July 3, 2009 -  Ahead of the completion of this year's parliament's regular session for recess, a new draft law enabling to prevent and suppress illegal act of money laundering was presented for discussion among Members of Parliaments this week. What was said a model derived from the experience of IMF and the United Convention against the Illicit Traffic in Narcotic Drugs and Psychotropic Substance, the draft law was prepared by National Bank of Ethiopia (NBE).According to the explanation attached with the draft law presented to the House, money laundering was practiced by in contradiction to the real source of money or any property. It was also indicated that these sources among others were believed to be drug trafficking and weapon trading and trafficking, tax invasion, human trafficking, financing terrorists with knowledge or any other ways, gambling, black market, and corruption."In most cases criminal persons use financial institution for money laundering in the pretext of legal act and higher institution which are out of financial institution are also exposed for money laundering", the bill reads adding that money laundering has not only a national context but also global context.An explanation was also made revealing the reason for enacting a law. Accordingly the already existing penal code has dealt with the matter but there is no specific institution that executes the law. Moreover it lacks specific details based on international conventions standard to prevent the criminal act, and absence of full-fledged law to suppress the financers of terrorism as well.According to the penal provision stated in the draft bill, any person who commits money laundering offence shall be criminally liable under the existing criminal code.“Any person, who is in control of pecuniary resources or property disproportionate to his person or past lawful income or obtained from other lawful means shall, unless he gives a satisfactory explanation to the court as to how such pecuniary resource or property came under his control be punished, with out prejudice to confiscation of the property or pecuniary resources or restitution to the rightful owner, as it deems appropriate, with imprisonment from three to five years and fine from Birr 5,000 to birr 10,000," the bill stated.After discussion and debate the House passed the bill to Legal and Administration Standing Committee for further revision. (Daily Monitor – Addis Ababa)
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