The National Bank of Ethiopia (NBE) warned on Friday that it will be taking action against businesses and individuals who conduct official transactions through personal or third-party bank accounts, alleging the practice “appears to be intended to evade oversight by tax authorities” and could involve proceeds from criminal activity.
Central bank regulators say that a large number of business entities and individual traders are complicit in conducting official transactions through personal or third-party accounts, bypassing their registered business bank accounts.
To address the issue, the bank has instructed all financial institutions to collect and report data on customers—especially business organizations and traders—who are found using personal or third-party accounts for commercial operations. The move, the NBE said, is part of efforts “to safeguard the soundness and integrity of the financial system and the broader economy.”
The statement comes just days after newly-minted NBE Governor Eyob Tekalign issued a “final warning” to remittance providers suspected of involvement in illegal activity, and announced the NBE is embarking on a coordinated crackdown on money laundering and terrorism financing.
From The Reporter Magazine
The Governor called on the public to refrain from using informal remittance channels.
“Transfers from illicit entities will be identified and accounted for,” said Eyob, a former State Minister of Finance who replaced Mamo Mihretu at the helm of the NBE last month.
“The National Bank will not hesitate to take action. Action is not limited to closing accounts. A wide operation that includes beneficiaries and agents has already begun and will move toward coordinated enforcement,” said the Governor.
From The Reporter Magazine
Enforcement will presumably be conducted in line with the recently ratified anti-money laundering and asset recovery proclamations.
The Asset Recovery Proclamation ratified by Parliament in January 2025 allows authorities to seize any asset with a value exceeding ten million Birr that lacks proper documentation, including movable and immovable property, money, legal instruments, securities, shares, and virtual assets, among others.
The law retroactively applies to assets acquired up to ten years before its enactment.
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