Whereas, the form, causes and impact of fraud inflict actual and potential risk on banks;

Whereas, detection and prevention of fraud contributes to the soundness of financial
system in general and banking sector in particular;

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

Now, therefore, in accordance with article 59(2) of Banking Business Proclamation No.592/2008, the National Bank of Ethiopia hereby issues these directives.