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

Whereas, detection and prevention of fraud contributes for the soundness of financial system in general and the insurance and reinsurance sector in particular;

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

Now, therefore, in accordance with 58(2) of Insurance Business Proclamation No. 746/2012, the National Bank of Ethiopia hereby issues these directives.