The Authority for Civil Society Organizations (ACSO) stated on April 23, 2026, that it will take serious legal measures against groups receiving, transferring, or using foreign currency outside the formal banking system. The directive aims to ensure civil society operations align with their purposes and national financial security.
The Authority for Civil Society Organizations (ACSO) has stressed that civil society organizations must adhere to National Bank directives and legal procedures when receiving and using foreign financial support.
In its statement issued on April 23, 2026, ACSO announced it would impose “serious legal measures” on any organizations that receive, transfer, or utilize foreign currency outside the formal legal banking system. All financial support from foreign countries, international institutions, donor organizations, or overseas individuals must flow exclusively through the legal banking channels.
Key requirements include depositing funds directly into the organization's designated foreign currency bank account, retaining supporting documents for all transfers, and following the same procedures for any onward transfers to other entities.
ACSO plans to intensify its monitoring under Proclamation No. 1113/2019, involving in-depth reviews of financial reports, on-site verifications of project funding sources and usage, and joint investigations of irregularities with relevant stakeholders. "Giving, receiving, or using financial support or donations outside the legal banking system is a serious violation of the law," the statement said, adding that "the Authority will take appropriate legal measures against any organization found guilty."
Violators risk accountability for illegal money laundering or diverting funds from intended purposes. ACSO advised Ethiopian civil society organizations to promptly review their internal financial controls for compliance.