The Ethiopian Capital Market Authority (ECMA) recently convened a stakeholder engagement session to discuss the draft Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) Know Your Customer (KYC) Guidelines.

The session brought together a broad spectrum of participants, including licensed capital market service providers, license applicants, and representatives from market infrastructure institutions. Notably, the event also featured collaboration with the Fayda – Ethiopian National ID Program team, underscoring the Authority’s commitment to integrating digital identity solutions into the regulatory framework.

A key focus of the discussions was the proposed integration of electronic KYC (E-KYC) systems into the capital market ecosystem. The collaborative dialogue with the National ID team explored both the regulatory and practical aspects of implementing E-KYC within Ethiopia’s financial infrastructure.

The engagement aimed to gather valuable feedback to ensure that the guidelines are clear, effective, and tailored to Ethiopia’s evolving capital market landscape, while maintaining alignment with global best practices. Stakeholders evaluated whether the draft measures sufficiently mitigate risks related to money laundering and terrorist financing without creating undue compliance burdens.

In addition to regulatory alignment, the session initiated conversations on building a comprehensive training program to support implementation. The guidelines propose structured capacity-building for employees of licensed entities, enhancing their ability to identify and address ML/TF risks and promote a culture of compliance within the sector.

This initiative marks another milestone in ECMA’s efforts to build a transparent, secure, and globally competitive capital market in Ethiopia.