The Authority for Civil Society Organizations (ACSO) has strictly emphasized that any civil society organization is obligated to follow National Bank directives and legal procedures when receiving and utilizing financial support from abroad.
In a statement released on April 23, 2026, the Authority announced that “serious legal measures” will be taken against organizations that receive, transfer, or use foreign currency outside the formal legal banking system.
The Authority confirmed that it will strengthen its monitoring and supervision work by utilizing the powers and responsibilities granted to it under Proclamation No. 1113/2019.
The Authority’s oversight mechanisms include conducting deep reviews of financial reports, verifying project funding sources and utilization in person through field inspections, and investigating specific financial irregularities in collaboration with relevant stakeholders.
The directive explains that any financial support a civil society organization receives from foreign countries, international institutions, donor organizations, or individuals living abroad must pass exclusively through the legal banking system.
The primary requirements include ensuring the foreign currency is deposited directly into the organization’s legal foreign currency bank account, maintaining appropriate supporting documents for all financial transfers to be presented upon request, and ensuring that any transfer or use of foreign currency for another organization follows the same legal procedures as the initial receipt.
This directive was issued based on the necessity of ensuring that the civil society sector operates in alignment with its established purposes and the nation’s financial security.
It was noted that organizations operating in violation of National Bank procedures could be held accountable for illegal money laundering or for utilizing funds for purposes other than those intended.
“Giving, receiving, or using financial support or donations outside the legal banking system is a serious violation of the law,” the Authority’s statement read, adding that “the Authority will take appropriate legal measures against any organization found guilty.”
Civil society organizations operating in Ethiopia are advised to immediately review their internal financial control systems to ensure they are in compliance with these strict operational directives.
