NBE imposes more money transfer restrictions

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The National Bank of Ethiopia (NBE), the financial sector regulator, imposes restriction on money transfer from account to account to only five individuals or entities in a week than the past open experience.
Since the beginning of demonetization, mid-September 2020, the central bank has imposed a total restriction on depositing money on behalf of another account.
However, transferring from account to account that can be undertaken directly by visiting bank branches or technology based was not restricted until this Friday.
On Friday December 8, NBE has issued a circular to all banks under the subject ‘limits on one to multiple accounts transfer.’
The circular that was signed by Solomon Desta, Vice Governor of Financial Institutions Supervision, stated that with the exception of account transfers made for the purpose of effecting utility payments including mobile top ups, salary payments by employer organization and transactions effected by financial institutions (including financial cooperatives) from their accounts, it is prohibited effective from January 8, 2021 to undertake one to multiple accounts transfer from a single account exceeding five transactions per week by any deposit account holder in a bank.
“Meanwhile, in a bid to sufficiently ascertain the purpose of such account transfers, CEOs of banks or their formal delegates shall exceptionally approve one to multiple accounts transfer above the aforementioned weekly limit on a case by case basis,” it said.
Experts in the financial sector speculated that the latest decision of the central bank is targeting to curb money laundry and terrorism financing. “It will play its own role to halt some illegal acts and instabilities in different pockets of the country,” they told Capital.