413
In Ethiopia, the issue of money laundering has taken on a sense of urgency in
view of current global and regional terrorist concerns. In the past, the term ‘money
laundering’ was applied only to financial transactions related to organised crime.
Today, its definition is often expanded by government and international regulators
to mean any financial transaction that generates an asset or a value through an
illegal act, which may involve actions such as tax evasion or false accounting.
414
The major forms of money laundering in Ethiopia are believed to be drug
trafficking, tax evasion, and human trafficking. But an emerging issue of concern
is cyber theft – that is, theft conducted by penetrating the computer systems
of banks. According to the CSAR, cyber theft was said to be increasing in
magnitude and sophistication as the banking industry continues to expand.
Cyber theft and money laundering activities pose serious dangers not only to the
strength of Ethiopia’s financial system, but also to global security. The current
ability of money launderers to penetrate virtually any financial system makes
every jurisdiction a potential money laundering centre.
415
According to the already existing penal code, money laundering is a criminal
offence in Ethiopia. However, under the penal code, no specific institution was
created to execute the law. Moreover, the penal code lacks specific details based
on international conventions or standards to prevent financial crime. Although
there is the prevention and suppression of money laundering and the financing
of terrorism proclamation, No. 657/2009, the GoE has to find more ways of
strengthening existing legislation to fight money laundering. According to the
information availed to the CRM, Ethiopian authorities have been discussing
the Anti-Money Laundering (AML) regime proposals in order to control money
laundering since 2004.
416
To strengthen the current law on money laundering, the National Bank of
Ethiopia drafted a bill on money laundering which was endorsed by the Council
of Ministers on 19 June 200928 and passed into law by the Ethiopian Parliament in
November 2009. The new law criminalises the practice of money-laundering and
includes a provision that establishes a Financial Intelligence Unit. A provision in
the new law also obliges depositors to disclose the source of their money when
depositing or transferring funds.
417
The current bill was first scheduled to be approved by Parliament in 2006,
together with the Counterterrorism bill which, too, is awaiting legislative action
by Parliament. Once approved, this new piece of legislation will bring Ethiopia in
line with international standards on anti-money laundering activities.
28
The law is derived from the experiences of the IMF and the United Nations Convention against the Illicit Traffic in Narcotic
Drugs and Psychotropic Substance.
- 169 -
Select target paragraph3
Connect to a paragraph
Connect to an entity
Disable highlights
Add to table of contents