The Office of the National Security Adviser, ONSA, has called on the public and the international community to provide information that can assist law enforcement agencies in apprehending the Executive Manager of Binance for the African region, Mr Nadeem Anjarwalla, who escaped from detention.
Head of Strategic Communication, ONSA, Mr Zakari Mijinyawa, who made the call yesterday, said a manhunt had been launched for Anjarwalla’s re-arrest.
He said: “The Federal Government, 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 serves 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, and was scheduled to appear before the court again on April 4, 2024.
“The Office of the National Security Adviser confirms that Nadeem Anjarwalla, a suspect in the ongoing criminal probe into the activities of Binance in Nigeria escaped from lawful custody on Friday, March 22, 2024.
“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.
FG contacts Interpol
“Security agencies are working with Interpol for an international arrest warrant on Nadeem Anjarwalla
“Preliminary investigation shows that Mr Anjarwalla fled Nigeria using a smuggled passport.
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.”
How Anjarwalla beat security, escaped
Reports said 38-year-old Anjarwalla, who was detained by Nigerian authorities on allegations of tax evasion and other charges, fled on Friday, from a guest house in Abuja where he and a colleague were being held when security personnel on duty allowed him to visit a nearby mosque for prayers in the spirit of the on-going Ramadan fast.
Anjarwalla, and Tigran Gambaryan, another Binance executive, were arrested and detained on their arrival in Nigeria on February 26, 2024, resulting in a series of legal actions against them and the cryptocurrency exchange.
The Briton, who also has Kenyan citizenship, is believed to have flown out of Abuja using a Middle East airliner.
How the Binance executive whose British passport with which he entered Nigeria is still in the custody of Nigerian authorities escaped using an international flight, is still being investigated.
Security agencies are said to be working to unravel his intended destination to apprehend him.
An Immigration official reportedly said Anjarwalla fled Nigeria on a Kenyan passport, adding that security agencies were trying to determine how he obtained the passport, given that he had no other travel document on him apart from the British passport when he was arrested.
A source said the two Binance officials were detained at a “comfortable guest house” and allowed many privileges, including use of telephones, a loophole he exploited to plot an escape.
We want the safety of our officers, the resolution of issues with Nigeria–Binance
Meanwhile, Binance has said it is aware that one of its two executives detained in Nigeria was no longer in Nigeria’s custody.
However, the company said it is more interested in their safety and is working closely with the Nigerian government towards resolving all issues.
A reliable source in the Crypto company who spoke to Vanguard on condition of anonymity, said: “We were made aware that Nadeem is no longer in Nigerian custody. Our primary focus remains the safety of our employees, and we are working collaboratively with Nigerian authorities to quickly resolve this issue.”
Pressed further on whether the escapee had contacted the office on his whereabouts, the source said: “Unfortunately, there is nothing more I can share with you at this point.”
Vanguard also tried to contact the family of the escaped Binance executive without success. Sources close to the family said: “Since the arrest of the two executives, the families have been traumatized but at this point, there is nothing to share from the families.
‘’They just want the issues resolved and the detained executives returned to meet their loved ones who have missed their presence all this time they’ve been away.”
Charges against them
A criminal charge had been filed against the two executives before a Magistrate Court in Abuja.
The charges were filed at the Federal High Court in Abuja, according to the Special Adviser (Media) to the Chairman of the Federal Inland Revenue Service, FIRS, Mr. Dare Adekanbi.
The lawsuit, designated as suit number FHC/ABJ/CR/115/2024, implicates Binance with a four-count tax evasion accusation.
On February 28 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 April 4, 2024.
Also on March 22, 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, FIRS, 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).
The Nigerian government said over $21.6 billion was traded by Nigerians whose identities were concealed by Binance.
The government also claimed its investigations revealed that unscrupulous elements were using Binance for money laundering, terrorist financing, currency speculation and market manipulation, distorting the Nigerian economy and weakening the naira against other currencies.
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 detailed 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 over 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.
He added that the federal government remained resolute in its commitment to ensuring compliance with tax regulations and combating financial impropriety within the cryptocurrency sector.
Guilty in US
The detention of a Binance executive and his colleague who escaped from Nigeria, began months after the crypto exchange platform pleaded guilty and agreed to pay $4.3 billion to settle criminal money laundering charges levelled by the US Department of Justice.
Binance founder and CEO, Changpeng Zhao, also known as CZ, pleaded guilty and agreed to resign. His criminal trial has been postponed to April 30 by a US court.
