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National Bank of Ethiopia
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Intra - Derictorate Memorandum( Memo)
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Date: July 31,2022

To: A/D/Director, Foreign Exchange Monitoring and Reserve Management Directorate

From: Foreign Exchange Inspection

Regarding the said action plan request of Internal Audit dated July 19,2023 which you forwarded
to us, please note the following :

S/N .1) As we explained earlier, there is no specific directive area that requires mandatory
“surprise inspection”. All transactions can be inspected any time based on existing documents
kept by banks. In absence of mandatory surprise inspection that can be carried out only in
surprise basis methodologically, no need of such action plan.

S/N.6 ) The penalty issue belongs to senior management and top management. Please discuss
with them and agree on the way forward in this regard as it is out of our scope.

S/N 7) Regarding risk based inspection, once again we confirm that we are following risk- based
approach. Their argument is about “area of inspection “which is to mean directive areas that are
riskier. Our two most risky areas among the existing directives are (i) Transparency directive),
(ii) Diaspora directive. We are correct in this regard. As time and capacity allows, we shall cover
other relatively less risky areas for compliance purpose. Thus, no need of action plans in this
case too.

Issues related to us are the above ones and need to be understood in the manner explained.