National Bank of Ethiopia (NBE) announces that it is undertaking massive investigation on those who are involved on illegal financial sector activity including financial institutions in collaboration with security apparatuses.
Starting from a year and quarter back, the financial regulatory body has been strengthening the look for monetary activities through banks including by introducing maximum withdrawal amount from banks, cash on hand, transaction volume on cash and by large demonetization of the birr that introduced just a year ago.
Despite imposing several restrictions and tight controlling mechanisms illegal actors are still trapping the siege for their illegal acts, while the government has been tracing some activists and taking the corrective measure through different instruments.
Economic threats and sabotages are still observed on the market. For instance recently the parallel market on the foreign currency was shooting up for few weeks without the reality on the economy.
Meanwhile, it was smashed within weeks due to corrective measures taken by the government and regulatory body.
Yinager Dessie, Governor of NBE, told Capital that NBE is taking strict procedure regarding money activities “that is the result of shrinking at the parallel market.”
He said that the regulatory body is also undertaking massive investigation on individuals and other entities including banks to cut the illegal against the government rules and regulation.
Information that Capital obtained from sources indicated that employees at commercial banks are involved on the illegal activity mainly on the illegal remittance.
As one of the new directive NBE had to halt cash deposit on behalf of others and limits the account to account transfer to five per a week except for selected services and organizations. However there is information that employees at banks are abusing the restrictions. For instance a bank clerk who cooperates with the illegal actors deposits cash on others account as if it is self deposit by the account holder. “It is mainly conducted for the illegal remittance,” one source told Capital.
Yinager said that the government has information and is taking massive actions and investigation in collaboration with relevant security services including Federal Police, “we are investigating banks and even their employees, while details will be disclosed.”
He added that the similar operation in related with money laundry and unlawful remittance scheme have been conducted and will continue. According to the Governor, the measure will continue, while there are some individuals that are already under custody.
“Border areas are also our main targets to mitigate the challenge,” he added.
The illegal act is affecting the country’s economy in different forms including financing the theorists and inflation.