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1. Summary:

The Asset Recovery Proclamation No. 1364/2025 establishes a comprehensive and unified legal framework in Ethiopia for identifying, tracing, freezing, seizing, confiscating, and managing assets derived from crime, particularly corruption and illicit enrichment. It introduces modern mechanisms such as non-conviction-based confiscation, recovery of unexplained wealth, and limited retroactive application, while strengthening institutional coordination and international cooperation. Compared to older fragmented laws that relied mainly on criminal conviction and had weaker enforcement, the proclamation expands state powers to recover assets more efficiently, though it also raises concerns regarding due process, property rights, and protections for third parties.

• Introduces civil asset recovery (non-conviction based).
• Targets unexplained wealth aggressively.
• Gives broad investigative powers to authorities.
• Allows retroactive recovery (10 years).
• Expands recovery to related persons’ assets.
• Limited to assets of more than 10-million-birr worth.
• Strengthens anti-corruption and anti-money laundering framework.

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• Purpose of the Law:

• To identify, trace, freeze, seize, confiscate, and recover assets obtained from crime.
• Targets proceeds of crime and unexplained wealth.

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• Scope:

Application of the Asset Recovery Proclamation No. 1364/2025 covers all key aspects of recovering illicit assets within and outside Ethiopia. It applies to assets obtained from criminal activities, including corruption and related offenses. The law extends to both natural and legal persons, and it covers proceeds and instrumentalities of crime, even when they are held by third parties. It also includes non-conviction-based confiscation proceedings, meaning assets can be recovered without a criminal conviction, and allows action against unexplained wealth. Additionally, the proclamation has a degree of retroactive application to assets acquired before its enactment and provides a framework for international cooperation and mutual legal assistance in cross-border asset recovery

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• Unexplained Asset Rule:

• Individuals may be required to explain the lawful source of their assets.
• If they fail:
  • The asset can be confiscated through court.
• Applies even without criminal conviction (civil-based recovery).
• Threshold:
  • Applies to assets above 10 million birr.
• Time scope:
  • Covers assets acquired up to 10 years back.

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• Asset Investigation Powers (Ministry of Justice) can:

• Start investigations based on:
  • Evidence from institutions
  • Whistleblowers
  • Financial intelligence
• Use techniques like:
  • Financial and bank record analysis
  • Tax and customs data review
  • Property and business records investigation

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• Special Investigation Techniques: With court approval (or urgent authorization):

• Monitor bank accounts
• Access digital systems and data
• Intercept communications (phone, internet, etc.)
• Conduct surveillance and undercover operations

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• Power to Compel Evidence: Ministry of justice can order individuals or institutions to:

• Provide documents
  • Answer questions
  • Give access to records

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• Standard of Proof:

• Uses civil standard of proof (not criminal standard).
• Evidence from criminal cases can be reused.
• Final criminal conviction = strong/accepted evidence in recovery cases.

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• Freezing and Seizure of Assets:

• Authorities may request courts to:
  • Freeze assets (temporarily restrict use)
  • Seize assets (take control)
• Emergency:
  • Minister can freeze assets for up to 3 days before court approval.

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1. Conditions for Freezing/Seizure. Allowed when:

• Asset may be hidden, damaged, or used for crime
• There is suspicion it is proceeds of crime
• Equivalent value assets can be targeted if original is missing
• Can include:
  • Assets of spouse, partner, or children

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1. Court Powers:

• Freeze or seize assets (partially or fully)
• Appoint asset managers
• Order other protective measures

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1. Key words:

Asset recovery, Confiscation, Non-conviction-based forfeiture, Unexplained wealth, Freezing of assets, Seizure, Tracing & identification, Proceeds of crime, Instrumentalities of crime, Civil forfeiture, Retroactive recovery, Burden of proof, Third-party rights, Asset management, Disposal of assets, International cooperation, Mutual legal assistance, Anti-corruption enforcement, Financial investigation

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1. Entry into Force: May 2, 2025

1. Repeals:  For the purpose of asset recovery, the provision in the following Proclamations on asset recovery, freezing, seizure, asset management and confiscation are repealed:

• The Revised Anti-Corruption Special Procedure and Rules of Evidence Proclamation No. 434/2005;
• b) The Revised Anti-Corruption Special Procedure and Rules of Evidence (Amendment) Proclamation No.882/2015;
• c) Prevention and Suppression of Money Laundering and Financing of Terrorism Proclamation No. 780/2013;
• d) Prevention, and Suppression of Terrorism Crime Proclamation No. 1176/2020;
• e) Prevention and Suppression of Trafficking in Persons, Smuggling of Persons Proclamation No. 1178/2020.

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Comparison with older laws:

Issue	PROCLAMATION NO. 1364/2025	Older proclamations
Structure	Unified (Creates a single, comprehensive legal framework	Fragmented (  Anti-Corruption laws   Criminal Code & Criminal Procedure Code   Money laundering laws
Confiscation	With or without conviction	Mostly with conviction
Retroactivity	Allows recovery of assets acquired up to ~10 years before enactment	No
Speed	Fast & proactive	Slower
Scope	Broad (incl. unexplained wealth)	Narrow
Coordination	Improved	Weak
Possible legal gap	On Retroactivity  On Property rights  On Third-party protection	legally safer but practically weaker