The National Bank of Ethiopia (NBE) has started using artificial intelligence tools to detect suspicious transactions and combat financial fraud, Governor Mamo Mihertu announced on Wednesday. The move marks a significant step in the central bank’s broader strategy to regulate cross-border fund flows and curb money laundering and terrorist financing risks.
The announcement came during the third Knowledge Series forum hosted by Kifiya Financial Technology and the Mastercard Foundation at the Hyatt Regency Hotel in Addis Ababa. The event, titled “Leveraging AI Innovations to Unlock New Markets and New Models for the Financial Industry,” focused on empowering micro, small, and medium-sized enterprises (MSMEs) and improving access to agri-financing.
AI-Powered Financial Oversight
Governor Mamo said the deployment of AI tools enables the NBE to conduct deeper assessments using both objective measurement data and alternative data sources — a critical shift for individuals and businesses without formal financial histories.
“AI can help us strengthen risk management, improve confidence, and ensure the integrity of the financial system by detecting suspicious patterns, verifying identities, and tailoring products to underserved economies,” he said.
Crackdown on Illicit Financial Flows
The NBE’s announcement follows a week of intensified enforcement efforts. The bank recently reported expanded use of technology infrastructure to track irregular transactions, resulting in the freezing of 138 accounts linked to suspicious activities.
According to sources cited by Shega, the AI system — deployed last week — is already monitoring transactions between banks, fintech firms, and other financial players, flagging anomalies in real time.
Building a Responsible AI Ecosystem
Mamo emphasized that the initiative goes beyond fraud detection, positioning AI as a tool for inclusive and sustainable financial growth.
“Our broader goal is to deliver technology responsibly, foster collaboration between banks, IT companies, and technology providers, and ensure the benefits are transparently accessible to all citizens,” he said.
By integrating AI into its regulatory framework, the NBE aims to modernize Ethiopia’s financial sector, strengthen oversight, and build public trust in digital financial services.
