The proclamation begins by clearly defining “asset” in broad terms to include movable and immovable property, tangible and intangible resources, bank accounts, bonds, shares, virtual assets such as cryptocurrencies, and any income derived from them. “Asset recovery” is defined as the complete process of identifying, tracing, freezing, seizing, managing, and ultimately confiscating property obtained through criminal activity or unexplained means. The scope of the law extends to both natural and legal persons under Ethiopian jurisdiction. While certain categories—such as government institutions, religious organizations, and international bodies may be exempt from its application, the law’s reach is otherwise extensive. One of its most notable features is its retroactive application to unexplained assets acquired up to ten years prior to its enactment, provided that the asset’s total value exceeds ten million birr.

The investigative powers granted under the proclamation are also significant. Investigations may be initiated upon credible information received from law enforcement, the Financial Intelligence Service, whistle-blowers, or through the independent action of prosecutors. Once an investigation begins, the individual in question is required to explain the lawful origin of their assets. If they fail to provide satisfactory evidence, the law allows an assumption that the assets were acquired unlawfully. Authorities are empowered to employ both general investigative techniques such as reviewing financial statements, property records, and business licenses and special techniques, including bank monitoring, interception of communications, and digital surveillance. These special measures require prior court authorization, although emergency use is permitted with ministerial approval, provided that judicial review follows promptly. Importantly, statements made during such proceedings are protected from being used against the individual in subsequent criminal cases, except where forged or false evidence is involved.

In terms of asset control, the proclamation authorizes freezing orders that can last up to three working days without court approval in urgent cases where there is a risk of asset dissipation; longer freezes require judicial authorization. The law allows for both conviction-based and non-conviction-based confiscation. In conviction-based cases, assets are recovered following a criminal verdict, while in non-conviction-based cases, recovery can occur when prosecution is not possible such as due to the suspect’s death, disappearance, or lack of sufficient evidence for a criminal case using a civil standard of proof. This effectively shifts the burden to the asset holder to demonstrate a legitimate source of wealth.