Whereas, the form. causes and impact of fraud inflict actual and potential risk on microfinance institutions:

Whereas. detection and prevention of fraud contributes for the soundness of financial system in general and microfinance sector in particular;

Whereas, the National Bank of Ethiopia has found it necessary to require microfinance institutions to take the necessary measures to detect. prevent and take remedial actions on fraud;

Now, therefore, in accordance with Article 27(2) of Microfinance Business Proclamation No. 626/2009, the National Bank of Ethiopia hereby issues these directives.