Federal prosecutors have issued a stern warning regarding a growing trend of illegal bank account trading, noting that individuals are increasingly selling or leasing their personal banking details to third parties for illicit financial activities.
According to the Federal Prosecutor’s Office, there is no legal provision in the Ethiopian banking sector for the sale or transfer of personal accounts. Despite this, investigators have uncovered a widespread scheme where criminals exploit vulnerable individuals and even close acquaintances to facilitate money laundering.
The perpetrators typically target low-income individuals, offering them small payments to gain control of their accounts. Once an agreement is made, the scammers install mobile banking applications on their own devices, securing full control over the victim's account, including passwords and transaction credentials.
The investigation highlights that criminals predominantly target Commercial Bank of Ethiopia (CBE) accounts due to their widespread accessibility. Once in possession, they use the accounts to funnel illicit funds, effectively shielding themselves from detection while the legal account holder remains the public face of the transaction.
In some instances, scammers use deceptive tactics, convincing victims that they are simply helping a friend or family member move money, only for the victim to unwittingly become a conduit for criminal proceeds.
W/ro Etawerk Tesfaye, Deputy Director of the Transnational Organized Crime Directorate at the Federal Prosecutor’s Office, emphasized that under the law the registered owner of an account bears primary responsibility for all transactions conducted through it.
"Ignorance of the law is no defense," the Deputy Director stated, warning that account holders risk up to 25 years in prison if their accounts are used for money laundering even if they were unaware of the illicit nature of the funds. She further explained that even unintentional negligence, such as failing to secure an account, is considered complicity in the criminal act.
The Prosecutor’s Office also warned that account holders are not exempt from liability in cases of lost or stolen devices. Officials advised that if a phone linked to a mobile banking application is lost or stolen, the account holder must immediately notify the bank to freeze the account, deactivate the mobile service, or block the associated SIM card to avoid criminal exposure.
Authorities identified this surge in account laundering as a significant threat to the nation’s economic stability and public security. The public is strongly advised to maintain exclusive control over their banking credentials and to exercise extreme caution regarding any unsolicited requests for financial transactions through social media or other informal channels.
