Ethiopia's Ministry of Justice has directed all commercial banks to freeze the accounts of ten payment gateway providers and provide complete financial records. The action aims to probe allegations of tax evasion and money laundering in the expanding digital finance sector. This follows a recent lifting of freezes on related individuals.
On December 29, Ethiopia's Ministry of Justice issued a directive, signed by State Minister Tesfaye Daba Wakjira of the Attorney General Division, instructing all commercial banks to freeze the accounts of ten payment gateway providers and submit comprehensive financial records. The targeted firms include ArifPay, AddisPay, FenanPay, LakiPay, StarPay, YagoutPay, SantimPay, Kacha, Chapa Pay, and Sinan Pay.
Banks must detail domestic and foreign currency balances, share capital, and full transaction histories from account inception to the present. This requires Excel-formatted statements, KYC documentation, and certified proxy information bearing official bank seals.
The order comes shortly after a December 23 directive that lifted account freezes on 50 individuals, including YagoutPay CEO Teshome Alemayehu, just three weeks following their initial blocking. Officials are scrutinizing these entities amid allegations of tax evasion and money laundering, as part of broader efforts to regulate the rapidly expanding digital finance landscape in Ethiopia. This heightened oversight reflects growing concerns over financial transparency in the sector.