Ethiopia's real estate sector flagged for money laundering and terror financing risks

Ethiopian officials have warned that the country's expanding real estate sector is highly vulnerable to money laundering and terror financing. A risk assessment study presented on October 21, 2026, highlighted that rapid sector growth and the opening to foreign investment have outpaced current regulatory safeguards. Key deficiencies identified include the absence of a unified national identification system and a lack of a central beneficial ownership registry, which makes verifying financial transactions difficult.

The study also pointed to structural weaknesses such as the lack of fit-and-proper tests for real estate agents and the reliance on cash-based, informal transactions. Mulugeta Temesgen of the Financial Security Service and UNODC representative Abraham Liyew emphasized that stronger collaboration between the government and the private sector is essential to mitigate these risks. This move is part of Ethiopia's broader strategy to align with international financial standards and address concerns previously raised by the FATF.