Ethiopia's Central Bank Moves Against Businesses Using Personal Bank Accounts

The National Bank of Ethiopia (NBE) has instructed commercial banks to identify and report businesses and traders using personal or third-party bank accounts for commercial transactions, citing concerns over tax evasion and illicit financial activity.

In a statement issued Friday, the central bank said an assessment had revealed widespread use of personal accounts by business organizations and individual traders in place of officially registered business accounts. The practice, it said, appeared to be aimed at avoiding tax oversight and could be linked to criminal or illegal activities.

"This coordinated action is essential to protect the soundness of our financial system and the broader economy," the central bank stated.

The NBE s outlined how its latest maneuver aligns with a broader effort to protect the integrity of the financial system and strengthen oversight of the banking sector. Banks are now required to collect and submit all relevant data on such account holders to the regulator.

Ethiopia's tax-to-GDP ratio stands at around 8% in 2025 well below the sub-Saharan African average of 12-15% with domestic tax revenues reaching 165.4 billion Birr in the first quarter of 2024/25 alone, up 65% year-on-year.

NBE's move marks the latest step in the central bank’s tightening of financial compliance and anti–money laundering measures.