Ethiopia

New Documents

Switzerland and Ethiopia signed an agreement on the avoidance of double taxation with respect to income tax.

The Eastern and Southern Africa Anti-Money Laundering Group released an eighth enhanced follow-up report and re-rating of Ethiopia’s technical compliance with Financial Action Task Force Recommendations.

News

Enforcement Actions

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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 : 24 Substantial : 0
Partially Compliant : 4 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 17, 2021.

BASEL i

Rank : 26/149
Score : 3.05/10

TRANSPARENCY INTERNATIONAL i

Rank : 94/179
Score : 38/100

Tax Justice Network i

Rank : N/A
Score : N/A