In an effort to combat financial crimes and protect users from illicit activities, Binance, one of the world’s largest cryptocurrency exchanges, announced that it had restricted 281 accounts belonging to Nigerian residents in 2022 due to money laundering concerns. The company stated that it worked extensively with the Nigerian government to address these issues.
According to a press release from Binance, the company visited Nigeria twice in the fourth quarter of 2022, where its Law Enforcement Training team conducted two full-day sessions for officials from the Economic and Financial Crimes Commission (EFCC). Over 30 investigators attended each session, highlighting the company’s commitment to collaborating with Nigerian law enforcement agencies.
The Financial Crime Compliance (FCC) teams at Binance received 626 information requests related to Nigeria between June 2020 and February 2024. These requests, which came from Nigerian law enforcement agencies, had an average resolution time of 37.4 hours. Binance claimed to have assisted various Nigerian organizations, including the Nigeria Police Force, EFCC, and INTERPOL Nigeria, in combating crimes such as money laundering, kidnapping, extortion, and scams.
During the training sessions conducted by Binance, Nigerian investigators received a thorough understanding of the exchange’s operations and its role in the digital asset ecosystem. Case studies, including those involving suspects from Nigeria, were presented to help officials better understand the complexities of cryptocurrency-related crimes.
In addition to the in-person training sessions, Binance also organized a three-hour online workshop for 70 EFCC officials in August 2023. The workshop aimed to provide insights into Binance’s operational responses and how Nigerian authorities could leverage their assistance effectively.
Binance emphasized the importance of collaboration between cryptocurrency exchanges and regulatory authorities as Nigeria’s fintech ecosystem continues to grow rapidly. With nearly half of all fintech investments in Africa flowing into Nigeria between 2019 and 2023, Binance stressed the need for partnerships with both local startups and global players to ensure the ecosystem’s harmonious development.
Looking ahead, Binance expressed its commitment to continuing its positive interactions with Nigerian authorities to ensure the prosperity of every Nigerian.
