Prevention and Suppression of Money Laundering and Financing of Terrorism (Amendment) Proclamation No. 1387-2025

Prevention and Suppression of Money Laundering and Financing of Terrorism (Amendment) Proclamation No. 1387/2025 updates existing laws to better align with international standards and resolve ambiguities regarding financial crimes. The amendments introduce broader definitions for predicate offences, property, and financial institutions while establishing a central registry for tracking beneficial ownership. Additionally, the law outlines rigorous investigative techniques for law enforcement, such as undercover operations and communication surveillance. It also mandates strict cross-border reporting for cash and precious metals to prevent illicit transfers. Finally, the text specifies increased penalties and defines the legal jurisdiction for prosecuting money laundering and terrorist activities.

key information

• Proclamation Number 1387-2025
• Full Title: Prevention and Suppression of Money Laundering and Financing of Terrorism (Amendment) Proclamation,.
• Issuing Organ: Issued under the authority of the President of the Federal Democratic Republic of Ethiopia, Taye Atsike-Silasie,.
• Date of Promulgation: September 24, 2025,.
• Status: Active; the proclamation entered into force on its date of publication, September 24, 2025.
• Amended Law: This proclamation amends the Prevention and Suppression of Money Laundering and Financing of Terrorism Proclamation No. 780/2013,.

Other Key Particulars

Objective: The amendment was deemed necessary to clarify unclear provisions, incorporate international standards, and adequately respond to current problems consistent with other national laws,.

Expanded Definitions:

Predicate Offence: Now defined as any offence capable of generating more than 500,000 Birr in cash or kind, or any crime listed in the proclamation’s annex regardless of the amount,.

Property/Fund: Broadened to include all assets, whether tangible, intangible, movable, or immovable, and legal documents in any form, including electronic or digital,.

Financial Institution: Specifically includes banks, insurance companies, microfinance institutions, payment system operators, and digital financial service providers.

New Regulatory Frameworks:

Financial Intelligence Service: The Proclamation references the Service established by the Council of Ministers Regulation No. 490/2022.

Central Beneficial Ownership Registry: A central registry must be established and maintained by the Ministry of Trade and Regional Integration to track beneficial owners of legal persons. Information must be maintained for at least ten years after the dissolution of a legal person.

Cross-Border Cash Transportation: Any person entering or leaving Ethiopia with currency, precious stones, or precious metals must declare them to the Ethiopian Customs Authority,.

Investigative Powers:

Investigators can use special evidence-gathering techniques like interception or surveillance with court approval for a period not exceeding 90 days,.

In emergencies, evidence may be gathered with permission from the head of the relevant prosecutor’s office, provided it is submitted to a court within 48 hours,.

Penalties for Money Laundering:

Intentional money laundering is punishable by 10 to 15 years of rigorous imprisonment and a fine up to 500,000 Birr.

Negligent commission of the offence carries a penalty of 5 to 10 years of imprisonment and a fine up to 200,000 Birr.

Penalties can increase up to 25 years and a 1,000,000 Birr fine if the laundered amount exceeds 20,000,000 Birr or if the crime is committed by an organized criminal group

Predicate Offences (Annex One): The proclamation identifies 21 specific categories of crimes, including corruption, fraud, human trafficking, tax crimes, and environmental crimes,.