reuters)

  • Detained Binance Executive Escapes From Custody In Nigeria Using Kenyan Passport

    Detained Binance Executive Escapes From Custody In Nigeria Using Kenyan Passport

    Nadeem Anjarwalla, Binance director for West & East Africa and one of the firm’s two executives detained in Nigeria over tax evasion charges has escaped custody.

    According to reports from Nigerian media, the 38-year-old Briton, who also holds Kenyan citizenship, disappeared on Friday, March 22nd. Anjarwalla was allegedly allowed to leave the Abuja guest house, where he and a colleague were being held, for Ramadan prayers. Authorities believe he used this opportunity to escape.

    Guards on duty reportedly escorted Anjarwalla to a nearby mosque, adhering to religious customs during the holy month. However, the executive vanished during this brief outing.

    An Immigration source claims Anjarwalla used a Kenyan passport to flee the country on a Middle Eastern airline. Authorities are currently investigating how he obtained this passport, as he reportedly had only a British passport upon his arrest.

    This escape raises questions about security protocols at the detention facility and the potential involvement of the guards. The Nigerian government is likely to face heightened scrutiny as they work to recapture Anjarwalla and determine how he managed to escape.

    Why the Binance executives got arrested

    Tigran Gambaryan, a U.S. citizen and Binance’s head of financial crime compliance, and Anjarwalla, a British-Kenyan, flew to Nigeria following the country’s decision to ban several cryptocurrency trading websites and were detained on arrival on Feb. 26.

    The two were caught up in a crackdown following a period during which several cryptocurrency websites emerged as platforms of choice for trading the Nigerian currency, as the country battles chronic dollar shortages.

    A criminal charge was filed against the two executives before a Magistrate Court in Abuja. On 28 February 2024, the court granted the Economic and Financial Crimes Commission (EFCC) an order to remand the duo for 14 days. The court also ordered Binance to provide the Nigerian government with the data/information of Nigerians trading on its platform.

    Following Binance’s refusal to comply with the order, the court extended the remand of the officials for an additional 14 days to prevent them from tampering with evidence. The court then adjourned the case till 4 April 2024.

    Also on 22 March, the Nigerian government approached the Federal High Court in Abuja and slammed another four-count charge on Binance Holdings Limited, Mr Anjarwalla and Mr Gambaryan, accusing them of offering services to subscribers on their platform while failing to register with the Federal Inland Revenue Service to pay all relevant taxes administered by the Service and in so doing, committed an offence, contrary to and punishable under Section 8 of the Value Added Tax Act of 1993 (as Amended).

    The defendants were also accused of offering taxable services to subscribers on their trading platform while failing to issue invoices to those subscribers to determine and pay their value-added taxes and, in so doing, committed an offence contrary to and punishable under S.29 of the Value Added Tax Act of 1993 (as amended).

    Count Three of the charges accused the three defendants of offering services to subscribers on their Binance trading platform for the buying and selling of cryptocurrencies and the remittance and transfer of those assets while failing to deduct the necessary Value Added Taxes arising from their operations and thereby committing an offence contrary to and punishable under Section 40 of the Federal Inland Revenue Service Establishment Act 2007 (as amended).

    The last count of the charges wants the defendants punished for allegedly aiding and abetting subscribers on their Binance trading platform to unlawfully refuse to pay taxes or neglect to pay those taxes and, in so doing, committing an offence contrary to and punishable under the provisions of S.94 of the Companies Income Tax Act (as amended).

    The company announced early this month that it was stopping all transactions and trading in Nigeria’s naira currency after March 8.

    (Additional reporting by agencies)