Ethiopia

New Documents

The Ethiopian Financial Intelligence Center and the Ethiopian Accounting and Auditing Board signed a bilateral agreement on combating corruption, money laundering, terrorist financing and other financial crimes.

The Eastern and Southern Africa Anti-Money Laundering Group published its sixth enhanced follow-up report on Ethiopia, re-rating the country’s anti-money laundering and counterterrorist financing compliance with Financial Action Task Force Recommendations.

News

Enforcement Actions

0 Items Found


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 : 23 Substantial : 0
Partially Compliant : 5 Moderate : 2
Non-Compliant : 0 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 Oct. 21, 2019.

BASEL i

Rank : 26/149
Score : 3.05/10

TRANSPARENCY INTERNATIONAL i

Rank : 96/180
Score : 37/100

Tax Justice Network i

Rank : N/A
Score : N/A