In a bid to combat corruption and illegal financial flows, the Ethiopian government is preparing a proclamation to punish individuals who evade wealth. This move is aimed at strengthening the country’s legal framework and international commitments to prevent and combat corruption.
Current Legal Framework
Ethiopia has a legal framework in place to combat corruption. The Criminal Code of the Federal Democratic Republic of Ethiopia criminalizes corruption-related offenses, including:
Article 414: Concealing or Transferring Proceeds of Corruption
Any person who conceals or transfers proceeds of corruption, with the intent to evade taxation or conceal the source of the funds, shall be punishable with imprisonment from 5 to 10 years.
Article 415: Acquiring or Possessing Proceeds of Corruption
Any person who acquires or possesses proceeds of corruption, knowing that the funds are proceeds of corruption, shall be punishable with imprisonment from 5 to 10 years.
Article 416: Transferring or Concealing Proceeds of Corruption Across Borders
Any person who transfers or conceals proceeds of corruption across borders, with the intent to evade taxation or conceal the source of the funds, shall be punishable with imprisonment from 10 to 15 years.
Article 417: Money Laundering
Any person who engages in money laundering, including the concealment, transformation, or transfer of proceeds of corruption, shall be punishable with imprisonment from 10 to 15 years.
Article 418: Embezzlement
Any person who embezzles public funds or property, shall be punishable with imprisonment from 5 to 10 years.
Article 419: Bribery
Any person who offers, gives, receives, or solicits a bribe, shall be punishable with imprisonment from 5 to 10 years.
The Criminal Code also provides for the forfeiture of assets and properties acquired through corruption, and the restitution of damages to the state or individuals affected by corruption.
Another domestic law that regulates transfer of proceeds of corruption across borders is the “Financial Anti-Money Laundering and Countering the Financing of Terrorism Compliance Directives Number 01/2014”. This directive emphasizes the importance of sound know-your-customer policies and procedures to prevent financial institutions from being exposed to risks associated with money laundering and terrorist financing. It mandates customer due diligence, identification, and verification processes to ensure that new and existing customers are properly identified, and their activities are monitored to detect any potential illicit financial activities.
Ethiopia also has established the Federal Ethics and Anti-Corruption Commission (FEACC) to investigate and prosecute corruption cases.
In addition to its domestic laws, Ethiopia has also ratified international conventions, including:
The United Nations Convention Against Corruption (UNCAC), which requires countries to establish laws and regulations to prevent and combat corruption and The African Union Convention on Preventing and Combating Corruption (AUCPCC), which aims to promote transparency, accountability, and good governance in Africa
Key Provisions
The UNCAC requires countries to:
Establish laws to prevent money laundering and the concealment of proceeds of corruption (Article 14)
Prevent the transfer of proceeds of corruption across borders (Article 31)
Promote international cooperation to recover and return assets stolen through corruption (Article 52)
Establish laws to prevent the use of proceeds of corruption to fund political campaigns or influence public officials (Article 53)
The AUCPCC requires State Parties to:
Establish criminal offenses for corruption-related crimes, including money laundering and concealment of proceeds (Article 4)
Establish laws and regulations to prevent money laundering and the concealment of proceeds of corruption (Article 7)
Cooperate with each other in the investigation, prosecution, and punishment of corruption-related crimes (Article 12)
Recover and return proceeds of corruption to their country of origin (Article 16)
Impact of the Proclamation
The proclamation is expected to have a significant impact on the fight against corruption in Ethiopia, including:
- Deterrence: The proclamation will serve as a deterrent to individuals who engage in corrupt activities, knowing that they will face punishment if caught.
- Prevention: The proclamation will help prevent corruption by making it more difficult for individuals to engage in corrupt activities.
- Recovery: The proclamation will enable the government to recover assets stolen through corruption, which will help to restore public trust and confidence in the government.
- International cooperation: The proclamation will facilitate international cooperation in the fight against corruption, as Ethiopia will be able to work with other countries to recover and return assets stolen through corruption.
Its Challenges
While the proclamation is a significant step in the fight against corruption, there are challenges that need to be addressed, including:
- Implementation: The proclamation will require effective implementation, including the establishment of a robust institutional framework and the allocation of sufficient resources.
- Enforcement: The proclamation will require effective enforcement, including the investigation and prosecution of corruption cases.
- Public awareness: The proclamation will require public awareness and education to ensure that individuals understand the laws and regulations related to corruption.
- Political will: The proclamation will require political will and commitment from the government and other stakeholders to ensure its successful implementation.
Conclusion
The preparation of the proclamation to punish individuals who evade wealth is a significant step in Ethiopia’s fight against corruption and illegal financial flows. The country’s legal framework and international commitments provide a solid foundation for combating corruption, and the government’s efforts to prevent money laundering and terrorist financing are crucial in this fight. The successful implementation of the proclamation will require a concerted effort from all stakeholders, including the government, civil society, and the private sector.
Written By: Samson Yoseph