Ethiopia’s Central Bank Deploys AI to Crack Down on Suspicious Transactions

The National Bank of Ethiopia (NBE) has begun utilizing artificial intelligence (AI) tools to detect suspicious transactions and fraudulent activities, according to its governor, Mamo Mihertu. The central bank has recently intensified its crackdown on illicit financial flows as part of broader efforts to formalize the sector, including regulating cross-border fund movements to mitigate risks of money laundering and terrorist financing.

Mamo confirmed the deployment of AI tools yesterday during the third Knowledge Series forum hosted by Kifiya Financial Technology and the Mastercard Foundation at the Hyatt Regency Hotel in Addis Ababa. The event focused on “Leveraging AI Innovations to Unlock New Markets and New Models for the Financial Industry” with an emphasis on MSMEs and agri-financing.

“AI can help us make comprehensive assessments using both objective measurement data and traditional data points, even for those without formal financial histories,” the governor said in his address.  “It can strengthen risk management, improve confidence, and ensure the integrity of the financial system by detecting suspicious patterns, verifying identities, and tailoring products to underserved economies.” 

The statement comes a week after the NBE reported increasingly using technology infrastructure to identify illicit transactions. The Financial Security Services announced the freezing of 138 accounts tied to suspicious activities in the same week

Sources told Shega that the AI system, deployed last week, is already being used to monitor transactions between banks, fintech firms, and other financial actors for irregularities. 

The governor added that the Bank’s broader goal is to “deliver technology responsibly, foster collaboration between banks, IT companies, and technology providers, and ensure the benefits are transparently accessible to all citizens.”