MONEY LAUNDERING AND ITS CONSEQUENCES IN ETHIOPIA

Abstract

Objective of the study is to investigate the country’s stand and performance on anti money laundering and to highlight challenges and potential consequences. The research methodology is a descriptive survey design, both quantitative and qualitative method. Questionnaire and unstructured interview are used. The sampling technique is purposive sampling. Findings include major threats of Money Laundering such as low performances of commercial banks in some areas and other governmental institutions. Methods of money laundering, types of crimes and other vulnerable factors of money laundering are the findings and analysis of the research. Banks and Financial Intelligence Center performance on Politically Exposed persons (PEP’s) are in a very low performance. Lack of awareness, loose cross border control, corruption, tax evasion, Designated Non-Financial Businesses (DNFB’s) such as Real estate transaction are the major factors of money laundering. Institutions in particular and the government in general should work on to improve the weak bureaucracy and the slow change of reform in order to tackle these money laundering threats.