U.S. Department of State Country Reports on Terrorism 2006 - Ethiopia

Although a developing nation with constrained resources in a tough neighborhood, Ethiopia demonstrated political will and intent to tackle the problem of terrorism. Ethiopia's counterterrorist capabilities were limited, but increasing. The government agreed to a number of new initiatives and cooperated in efforts to collect and share intelligence on terrorist groups.

In response to increasing threats against its security in December, the Government of Ethiopia conducted a counteroffensive in support of the internationally recognized Transitional Federal Government (TFG) of Somalia against the extremist dominated Council of Islamic Courts (CIC). Mid-year, the CIC gained control of Mogadishu and in a series of offensives in the second half of the year, extended its control over most of southern Somalia. The CIC made claims to large areas of Ethiopia and Kenya inhabited by ethnic Somalis. By the end of the year, Ethiopian and TFG advances routed the CIC out of Mogadishu, though there was concern that some CIC extremists would continue to reject peace overtures and could initiate an insurgency with AQ support.

The highest levels of the Ethiopian government recognized Ethiopia's vulnerability to financial crimes including terrorist financing and counterfeiting. The Penal Code adopted in early 2005 criminalized money laundering and a number of other financial crimes. The Central Bank (National Bank of Ethiopia) drafted specific anti-money laundering legislation, which included the establishment of a Financial Intelligence Unit.

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 before Parliament at year's end.

Ethiopia was an active participant in African Union (AU) counterterrorism efforts, was nominated 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.