ADDIS ABABA – The Federal Democratic Republic of Ethiopia has instituted a comprehensive new legal framework, the Asset Recovery Proclamation No. 1364/2025, aimed at combating economic crime and recovering illicitly obtained assets. Published in the Federal Negarit Gazette on May 2, 2025, the law introduces powerful new measures, including the confiscation of “unexplained assets” and the seizure of property without a criminal conviction in certain circumstances
The proclamation is designed to create a unified and comprehensive legal framework for asset recovery, consolidating provisions that were previously scattered across various laws. Its stated goals are to suppress the detrimental effects of economic crimes on the nation’s economy, address the negative impacts of unexplained wealth on the tax and financial systems, and align Ethiopia with international agreements on asset recovery
Key Provisions of the New Law:
Targeting Unexplained Wealth:
A central feature of the new law is its focus on “unexplained assets”5. Any person whose assets or lifestyle is disproportionate to their known legitimate income, past or present, and where there is reasonable suspicion of a crime, faces confiscation of those assets unless they can prove the legal source to a court’s satisfaction6.
The law has a retrospective reach, allowing authorities to bring claims on unexplained assets acquired up to 10 years prior to the proclamation’s enactment, provided the estimated value of the assets is more than 10 million Birr.
Non-Conviction Based Confiscation:
The proclamation introduces “Non-Conviction Based Confiscation,” which allows for the seizure of assets even if the accused is not found guilty of a crime8. This can occur under several conditions, including when:
- A suspect dies, absconds, cannot be identified, or has immunity from prosecution.
- A conviction cannot be obtained due to the statute of limitations.
- Evidence is insufficient for a criminal conviction but indicates the assets were generated from criminal activity.
- Criminal charges are dropped for reasons such as amnesty.
Expanded Investigative Powers:
The Ministry of Justice will establish a dedicated department of prosecutors and investigators to lead asset recovery efforts. These officials are granted expanded powers to use special investigation techniques with court authorization. These methods include monitoring bank accounts, intercepting communications, conducting undercover operations, and using audio or video surveillance
Victims, Whistleblowers, and Use of Funds:
The law provides for the compensation of victims. If a victim’s property is recovered in its original form, it will be returned; if it has been altered or intermingled, the victim will be paid its value in cash16. Any remaining assets after victim compensation will be confiscated.
Confiscated funds and proceeds from the sale of confiscated assets will be deposited into a special account opened by the Ministry of Finance and used to enhance the justice system. The proclamation also establishes a reward system for whistleblowers who provide information leading to the successful recovery of assets.
International Cooperation:
The Ministry of Justice is designated as the central authority for international cooperation in asset recovery. The law facilitates mutual legal assistance with other countries for joint investigations, freezing, seizure, and confiscation of assets.
This proclamation repeals asset recovery provisions in several previous laws, including the Revised Anti-Corruption Special Procedure and Rules of Evidence Proclamation and the Prevention and Suppression of Terrorism Crime Proclamation, creating a single governing law for such matters. Cases that were pending before the issuance of this law will proceed under the pre-existing legal frameworks. The law is effective as of its publication date, May 2, 2025.
