Anti Money- Laundering and Countering the Financing of Terrorism Regime : Practices by the Ethiopian Financial Intelligence Center
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Date
2016-03
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Addis Ababa University
Abstract
The main objective of this study is to assess the implementation and practice of AML/CFT regime
in the case of FIC, and to measure the level of awareness and knowledge about AML/CFT of
commercial banks of Ethiopia, the study also evaluates the challenges that banks face while
practicing the regime and the benefits get by complying the administration are assessed.
AML/CFT is a global issue, all regimes in the world are required to cooperate with each other to
apply FATF’s Recommendation’s which are endorsed by UN and criminalize ML/TF, Ethiopia has
started practicing AML/CFT in its banks and insurances, many progresses are made in the country
within these few years. Based on the respondents from both FIC and commercial banks have been
discharging their responsibilities by implementing and practicing AML/CFT at a moderate level,
the finding show that both FIC staffs and risk and compliance department staffs in commercial
banks have knowledge and awareness about the AML/CFT regime and they took adequate and
basic training concerning of the preventive measurement of money laundering and terrorist
financing offence.
However, AML/CFT regime practice revealed that the existence of informal sector and cash based
economy has exacerbating the money laundering offences, further, the finding confirmed that
political Exposed Persons, Corruption and implementing Customer Due Diligence (CDD) & Know
Your Customer (KYC) are serious challenges for banks. AML/CFT benefits measures confirmed
that commercial banks understand the benefits of practicing the regime, the mean score in this
regard is very high and above average.
Key Words: Ant-Money Laundering, Countering the Financing of Terrorism, Financial
Intelligence Center
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Keywords
Ant-Money laundering, Countering the financing of terrorism, Financial intelligence center