Key Documents

Ethiopia Enacts Anti-Terrorism Proclamation Law

August 28, 2009

Ethiopia Enacts Prevention and Suppression of Money Laundering and Financing of Terrorism Law

December 16, 2009

National Bank of Ethiopia Issues Customer Due Diligence Directive

March 4, 2010

National Bank of Ethiopia Issues Regulation for International Remittance Services

May 7, 2006

Important Facts

The U.S. State Department identifies Ethiopia as a monitored jurisdiction. Ethiopia is not considered a regional financial center primarily because of its unsophisticated financial systems and pervasive government controls. Ethiopia's location in the Horn of Africa makes it vulnerable to money laundering-related activities perpetrated by transnational criminal organizations. Sources of illegal proceeds include corruption, smuggling and trafficking in narcotics, persons, arms and animal products. As the economy grows, law enforcement sources believe bank fraud, electronic/computer crime and money laundering activities will continue to rise. The financial services sector remains closed to foreign investment. Since strict foreign exchange controls limit possession of foreign currency, most of the proceeds of contraband smuggling and other crimes are not laundered through the official banking system. High tariffs encourage customs fraud and trade-related money laundering. Money and value transfer systems, particularly hawala, are widely used.
KYC Covered Entities: Banks, foreign exchange bureaus, financial leasing companies, customs and revenue agency, notaries, licensing organizations, auditors, accountants, real estate brokers/agents, precious metal dealers, brokers and investment advisors
STR Covered Entities: Banks, foreign exchange bureaus, financial leasing companies, customs and revenue agency, notaries, licensing organizations, auditors, real estate agents/brokers, precious metal dealers, brokers and investment advisors
Enhanced Due Diligence Procedures for PEPs: Foreign: No; Domestic: No
Money Laundering Criminal Prosecutions/Convictions: Prosecutions: N/A; Convictions: N/A

Source: 2016 International Narcotics Control Strategy Report (INCSR)

Rankings

FATF i | 2013 Methodology

Technical	Effectiveness
Compliant : 11	High : 0
Largely Compliant : 25	Substantial : 0
Partially Compliant : 3	Moderate : 2
Non-Compliant :	Low : 9
Not-Applicable : 1

No longer a "graylisted" country as of Oct. 18, 2019. Ethiopia's technical compliance was re-rated in follow-up report released on June 24, 2022.

BASEL i

Rank : 97/110

Score : 6/77/10

TRANSPARENCY INTERNATIONAL i

Rank : 94/179

Score : 38/100

Tax Justice Network i

Rank : N/A

Score : N/A

Ethiopia

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