Country Reports on Terrorism 2007 - Ethiopia

The Government of Ethiopia, after conducting a counter offensive in late 2006 in response to threats against its security and in support of the internationally recognized Transitional Federal Government of Somalia, battled insurgents and extremists that were formerly affiliated with the Council of Islamic Courts, including the AQ-affiliated al-Shabaab militia. Ethiopian forces provided critical support in the stand up of the African Union Mission in Somalia (AMISOM) peacekeeping force which was also targeted by extremist elements. In addition, Ethiopian forces countered Somali-based extremists who attempted to conduct attacks inside Ethiopia.

Ethiopia's location within the Horn of Africa made it vulnerable to money laundering activities perpetrated by transnational criminal organizations, terrorists and narcotics traffickers. As the economy continued to grow and become more liberalized, federal police investigation sources reported expectations that bank fraud, electronic/computer crimes, and laundering activities would continue to rise. On November 6, the National Bank of Ethiopia (NBE) and the United States Department of the Treasury signed the terms of reference and work plan for a technical assistance package to strengthen Ethiopia's anti-money laundering and counterterrorist financing regimes. The assistance will aid the NBE in establishing a financial intelligence unit and provide training to Ethiopia's government-owned and private banks.

Ethiopia's National Intelligence and Security Service (NISS), with broad authority for intelligence, border security, and criminal investigation; was responsible for overall counterterrorism management. Federal and local police counterterrorism capabilities were primarily focused on being able to respond to terrorist incidents. Draft counterterrorism legislation was submitted to Parliament in late 2006, but there was no legislative action in 2007.

Ethiopia was an active participant in AU counterterrorism efforts, served as a focal point for the AU's Center for Study and Research on Terrorism, and participated in meetings of the Committee of Intelligence and Security Services of Africa.