Diaspora Banking Services

Features

• It is a deposit account designed for Ethiopians and foreigners of Ethiopian origin living in Diaspora to open and use foreign currency account with a bank in their home country.
• Individuals and companies, that have head offices in foreign countries, can open this account.
• The account can be opened in one of the following currencies only:
  • US Dollar
  • Pound Sterling
  • Pound Sterling
• Deposit made in other convertible currencies such as Canadian Dollar, Saudi Riyal, Japanese Yen, Australian Dollar, and UAE Dirham shall be converted to any of the above state three currencies at a spot exchange rate based on the preference of the account holder.

Types of Accounts

• Fixed (time) Deposit Account

  • It is an interest-bearing account with an agreed maturity date.
  • The minimum maturity period is three months.
  • It is opened with an initial deposit of US Dollar 5,000 or its equivalent in any of the above-stated currencies.
  • Interest on such accounts shall be payable only if the account is maintained at least for the minimum period of three months.
  • Interest income on such accounts is tax-free.
  • The Bank will give a certificate to its customer when the money is transferred following the opening of the account.
  • The Bank will give a certificate to its customer when the money is transferred following the opening of the account.
  • Banks are allowed to set their own interest rate on non-residence fixed foreign currency account upon negotiation but not less than LIBOR.

• Current Account

  • It is operated by checkbook and/or pre-arranged procedure.
  • Withdrawals can be made at any time by writing a cheque and/or a prearranged procedure.
  • It can be opened with an initial deposit of US Dollar 100 or its equivalent in any of the above-stated currencies.
  • Interest shall not be paid to a non-resident foreign currency current account.
  • An individual may open a current account in only one of the domestic authorized banks. Whereas he/she may open fixed deposit accounts in more than one bank.

• Non-Repatriable Birr Account

  • It is an account that may take the form of a saving deposit that can be used for local payments only.
  • The transferred balance will be exchanged to local currency and deposited into the account.
  • A bank is allowed to set their own interest rate payment on non-repatriatable Birr accounts upon negotiation but not less than the minimum saving deposit rate set by the NBE.

Eligibility Criteria

• The following individuals and/or enterprises may open a foreign currency account:
  • Non-Resident Ethiopian
  • Non-Resident Foreign Nationals of Ethiopian origin.
  • Business entities owned by Non-resident Ethiopians and located outside the Ethiopian territory for more than one year.
• Ethiopian nationals living and working abroad or in due process of living abroad for work for more than one year and who can produce authenticated documents.

Required Documents

• Application forms are properly filled and signed by the account holder and specimen signature.
• A valid passport and/or identification card (Green card or Permanent resident card or yellow card).
• Nonresident Ethiopians (Diasporas) shall present resident permit/certification, authenticated and registered by pertinent authority, to confirm that they are living and working abroad for more than one year.
• For Diasporas living and working in neighboring and Middle East Countries, all documents must be authenticated by Ethiopian Embassies and legations residing abroad.
• All required documents presented are subject to renewal upon presentation of the valid documents on a yearly basis.
• For business entities, certificate of ownership entitlement for the organization and/or article and memorandum of association authenticated and registered by the pertinent authority.
• Applicants who could not be physically present to open an NR account in the bank shall use the Ethiopian Embassies, correspondent bank, or remittance service providers nearby to prove their identities.

Opening Of The Account

• Non-Resident Ethiopians/Foreign Nationals of Ethiopian origin residing abroad can open the account in person or by post in his/her name.
• Bank may establish contact with potential account openers using e-mail, fax telex, and/or other electronic media authorized by the opening bank. The bank should receive authenticated documents afterward to open the accounts.
• Applicants who could not physically appear to open the account in the domestic banks can use the nearby Ethiopian Embassies, correspondent banks, or remittance service providers to prove their identity.
• Power of attorney holders is not allowed to open foreign currency account and credit the account on behalf of diaspora. Holders of power of attorney are allowed to withdraw from diaspora account.
• The minimum amount required for an initial deposit to open a currency foreign currency account shall be USD100 or its equivalent in any of the eligible currencies stated above.
• The minimum amount required in an initial deposit to open a fixed deposit foreign currency account shall be USD5,000 or it’s equivalent in any of the eligible currencies stated above.
• Two or more eligible joint depositors may together open a single account.
• An individual may open a current account in only one of the domestic authorized banks.

Ways of Crediting to Account

Diaspora account shall be credited through the banking system by:

• The account holder
• The spouse of the account holder upon presentation of the marriage certificate.
• The employer upon presentation of a valid employment agreement.
• The business entity owned by the account holder or share company up on presentation of documents ascertaining the shareholding
• Other institution as per the valid agreement presented.
• Foreign currency cash notes exceeding USD 3,000 or equivalent in any other convertible currency provided that the holder presented signed and sealed foreign currency declaration form from Ethiopian Revenue and Customs Authority.
• Depositing foreign currency cash notes for amount less than USD3,000 can only be allowed upon presentation of entry visa not exceeding 30 days for residents other than neighboring and the Middle East.
• Resident living in neighboring and Middle East countries are required to present signed and sealed foreign currency declaration form from Ethiopian Revenue and Customs Authority for less than or equal to USD 3,000 foreign currency cash notes or equivalent in any other convertible foreign currency to deposit in the account.
• Check deposit that originates from abroad.
• A transfer from one type of non-resident foreign currency account to another type of non-resident foreign currency account owned by individuals and/or enterprises.
• Receipt through international payment cards/credit cards/debit cards.

Use of the Account:

• Make local payment in Birr
• Make foreign payments for import items listed under priority sector in the “Transparency in Foreign Currency Allocation and Foreign Exchange Management Directive”, Food items provided the account holder has the required business license to do so and other Foreign Service payments.
• Effect transfer abroad
• Withdraw from their account for a travel allowance of their requirements in cash notes or any other instruments upon presentation of valid travel document.
• Convert into Birr account at the prevailing exchange rate.
• Pay for authorized bank charges, if any, levied by the opening bank.
• Serve as collateral or guarantee for loans or bids.
• Current accounts may be withdrawn against a cheque written and a withdrawal slip or according to any other pre-arranged procedure.
• Repatriation/return abroad the deposit upon the request of the account holder. Repatriation shall not exceed the account balance.

Closure of the Account

The following conditions may lead to the closure of the Diaspora Account:

• Upon the request of the account holder;
• When the account holder starts to live in Ethiopia after completion of his/her stay abroad.
• If the fund transferred to the account is found to be through money laundering or from terrorist financing services.

Prohibitions

• The foreign exchange acquired either from forex bureaus or any other local source or foreign exchange held locally shall not be used to credit and/or open a foreign currency account.
• Check drawn or endorsed by the diaspora account holder in favor of a resident who does not hold a similar diaspora account shall not be honored.
• Overdrawing of the account is prohibited.

For Credit to the Account Through Swift, Please Provide the Following Details to the Sending Bank:

• Full name of the account holder with Enat Bank
• Account number
• Name of the Branch where the account is maintained
• Swift code – ENATETAA
  • Correspondent Bank SWIFT: MSHQUS33 for transfer in USD.
  • Correspondent Bank SWIFT: POSOIT22 for transfer in EUR.