_________________________________________________________
US State Dept Narcotics Report 2012:
Ethiopia does not play a major role in the production, trafficking, or
consumption of illicit narcotics or precursor chemicals associated with
the drug trade. The country is, however, strategically located along
major narcotics transit routes connecting Middle Eastern, Asian, and
West African markets. The amount of drugs transiting Ethiopia continues
to increase. Ethiopia's numerous airline connections also contribute to
the increase in drugs transiting through the country. Ethiopia has
witnessed an increase in illegal narcotics seizures (primarily heroin,
cocaine, and cannabis) in recent years. Officials have also noted
increased illegal drug consumption in Ethiopia, as well as drug exports
originating from within the country. If domestic narcotics production,
trafficking, and consumption continue to increase, Ethiopia risks
becoming a larger player in the regional and intercontinental narcotics
scene.
Cannabis is produced in rural areas throughout Ethiopia. An increasing
amount of cannabis production is for export, primarily to neighboring
countries, but with rising amounts trafficked abroad. Traffickers use the
Ethiopian postal system and international courier services to move these
drugs. Khat, a chewable leaf with a mild narcotic effect, is legal in
Ethiopia and is the country's fourth-largest export, up from seventh-
largest export only a few years ago. Khat is an illegal drug in the United
States. Small, localized quantities of poppy are grown in the southwest of
Ethiopia (around Tepi) for local consumption of poppy seeds. Upon
discovery of illicit narcotic crop cultivation, police typically eradicate the
fields and provide several days of training for the farmer. On the second
instance, the farmer is arrested.
West African traffickers use Ethiopia as a transit point on a limited, but
increasing basis. Apprehended traffickers have cited convenient flight
routes and short layovers as their reasons for flying through Addis
Ababa. Bole International Airport's Interdiction Unit continues to improve
its ability to identify male Nigerian and Tanzanian drug mules who
typically smuggle drugs through ingestion. Ethiopian authorities routinely
pass information on suspected transiting drug traffickers to Nigerian
authorities. At present, the Interdiction Unit is mostly dependent on tips
from other countries to identify drug mules and has limited capabilities to
identify suspects themselves.
Although it is not yet a major exporter of cannabis, Ethiopian cannabis
exports continue to rise. Most seizures made by the Federal Police
involved cannabis destined for the United Kingdom. Many of these
seizures involved cannabis hidden inside typical souvenir items.
Drug abuse in Ethiopia is also increasing. Legal khat distribution
networks simply add illegal marijuana and other narcotics available in
Ethiopia to their shipments. Cannabis consumption is spreading outside
the traditional Rastafarian demographic toward the general population.
Hard drug use in Ethiopia remains limited, but DCD continues to see
increases in heroin abuse.
Ethiopia is a party to the 1988 UN Drug Convention. Ethiopia is also a
party to the UN Convention against Transnational Organized Crime, and
the UN Convention against Corruption. The Ethiopian Federal Police
maintains a dedicated police investigation unit for human trafficking and
organized crime. The unit, established in 2009, also covers drug
trafficking. Penalties for narcotics offenses are severe: five years in
prison and a 100,000 Ethiopian birr (approximately $5,800) fines for
convicted illegal drug users and dealers. The Ethiopian Federal High
Court has established a separate drug court; an action the Federal
Police's DCD applauds and calls a strong mechanism to deter repeat
traffickers.
The Ethiopian Federal Police trains postal service employees and
courier services in drug detection and makes weekly visits to post offices
and courier services to monitor their performance.
The United Nations Office on Drugs and Crime (UNODC) is collaborating
with the Ethiopian Government on the implementation of a multi-sector
National Drug Control Master Plan for Ethiopia (2009-2013), as well as
support for drug and HIV prevention and control. A major component of
this joint plan is to curb drug trafficking activities at Bole International
Airport and to build the investigative capacity of Ethiopian drug law
enforcement.
The Federal Police DCD's ranks number fifty-five individuals targeted on
drug enforcement. Approximately half of these personnel work at Bole
Airport's interdiction team, which also includes one aging and
increasingly ineffective drug-sniffing German Shepherd dog. The unit
also continues to suffer a high turnover of senior officers. The DCD
hopes for assistance in procuring and training additional sniffer dogs, as
well as securing new vehicles. Lack of dedicated vehicular transport has
forced officers to take intercity busses out into the countryside on recent
raids, limiting their mobility and effectiveness. The DCD stated the
intention of increasing public awareness of the drug problems in Ethiopia
by partnering with anti-drug clubs in high schools had to be abandoned
for lack of funds. The Government of Ethiopia does not encourage or
facilitate illicit production or distribution of narcotic drugs and
psychotropic substances, nor does it encourage or facilitate the
laundering of proceeds from illegal drug transactions.
The Ethiopian law enforcement community remains aware of its budding
drug problem and maintains a desire to curb the narcotics threat at an
early stage. UNODC is collaborating with Ethiopia to create and
implement a National Drug Control Master Plan. However, Ethiopia's
counternarcotics capacity and resources remain limited.
For Full report, click here
_________________________________________________________
US State Dept Trafficking in Persons Report 2011 (introduction):
(Tier 2)
Ethiopia is a source country for men, women, and children who are
subjected to conditions of forced labor and sex trafficking. Girls from
Ethiopia’s rural areas are forced into domestic servitude and, less
frequently, commercial sexual exploitation within the country, while boys
are subjected to forced labor in traditional weaving, herding, guarding,
and street vending. In 2010, the Southern Nations/Nationalities Peoples
Region (SNNPR) Tourism and Culture Bureau reported that brokers,
tour operators, and hotel owners are increasingly facilitating child
prostitution as tourism expands in the region. Small numbers of
Ethiopian girls are forced into domestic servitude, agricultural labor, and
prostitution outside of Ethiopia, primarily in Djibouti and Sudan, while
Ethiopian boys are subjected to forced labor in Djibouti as shop
assistants, errand boys, domestic workers, thieves, and street beggars.
Six Ethiopian women were trafficked to China in 2010 for forced
prostitution. During the year, local militias – some of whom maintain
alliances with the Somali Region Special Police against insurgents – and
insurgent groups in Degeharbur and Fik zones of Ethiopia’s Somali
Region reportedly conscripted children, though these allegations could
not be conclusively verified due to restrictions on access to the region’s
conflict zones.
Young women, most with only three to four years of primary education,
from various parts of Ethiopia are subjected to domestic servitude
throughout the Middle East, as well as in Sudan, and many transit
through Djibouti, Egypt, Libya, Somalia, Sudan, or Yemen as they
emigrate seeking work. Some women become stranded and exploited in
these transit countries, unable to reach their intended destinations.
Many Ethiopian women working in domestic service in the Middle East
face severe abuses indicative of forced labor, including physical and
sexual assault, denial of salary, sleep deprivation, and confinement.
Many are driven to despair and mental illness, with some committing
suicide. Ethiopian women are also exploited in the sex trade after
migrating for labor purposes – particularly in brothels, mining camps, and
near oil fields in Sudan – or after escaping abusive employers in the
Middle East. Low-skilled Ethiopian men migrate to Saudi Arabia, other
Gulf States, and other African nations, where some are subjected to
forced labor.
The Government of Ethiopia does not fully comply with the minimum
standards for the elimination of trafficking; however, it is making
significant efforts to do so. The government made substantial progress
over the past year in addressing human trafficking crimes through law
enforcement efforts, which included the country’s first convictions for
both transnational sex trafficking and internal labor trafficking. In the
capital region, Federal Police investigated and the Federal Court
prosecuted an increased number of trafficking crimes, though the low
number of investigations and prosecutions of internal trafficking
remained a concern. Local jurisdictions in some parts of the country,
however, became increasingly active in the fight against internal
trafficking. The national government’s efforts to provide assistance to
child trafficking victims identified in the capital decreased significantly
during the year.
For full report click here
_________________________________________________________
US State Dept Terrorism Report 2010
Overview: Over the last four years, East Africa violent extremist networks
led by a limited number of al-Qa’ida personnel and other violent
extremists linked to and supportive of al-Shabaab have increased in
capability, numbers, and strength. The threat posed by these disparate
and often times fluid decentralized networks, particularly the apparent
increase of foreign fighters and other recruits, was a growing concern.
The Government of Ethiopia has been historically concerned about the
activities of terrorists in neighboring Somalia.
2010 Terrorist Incidents:
* On April 24, a bomb attack at a tea room in the northern town of Adi
Aro near the Eritrean border killed five people and injured 20. Ethiopian
officials blamed Eritrean mercenaries for the attack as an attempt to
disrupt the May 23 national elections.
* On May 6, a group of people lobbed hand grenades at a group
assembled for a political opposition party meeting in Adaba, Oromia.
Two persons died and 26 were wounded. Ruling party and opposition
party members blamed each other for the attack, and no group claimed
responsibility for it.
* On May 20, three days before national elections, a bomb exploded on
a bus near the Eritrean border wounding 13 people.
Legislation and Law Enforcement: Ethiopia's National Intelligence and
Security Service (NISS), with broad authority for intelligence, border
security, and VIP protection, was responsible for counterterrorism
management. The Ethiopian Federal Police worked in conjunction with
NISS. Ethiopia viewed instability in Somalia as a critical national security
threat and maintained a defensive military presence along the Somali
border to stem potential infiltration of extremists into Ethiopia.
Countering Terrorist Finance: In March, Ethiopia's central bank issued a
customer due diligence directive for banks. In 2010, Ethiopia enacted
anti-money laundering/counterterrorist financing (AML/CTF) legislation
providing for the establishment of a financial intelligence unit, the
Financial Intelligence Center (FIC). As of December, however, the FIC
had not become operational nor did it issue specific AML/CTF directives.
In August, Ethiopia applied for observer status in the Eastern and
Southern African Anti-Money Laundering Group.
Regional and International Cooperation: Ethiopia was an active
participant in AU counterterrorism efforts, participating in the AU's
Center for Study and Research on Terrorism, and in meetings of the
Committee of Intelligence and Security Services of Africa. Ethiopia acted
as a member state of the Inter-Governmental Authority on Development
(IGAD), and participated actively in IGAD's Capacity Building Program
Against Terrorism to bolster the capacity of IGAD member states to
mitigate, detect, and deter advances by terrorists.
Countering Radicalization and Violent Extremism: The Government of
Ethiopia has established a vocational training program for former
Ogaden National Liberation Front (ONLF) members from the ONLF
faction that signed a peace agreement with the government in 2010.
_________________________________________________________
Links:
Worldwide AML Legislation (International Bar Association)
US State Dept Narcotics Report 2012:
Ethiopia does not play a major role in the production, trafficking, or
consumption of illicit narcotics or precursor chemicals associated with
the drug trade. The country is, however, strategically located along
major narcotics transit routes connecting Middle Eastern, Asian, and
West African markets. The amount of drugs transiting Ethiopia continues
to increase. Ethiopia's numerous airline connections also contribute to
the increase in drugs transiting through the country. Ethiopia has
witnessed an increase in illegal narcotics seizures (primarily heroin,
cocaine, and cannabis) in recent years. Officials have also noted
increased illegal drug consumption in Ethiopia, as well as drug exports
originating from within the country. If domestic narcotics production,
trafficking, and consumption continue to increase, Ethiopia risks
becoming a larger player in the regional and intercontinental narcotics
scene.
Cannabis is produced in rural areas throughout Ethiopia. An increasing
amount of cannabis production is for export, primarily to neighboring
countries, but with rising amounts trafficked abroad. Traffickers use the
Ethiopian postal system and international courier services to move these
drugs. Khat, a chewable leaf with a mild narcotic effect, is legal in
Ethiopia and is the country's fourth-largest export, up from seventh-
largest export only a few years ago. Khat is an illegal drug in the United
States. Small, localized quantities of poppy are grown in the southwest of
Ethiopia (around Tepi) for local consumption of poppy seeds. Upon
discovery of illicit narcotic crop cultivation, police typically eradicate the
fields and provide several days of training for the farmer. On the second
instance, the farmer is arrested.
West African traffickers use Ethiopia as a transit point on a limited, but
increasing basis. Apprehended traffickers have cited convenient flight
routes and short layovers as their reasons for flying through Addis
Ababa. Bole International Airport's Interdiction Unit continues to improve
its ability to identify male Nigerian and Tanzanian drug mules who
typically smuggle drugs through ingestion. Ethiopian authorities routinely
pass information on suspected transiting drug traffickers to Nigerian
authorities. At present, the Interdiction Unit is mostly dependent on tips
from other countries to identify drug mules and has limited capabilities to
identify suspects themselves.
Although it is not yet a major exporter of cannabis, Ethiopian cannabis
exports continue to rise. Most seizures made by the Federal Police
involved cannabis destined for the United Kingdom. Many of these
seizures involved cannabis hidden inside typical souvenir items.
Drug abuse in Ethiopia is also increasing. Legal khat distribution
networks simply add illegal marijuana and other narcotics available in
Ethiopia to their shipments. Cannabis consumption is spreading outside
the traditional Rastafarian demographic toward the general population.
Hard drug use in Ethiopia remains limited, but DCD continues to see
increases in heroin abuse.
Ethiopia is a party to the 1988 UN Drug Convention. Ethiopia is also a
party to the UN Convention against Transnational Organized Crime, and
the UN Convention against Corruption. The Ethiopian Federal Police
maintains a dedicated police investigation unit for human trafficking and
organized crime. The unit, established in 2009, also covers drug
trafficking. Penalties for narcotics offenses are severe: five years in
prison and a 100,000 Ethiopian birr (approximately $5,800) fines for
convicted illegal drug users and dealers. The Ethiopian Federal High
Court has established a separate drug court; an action the Federal
Police's DCD applauds and calls a strong mechanism to deter repeat
traffickers.
The Ethiopian Federal Police trains postal service employees and
courier services in drug detection and makes weekly visits to post offices
and courier services to monitor their performance.
The United Nations Office on Drugs and Crime (UNODC) is collaborating
with the Ethiopian Government on the implementation of a multi-sector
National Drug Control Master Plan for Ethiopia (2009-2013), as well as
support for drug and HIV prevention and control. A major component of
this joint plan is to curb drug trafficking activities at Bole International
Airport and to build the investigative capacity of Ethiopian drug law
enforcement.
The Federal Police DCD's ranks number fifty-five individuals targeted on
drug enforcement. Approximately half of these personnel work at Bole
Airport's interdiction team, which also includes one aging and
increasingly ineffective drug-sniffing German Shepherd dog. The unit
also continues to suffer a high turnover of senior officers. The DCD
hopes for assistance in procuring and training additional sniffer dogs, as
well as securing new vehicles. Lack of dedicated vehicular transport has
forced officers to take intercity busses out into the countryside on recent
raids, limiting their mobility and effectiveness. The DCD stated the
intention of increasing public awareness of the drug problems in Ethiopia
by partnering with anti-drug clubs in high schools had to be abandoned
for lack of funds. The Government of Ethiopia does not encourage or
facilitate illicit production or distribution of narcotic drugs and
psychotropic substances, nor does it encourage or facilitate the
laundering of proceeds from illegal drug transactions.
The Ethiopian law enforcement community remains aware of its budding
drug problem and maintains a desire to curb the narcotics threat at an
early stage. UNODC is collaborating with Ethiopia to create and
implement a National Drug Control Master Plan. However, Ethiopia's
counternarcotics capacity and resources remain limited.
For Full report, click here
_________________________________________________________
US State Dept Trafficking in Persons Report 2011 (introduction):
(Tier 2)
Ethiopia is a source country for men, women, and children who are
subjected to conditions of forced labor and sex trafficking. Girls from
Ethiopia’s rural areas are forced into domestic servitude and, less
frequently, commercial sexual exploitation within the country, while boys
are subjected to forced labor in traditional weaving, herding, guarding,
and street vending. In 2010, the Southern Nations/Nationalities Peoples
Region (SNNPR) Tourism and Culture Bureau reported that brokers,
tour operators, and hotel owners are increasingly facilitating child
prostitution as tourism expands in the region. Small numbers of
Ethiopian girls are forced into domestic servitude, agricultural labor, and
prostitution outside of Ethiopia, primarily in Djibouti and Sudan, while
Ethiopian boys are subjected to forced labor in Djibouti as shop
assistants, errand boys, domestic workers, thieves, and street beggars.
Six Ethiopian women were trafficked to China in 2010 for forced
prostitution. During the year, local militias – some of whom maintain
alliances with the Somali Region Special Police against insurgents – and
insurgent groups in Degeharbur and Fik zones of Ethiopia’s Somali
Region reportedly conscripted children, though these allegations could
not be conclusively verified due to restrictions on access to the region’s
conflict zones.
Young women, most with only three to four years of primary education,
from various parts of Ethiopia are subjected to domestic servitude
throughout the Middle East, as well as in Sudan, and many transit
through Djibouti, Egypt, Libya, Somalia, Sudan, or Yemen as they
emigrate seeking work. Some women become stranded and exploited in
these transit countries, unable to reach their intended destinations.
Many Ethiopian women working in domestic service in the Middle East
face severe abuses indicative of forced labor, including physical and
sexual assault, denial of salary, sleep deprivation, and confinement.
Many are driven to despair and mental illness, with some committing
suicide. Ethiopian women are also exploited in the sex trade after
migrating for labor purposes – particularly in brothels, mining camps, and
near oil fields in Sudan – or after escaping abusive employers in the
Middle East. Low-skilled Ethiopian men migrate to Saudi Arabia, other
Gulf States, and other African nations, where some are subjected to
forced labor.
The Government of Ethiopia does not fully comply with the minimum
standards for the elimination of trafficking; however, it is making
significant efforts to do so. The government made substantial progress
over the past year in addressing human trafficking crimes through law
enforcement efforts, which included the country’s first convictions for
both transnational sex trafficking and internal labor trafficking. In the
capital region, Federal Police investigated and the Federal Court
prosecuted an increased number of trafficking crimes, though the low
number of investigations and prosecutions of internal trafficking
remained a concern. Local jurisdictions in some parts of the country,
however, became increasingly active in the fight against internal
trafficking. The national government’s efforts to provide assistance to
child trafficking victims identified in the capital decreased significantly
during the year.
For full report click here
_________________________________________________________
US State Dept Terrorism Report 2010
Overview: Over the last four years, East Africa violent extremist networks
led by a limited number of al-Qa’ida personnel and other violent
extremists linked to and supportive of al-Shabaab have increased in
capability, numbers, and strength. The threat posed by these disparate
and often times fluid decentralized networks, particularly the apparent
increase of foreign fighters and other recruits, was a growing concern.
The Government of Ethiopia has been historically concerned about the
activities of terrorists in neighboring Somalia.
2010 Terrorist Incidents:
* On April 24, a bomb attack at a tea room in the northern town of Adi
Aro near the Eritrean border killed five people and injured 20. Ethiopian
officials blamed Eritrean mercenaries for the attack as an attempt to
disrupt the May 23 national elections.
* On May 6, a group of people lobbed hand grenades at a group
assembled for a political opposition party meeting in Adaba, Oromia.
Two persons died and 26 were wounded. Ruling party and opposition
party members blamed each other for the attack, and no group claimed
responsibility for it.
* On May 20, three days before national elections, a bomb exploded on
a bus near the Eritrean border wounding 13 people.
Legislation and Law Enforcement: Ethiopia's National Intelligence and
Security Service (NISS), with broad authority for intelligence, border
security, and VIP protection, was responsible for counterterrorism
management. The Ethiopian Federal Police worked in conjunction with
NISS. Ethiopia viewed instability in Somalia as a critical national security
threat and maintained a defensive military presence along the Somali
border to stem potential infiltration of extremists into Ethiopia.
Countering Terrorist Finance: In March, Ethiopia's central bank issued a
customer due diligence directive for banks. In 2010, Ethiopia enacted
anti-money laundering/counterterrorist financing (AML/CTF) legislation
providing for the establishment of a financial intelligence unit, the
Financial Intelligence Center (FIC). As of December, however, the FIC
had not become operational nor did it issue specific AML/CTF directives.
In August, Ethiopia applied for observer status in the Eastern and
Southern African Anti-Money Laundering Group.
Regional and International Cooperation: Ethiopia was an active
participant in AU counterterrorism efforts, participating in the AU's
Center for Study and Research on Terrorism, and in meetings of the
Committee of Intelligence and Security Services of Africa. Ethiopia acted
as a member state of the Inter-Governmental Authority on Development
(IGAD), and participated actively in IGAD's Capacity Building Program
Against Terrorism to bolster the capacity of IGAD member states to
mitigate, detect, and deter advances by terrorists.
Countering Radicalization and Violent Extremism: The Government of
Ethiopia has established a vocational training program for former
Ogaden National Liberation Front (ONLF) members from the ONLF
faction that signed a peace agreement with the government in 2010.
_________________________________________________________
Links:
Worldwide AML Legislation (International Bar Association)
|
|
FATF Statement re AML Strategic Deficiencies:
Date: 16 February 2012
Despite Ethiopia’s high-level political commitment to work with the
FATF to address its strategic AML/CFT deficiencies, Ethiopia has
not made sufficient progress in implementing its action plan, and
certain strategic AML/CFT deficiencies remain. Ethiopia should
work on addressing these deficiencies, including by: (1)
adequately criminalising money laundering and terrorist financing
(Recommendation 1 and Special Recommendation II); (2)
establishing and implementing an adequate legal framework and
procedures to identify and freeze terrorist assets (Special
Recommendation III); (3) ensuring a fully operational and
effectively functioning Financial Intelligence Unit
(Recommendation 26); and (4) implementing effective,
proportionate and dissuasive sanctions in order to deal with
natural or legal persons that do not comply with the national
AML/CFT requirements (Recommendation 17). The FATF
encourages Ethiopia to address its remaining deficiencies and
continue the process of implementing its action plan.
____________________________________________________
Sanctions:
None applicable
____________________________________________________
Offshore Jurisdiction Blacklists:
Information unavailable.
____________________________________________________
US State Department Money Laundering Report - 2011:
Due primarily to its unsophisticated financial systems and
pervasive government controls, Ethiopia is not considered to be a
regional financial center. Ethiopia’s location within the Horn of
Africa region makes it vulnerable to money laundering-related
activities perpetrated by transnational criminal organizations,
terrorists, and narcotics trafficking organizations. Sources of
illegal proceeds include corruption, smuggling and trafficking in
narcotics, persons, arms, and animal products. As the economy
grows and becomes more liberalized, law enforcement sources
believe bank fraud, electronic/computer crimes 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 also encourage customs fraud and trade-
related money laundering. Law enforcement sources indicate that
alternative remittance systems, particularly hawala, are widely
used. The Ethiopian Government has closed a number of illegal
hawala operations and attempts to monitor hawala networks within
the country.
DO FINANCIAL INSTITUTIONS ENGAGE IN CURRENCY
TRANSACTIONS RELATED TO INTERNATIONAL NARCOTICS
TRAFFICKING THAT INCLUDE SIGNIFICANT AMOUNTS OF US
CURRENCY; CURRENCY DERIVED FROM ILLEGAL SALES IN
THE U.S.; OR THAT OTHERWISE SIGNIFICANTLY AFFECT THE
U.S.: NO
CRIMINALIZATION OF MONEY LAUNDERING:
“All serious crimes” approach or “list” approach to predicate
crimes: All serious crimes
Legal persons covered: criminally: YES civilly: YES
CRIMINALIZATION OF TERRORIST FINANCING:
Ability to freeze terrorist assets without delay: YES
UN lists of designated terrorists or terrorist entities distributed to
financial institutions: YES
(Please refer to the Department of State’s Country Reports on
Terrorism, which can be found here: http://www.state.
gov/s/ct/rls/crt/)
KNOW-YOUR-CUSTOMER RULES:
Covered entities: Financial institutions, money transfer agents,
foreign exchange bureaus, financial leasing companies, Ethiopian
Revenue and Customs Authority, notary offices, licensing
authorities, Ethiopian Investment Agency, non-governmental
organizations, auditors, accountants, persons engaged in real
estate business, precious metal dealers, and broker/investment
advisors
Enhanced due diligence procedures for PEPs: Foreign: NO
Domestic: NO
SUSPICIOUS TRANSACTION REPORTING REQUIREMENTS:
Covered entities: Financial institutions, money transfer agents,
foreign exchange bureaus, financial leasing companies, Ethiopian
Revenue and Customs Authority, notary offices, licensing
authorities, Ethiopian Investment Agency, non-governmental
organizations, auditors, accountants, persons engaged in real
estate business, precious metal dealers, and broker/investment
advisors
Number of STRs received and time frame: None
Number of CTRs received and time frame: None
MONEY LAUNDERING CRIMINAL
PROSECUTIONS/CONVICTIONS:
Prosecutions: One pending
Convictions: Unknown
Assets forfeited: criminally: Not available civilly: Not available
RECORDS EXCHANGE MECHANISM:
With U.S.: NO
With other governments/jurisdictions: NO
Ethiopia is not a member of a Financial Action Task Force (FATF)-
style regional body (FSRB). Ethiopia has applied to be an
observer of the Eastern and Southern Africa Anti-Money
Laundering Group.
ENFORCEMENT AND IMPLEMENTATION ISSUES AND
COMMENTS:
The lack of data and systematic study make it difficult for the
federal police to identify trends in money laundering. Further,
inadequate police training and lack of resources significantly
diminish its investigative abilities.
In February 2010, the FATF International Cooperation Review
Group (ICRG) publicly listed Ethiopia as a country deficient in its
AML/CFT regime. In June 2010, Ethiopia’s Finance Minister
confirmed his government’s commitment to an action plan to
improve the country’s anti-money laundering/counter-terrorist
financing (AML/CFT) regime. The action plan includes: (1)
implementing UN Security Council Resolutions 1267 and 1373
through law to ensure there are appropriate procedures to freeze,
seize, and confiscate terrorist funds; (2) introducing implementing
regulations/directives for the new AML law; (3) establishing a fully
operational and effectively functioning financial intelligence unit
(FIU); (4) seeking technical assistance to conduct a review of
AML/CFT laws; (5) raising awareness of AML/CFT issues within
the law enforcement community; (5) implementing effective,
proportionate and dissuasive sanctions in order to deal with
natural or legal persons that do not comply with the national
AML/CFT requirements; and (6) obtaining full membership in a
FSRB and submitting to a mutual evaluation.
Ethiopia has made progress in improving its AML/CFT regime, but
has yet to make its FIU operational or implement various specific
directives in accordance with its November 2009 Prevention and
Suppression of Money Laundering and Financing of Terrorism
law. In March 2010, the Central Bank issued the only relevant
directive to date, mandating customer due diligence requirements
for banks only. Ethiopia established its nascent FIU--the Financial
Intelligence Center (FIC)--in early 2010 with the appointment of a
Director General, but the FIC has not hired additional staff to date.
The FIC reports directly to the Prime Minister, but the Finance
Minister chairs an inter-ministerial committee formed to address
Ethiopia’s AML/CFT deficiencies. The FIC has sought donor
technical assistance.
Date: 16 February 2012
Despite Ethiopia’s high-level political commitment to work with the
FATF to address its strategic AML/CFT deficiencies, Ethiopia has
not made sufficient progress in implementing its action plan, and
certain strategic AML/CFT deficiencies remain. Ethiopia should
work on addressing these deficiencies, including by: (1)
adequately criminalising money laundering and terrorist financing
(Recommendation 1 and Special Recommendation II); (2)
establishing and implementing an adequate legal framework and
procedures to identify and freeze terrorist assets (Special
Recommendation III); (3) ensuring a fully operational and
effectively functioning Financial Intelligence Unit
(Recommendation 26); and (4) implementing effective,
proportionate and dissuasive sanctions in order to deal with
natural or legal persons that do not comply with the national
AML/CFT requirements (Recommendation 17). The FATF
encourages Ethiopia to address its remaining deficiencies and
continue the process of implementing its action plan.
____________________________________________________
Sanctions:
None applicable
____________________________________________________
Offshore Jurisdiction Blacklists:
Information unavailable.
____________________________________________________
US State Department Money Laundering Report - 2011:
Due primarily to its unsophisticated financial systems and
pervasive government controls, Ethiopia is not considered to be a
regional financial center. Ethiopia’s location within the Horn of
Africa region makes it vulnerable to money laundering-related
activities perpetrated by transnational criminal organizations,
terrorists, and narcotics trafficking organizations. Sources of
illegal proceeds include corruption, smuggling and trafficking in
narcotics, persons, arms, and animal products. As the economy
grows and becomes more liberalized, law enforcement sources
believe bank fraud, electronic/computer crimes 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 also encourage customs fraud and trade-
related money laundering. Law enforcement sources indicate that
alternative remittance systems, particularly hawala, are widely
used. The Ethiopian Government has closed a number of illegal
hawala operations and attempts to monitor hawala networks within
the country.
DO FINANCIAL INSTITUTIONS ENGAGE IN CURRENCY
TRANSACTIONS RELATED TO INTERNATIONAL NARCOTICS
TRAFFICKING THAT INCLUDE SIGNIFICANT AMOUNTS OF US
CURRENCY; CURRENCY DERIVED FROM ILLEGAL SALES IN
THE U.S.; OR THAT OTHERWISE SIGNIFICANTLY AFFECT THE
U.S.: NO
CRIMINALIZATION OF MONEY LAUNDERING:
“All serious crimes” approach or “list” approach to predicate
crimes: All serious crimes
Legal persons covered: criminally: YES civilly: YES
CRIMINALIZATION OF TERRORIST FINANCING:
Ability to freeze terrorist assets without delay: YES
UN lists of designated terrorists or terrorist entities distributed to
financial institutions: YES
(Please refer to the Department of State’s Country Reports on
Terrorism, which can be found here: http://www.state.
gov/s/ct/rls/crt/)
KNOW-YOUR-CUSTOMER RULES:
Covered entities: Financial institutions, money transfer agents,
foreign exchange bureaus, financial leasing companies, Ethiopian
Revenue and Customs Authority, notary offices, licensing
authorities, Ethiopian Investment Agency, non-governmental
organizations, auditors, accountants, persons engaged in real
estate business, precious metal dealers, and broker/investment
advisors
Enhanced due diligence procedures for PEPs: Foreign: NO
Domestic: NO
SUSPICIOUS TRANSACTION REPORTING REQUIREMENTS:
Covered entities: Financial institutions, money transfer agents,
foreign exchange bureaus, financial leasing companies, Ethiopian
Revenue and Customs Authority, notary offices, licensing
authorities, Ethiopian Investment Agency, non-governmental
organizations, auditors, accountants, persons engaged in real
estate business, precious metal dealers, and broker/investment
advisors
Number of STRs received and time frame: None
Number of CTRs received and time frame: None
MONEY LAUNDERING CRIMINAL
PROSECUTIONS/CONVICTIONS:
Prosecutions: One pending
Convictions: Unknown
Assets forfeited: criminally: Not available civilly: Not available
RECORDS EXCHANGE MECHANISM:
With U.S.: NO
With other governments/jurisdictions: NO
Ethiopia is not a member of a Financial Action Task Force (FATF)-
style regional body (FSRB). Ethiopia has applied to be an
observer of the Eastern and Southern Africa Anti-Money
Laundering Group.
ENFORCEMENT AND IMPLEMENTATION ISSUES AND
COMMENTS:
The lack of data and systematic study make it difficult for the
federal police to identify trends in money laundering. Further,
inadequate police training and lack of resources significantly
diminish its investigative abilities.
In February 2010, the FATF International Cooperation Review
Group (ICRG) publicly listed Ethiopia as a country deficient in its
AML/CFT regime. In June 2010, Ethiopia’s Finance Minister
confirmed his government’s commitment to an action plan to
improve the country’s anti-money laundering/counter-terrorist
financing (AML/CFT) regime. The action plan includes: (1)
implementing UN Security Council Resolutions 1267 and 1373
through law to ensure there are appropriate procedures to freeze,
seize, and confiscate terrorist funds; (2) introducing implementing
regulations/directives for the new AML law; (3) establishing a fully
operational and effectively functioning financial intelligence unit
(FIU); (4) seeking technical assistance to conduct a review of
AML/CFT laws; (5) raising awareness of AML/CFT issues within
the law enforcement community; (5) implementing effective,
proportionate and dissuasive sanctions in order to deal with
natural or legal persons that do not comply with the national
AML/CFT requirements; and (6) obtaining full membership in a
FSRB and submitting to a mutual evaluation.
Ethiopia has made progress in improving its AML/CFT regime, but
has yet to make its FIU operational or implement various specific
directives in accordance with its November 2009 Prevention and
Suppression of Money Laundering and Financing of Terrorism
law. In March 2010, the Central Bank issued the only relevant
directive to date, mandating customer due diligence requirements
for banks only. Ethiopia established its nascent FIU--the Financial
Intelligence Center (FIC)--in early 2010 with the appointment of a
Director General, but the FIC has not hired additional staff to date.
The FIC reports directly to the Prime Minister, but the Finance
Minister chairs an inter-ministerial committee formed to address
Ethiopia’s AML/CFT deficiencies. The FIC has sought donor
technical assistance.
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| ETHIOPIA |
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| Last Updated: 16 April 2012 |