Liability of Banks and their Officers in Ethiopia for Fraudulent withdrawal of Money by third Parties

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Date

2001-05

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Addis Ababa, Ethiopia

Abstract

Banking frauds are the real challenges adversely affecting the trust between banks, their customers, and the national economy amid the seamless nature of banking technologies. The study is to analyze liability for fraudulent withdrawal of money by third parties in Ethiopian bank systems, employing a doctrinal research method through collecting primary and secondary data from different legal documents and cases that are purposely sampled for the analysis. The finding of the study indicated that Ethiopian banks system is becoming highly vulnerable to such frauds, and the problem is further exacerbated by poor data system, low understanding of the risk by the bank customers and loose standards governing the bank employees, banking technologies and infrastructure. Yet, absence of clearly stipulated laws on who should bear the liabilities sustained by such acts made preventive measures and the retribution less effective. As the result, the study recommends mass education for the bank customers on the types and extent of vulnerabilities to such bank frauds and strong and updated laws to solve disputes related to liability, and employing banking technologies with updated and multilayer security features.

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Liability of Banks and Their Officers In Ethiopia

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