Short Title The law is officially cited as the Prevention and Suppression of Money Laundering and Financing of Terrorism (Amendment) Proclamation No. 1387/2025.
Issuing Organ The proclamation was issued by the House of Peoples’ Representatives of the Federal Democratic Republic of Ethiopia in accordance with Article 55(1) of the Constitution. It was signed into law by Taye Atsike-Silasie, the President of the Federal Democratic Republic of Ethiopia.
Effective Date The proclamation entered into force on September 24, 2025, which was the date of its publication in the Federal Negarit Gazette.
Implementing Organ The Financial Intelligence Service, which was established by the Council of Ministers Regulation No. 490/2022, is the primary body responsible for the services and implementation defined in this proclamation.
Purpose and Scope The primary objective of this legislation is to amend the Prevention and Suppression of Money Laundering and Financing of Terrorism Proclamation No. 780/2013. The amendments seek to clarify previously unclear provisions, incorporate new rules that meet international standards, and address current problems regarding financial crimes in the country.
Key Definitions and Provisions The law defines a predicate offence as any crime capable of generating more than 500,000 Birr (in cash or kind) or any crime specifically listed in the annex to the proclamation, regardless of the amount involved. Key provisions include a requirement for legal persons to maintain accurate information on beneficial owners, the establishment of a central beneficial ownership registry, and mandatory reporting for cross-border transportation of cash and precious metals.
Enforcement and Penalties The proclamation grants the Service the authority to suspend suspicious transactions for up to seven working days. It also empowers investigative bodies to use special techniques like surveillance and undercover operations with court approval. Standard penalties for money laundering include rigorous imprisonment for 10 to 15 years and a fine up to 500,000 Birr, with increased penalties for organized crime or high-value cases.