Anti-Money Laundering & Counter Financing of Terrorism (AML&CFT) Policy Statement

Abay Bank (the Bank) has made it a priority to combat money laundering and terrorist financing. The Bank prides itself of being able to identify and understand risks of money laundering and terrorist financing in order to apply preventive measures through its the Board approved Anti-Money Laundering (AML) and Counter Terrorist Financing (CTF) policies and procedures, which are in line with the Financial Action Task Force (FATF), banking supervision regulations by National Bank of Ethiopia (NBE) and Ethiopian Financial Intelligence Center (EFIC).

In light of the dynamic environment, the Bank continually evaluates the strength and relevance of its existing policies, procedures and employee training programs and, if necessary, updates them to address these changes.

The Bank constitutes a Compliance Division at its Head Office under the guidance Chief Risk and Compliance Officer (CRCO) of the bank.

This Policy Statement is a brief description of general principles to which Abay Bank will adhere to, as follows:

  • The bank has a legal and regulatory compliance program that includes designated officer that is responsible for coordinating and overseeing the AML/CFT framework.
  • Proper Know-Your-Customer (KYC) practices are central, and the knowledge of the customer provides a basis for understanding the general activities in which a customer usually would be expected to engage.
  • The Bank has developed written policies documenting the processes in place to prevent, detect and report suspicious transactions.
  • The Bank has a policy prohibiting accounts/relationships with shell banks.
  • The Bank has implemented a risk–based approach using policy, procedures, processes , system and controls to identify ,manage and mitigate money laundering and terrorism financing risk;
  • The Bank has policies covering relationships with Politically Exposed Persons (PEP),their family and close associates.
  • Maintain a written AML and CFT policy and procedures, and apply it to all business units.
  • The bank does not offer services of opening anonymous account, including past trough transaction.
  • Enhanced due diligence for high-risk customers.
  • Maintaining correspondent relationship with a number of banks and in that particular reference, attached the USA Patriot Act certification.
  • Provide regular training on AML & CFT policies and new AML & CFT laws and regulations to employees.
  • Compliance with Banks AML & CFT policies monitored through a combination of internal audit, external audit and regulatory reviews of compliance with relevant anti- money laundering legislation and/or regulation.
  • Sanctions List (European Union; HM Treasury;Office of Foreign Assets Control (OFAC), United States; United Nations Security Council Committee resolution)High Profile Persons Data and for high-ranking government officials and PEP. Abay Bank is fully informed of the laws and regulations governing its correspondents abroad and deals with them in compliance with such laws and regulations.
  • Has implemented Know Your Employee (KYE) program containing detailed screening, monitoring , and Due Diligence requirements;
  • The Bank will monitor customer transactions to identify unusual activity and will report such activity to the competent authority;
  • The bank has implemented technology system to comply with the compliance requirements relating to customers, linked persons and counter parties in case of transactions;
  • The Bank is committed to abide by the laws, regulations, procedures, sanctions and restrictions adopted by international legal organizations and/or by the sovereign authorities in the correspondents’ home countries, including but not limited to bills passed by the U.S. congress.
  • The bank does not deal with or facilitate transactions or provide financial services to entities designated as terrorist or criminal organizations by local authorities,international organizations and sovereign authorities in countries where it maintains correspondent accounts. Furthermore, the bank does not deal with or facilitate transactions or provide financial services to a person if it has any suspicion that this person is acting on behalf of, or is owned or controlled by such designated entities and refrains from facilitating transactions or providing financial services if it suspects that such transactions or financial services are linked to such designated entities or any criminal and/or terrorist activity.
  • For more information please visit/ the link below

Global USA Patriot Act Certification

Wolfsberg Group AML Questionnaire

S/NWeb addressBrief about
1https://www.fatf-gafi.orgThe Financial Action Task Force (FATF) is the global money laundering and terrorist financing watchdog. The inter-governmental body sets international standards that aim to prevent these illegal activities and the harm they cause to society. As a policy-making body, the FATF works to generate the necessary political will to bring about national legislative and regulatory reforms in these areas.
2https://www.fsb.orgThe Financial Stability Board (FSB) is an international body that monitors and makes recommendations about the global financial system. The FSB promotes international financial stability; it does so by coordinating national financial authorities and international standard-setting bodies as they work toward developing strong regulatory, supervisory and other financial sector policies. It fosters a level playing field by encouraging coherent implementation of these policies across sectors and jurisdictions.
3 unit with a mission of controlling & suppressing Money Laundering and -Financing- of Terrorism through setting compliance framework that enables international and national obligations and laws to be properly effected and respected. It also aims at increasing the capacity of providing quality and timely financial intelligence to protect the Nation’s financial and commercial system from such crimes and contribute its best in the process ensuring its security.
4 National Bank of Ethiopia (NBE) is the Central Bank of Ethiopia. It licenses, supervises and regulates the operations of banks, insurance companies and other financial institutions, among other key mandates.