Center Blames in Part Management Gaps in Banks, Public Institutions for Financial Crimes

Addis Ababa, December 30/2020(ENA) The Ethiopian Financial Intelligence Center (EFIC) said the management gaps in banks and public services providing institutions are causing financial crimes, including illicit financial flows from the country. 

The center revealed that Ethiopia is working in collaboration with the 146 member countries of Financial Intelligence Center to recover the money it has been losing illegally.

Financial Crimes Senior Analyst at Ethiopian Financial Intelligence Center, Yonas Mamo partly blamed banks and public services providing institutions for contributing to the financial crimes.

Explaining an instance of money laundering practiced by some, the analyst said “the illegal operators send their relatives to neighboring countries and make them enter the trade system. There they open not only businesses but bank accounts. In that account would be saved money smuggled out of Ethiopia. After some time the person will return to the country as an investor with legal money.”

He said the management gaps and negligence in banks and other financial institutions have a role to play in this regard.

Yonas stressed the need to integrate efforts among financial institutions and avoid unnecessary competition and think in the interest of the country.

Beyond the gaps and the negligence of banks, the illegal and complex mechanisms foreign investors use to siphon money illegally should be closely guarded to stop crimes committed in the name of investment, he pointed out.

The analyst said the National Bank of Ethiopia and Ministry of Revenues should in particular focus on controlling money “investors” swindle and deposit abroad by using several manipulations.