Ethiopia

Ethiopia drafts Asset Recovery Bill in fight against economic crimes

Ethiopia's Justice Minister Gedion Timotiwos addresses a press briefing on June 26, 2024, on the country's Asset Recovery Draft Bill. (Photo: X/Ethiopia News Agency)

By Vincent Ombati | Wednesday, June 26, 2024

The bill seeks to depress individuals engaging in illegal financial crimes like money laundering, human trafficking, and illicit financial activities to amass wealth.

Ethiopia has drafted the Asset Recovery Bill, which gives the government power to seize property acquired illegally, as part of measures to combat crime and build a healthy economy.

The bill seeks to depress individuals amassing wealth by engaging in illegal financial crimes like money laundering, human trafficking, and illicit financial activities.

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At a press briefing on Wednesday, Justice Minister Gedion Timotiwos noted that economic crimes had badly affected the country hence the bill that he said will significantly stabilise the country's political-economic landscape by curbing economic crimes.

He added that unverified wealth possessed by some individuals was harming the country's financial and iTax systems, forex, and the cash circulation in the economy.

"They (need) to be stopped somewhere. We need to stop people from accumulating wealth through illicit means," he said, as reported by the Ethiopia News Agency, adding that the crimes had blocked foreign investment in the financial sector and others.

"The Asset Recovery Draft Bill is a key legal tool to stop the aforementioned crimes which have cost the country dearly," he said.

Gedion explained that in the drafting of the bill, they considered the experiences of several countries and international conventions.

The bill has been forwarded to the House of Peoples Representatives (HPR) for approval.

Should it be ratified, it will apply to public institutions, the private sector, individuals, and any entity with legal recognition.

The bill requires the government to open an account through which all seized property will be channelled and sold off. Any money raised from the sale of recovered assets will be given to victims as compensation or used by the Ministry of Justice to finance its strategies against economic crimes.

Earlier, the Council of Ministers approved a bill granting investigators power to intercept communications and mail exchanges, among other channels, without a court order. The move is aimed at fighting terrorism and nabbing crime proceeds.