Ethiopia’s Financial Crime Landscape: A Persistent Challenge for Law Enforcement

Executive Summary

• Ethiopia has made progress in addressing financial crime, but persistent threats remain (FATF Report, EU Report)
• Primary sources of financial crime threats identified in the 2016 National Risk Assessment: human trafficking, migrant smuggling, corruption, goods smuggling, hawala, fraud, and tax evasion

Corruption: A Significant Contributor

• Ethiopia’s ranking in Transparency International’s Corruption Perceptions Index (CPI): 96th out of 180 countries in 2019, score of 37 out of 100
• “High” risk rating of 71 and ranking of 176 out of 200 in the 2018 TRACE Bribery Risk Matrix
• Corruption hampers Ethiopia’s ability to effectively respond to financial crimes

Organized Crime and Criminal Networks

• Ethiopia’s Organized Crime Index (OC Index) score: 4.58/10
• Highest criminality scores coming from human smuggling, human trafficking, and arms trafficking
• Prevalence of organized crime and corruption presents a significant challenge for law enforcement

Modern-Day Slavery

• Estimated 614,000 modern-day slaves living in Ethiopia in 2020 (Global Slavery Index Report)
• Government response to the issue assigned a “CCC” rating

The Fight Against Financial Crime

• Ethiopia enacted new anti-human trafficking and migrant smuggling legislation in 2019
• Currently under enhanced follow-up with the FATF
• Government efforts to build robust institutions, strengthen the rule of law, and promote transparency

Staying Vigilant: Adapting to Emerging Threats

• Continued efforts from law enforcement agencies and financial institutions
• International community support: intelligence, best practices, expertise