Ethiopia Country Summary
Medium-High Risk
View full Ratings TableSanctions
Higher Concern
FATF AML Deficient List
Lower Concern
Terrorism
Medium Concern
Corruption
Medium Concern
US State ML Assessment
Lower Concern
Criminal Markets (GI Index)
Medium Concern
EU Tax Blacklist
Lower Concern
Offshore Finance Center
Lower Concern
Please note that although the below Summary will give a general outline of the AML risks associated with the jurisdiction, if you are a Regulated entity then you may need to demonstrate that your Jurisdictional AML risk assessment has included a full assessment of the risk elements that have been identified as underpinning overall Country AML risk. To satisfy these requirements, we would recommend that you use our Subscription area.
If you would like a demo of our Subscription area, please reserve a day/time that suits you best using this link, or you may Contact Us for further information.
Anti Money Laundering
FATF Status
Ethiopia is no longer on the FATF List of Countries that have been identified as having strategic AML deficiencies
Compliance with FATF Recommendations
The last follow-up to the Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Ethiopia was undertaken in 2022. According to that Evaluation, Ethiopia remained Compliant for 11 and Largely Compliant for 25 of the FATF 40 Recommendations. It remains Highly Effective for 0 and Substantially Effective for 0 of the Effectiveness & Technical Compliance ratings.
Sanctions
The United States has imposed sanctions on certain individuals and entities in Ethiopia due to the humanitarian and human rights crisis, as outlined in Executive Order 14046 issued on September 17, 2021. Additionally, the U.S. policy restricts the export of defense articles or services to the armed forces and internal security forces of Ethiopia, reflecting a broader strategy to address concerns regarding human rights and security in the region.
Criminality
Rating |
0 (bad) - 100 (good) |
|---|---|
| Transparency International Corruption Index | 37 |
| World Bank: Control of Corruption Percentile Rank | 37 |
Ethiopia faces significant challenges related to crime and corruption, with systemic issues affecting various sectors, including public service delivery, land administration, and government procurement. Despite the establishment of anti-corruption initiatives and legislative frameworks, the effectiveness of enforcement remains hampered by political instability, corruption within law enforcement, and ongoing ethnic conflicts, which undermine the country's resilience to organized crime.
Economy
Ethiopia, the second most populous country in Africa, is experiencing a complex economic landscape characterized by both opportunities and challenges. The nation attracts foreign investment through its low-cost labor, a national airline with extensive connectivity, and a burgeoning consumer market; however, it grapples with persistent inflation, a foreign exchange shortage, and political unrest, particularly in regions like Oromia and Amhara. Despite these hurdles, the government is making strides towards economic reform, including the establishment of a stock exchange and the liberalization of various sectors, although significant bureaucratic barriers and a lack of investor interest in privatization efforts continue to hinder progress.
Subscribe to
Professional Plus
- Unlimited Access to full Risk Reports
- Full Dataset Download
- API Access
- Virtual Asset Risk Assessments
