Country Reports on Terrorism 2008 - Ethiopia

The Government of Ethiopia, facing a deteriorating security environment in Somalia that resulted in increased threats to its own 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 al Qa'ida (AQ)-affiliated al-Shabaab factions. Until they announced their military withdrawal from Somalia in late 2008, Ethiopian forces provided critical support to the African Union Mission in Somalia (AMISOM) peacekeeping force, which was also targeted by extremist elements. In addition, Ethiopian forces countered individuals affiliated with organizations that 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. However, the government has yet to establish an anti-money laundering/combating the financing of terrorism (AML/CFT) regime. Although passage of the AML/CFT regime stalled in 2007, the government pressed forward to pass an existing draft, and requested the participation of USG officials involved in prior technical assistance programs to work with Ethiopian central bank officials and local technical consultants in order to finalize the AML/CFT law before submission to parliament. In addition, the government requested that USG officials help draft AML/CFT training manuals for the Ethiopian banking sector. The manuals will be part of the establishment of a Financial Intelligence Unit at the National Bank of Ethiopia.

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 responding to terrorist incidents. In November, the Ethiopian government's House of People's Representatives ratified the Protocol to the Organization of African Union (OAU) Convention on the Prevention and Combating of Terrorism. Ethiopia was an active participant in African Union (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 (CISSA).