Purpose: the purpose of this research is to critically examine the anti money launderingrnframework of the country, the mechanisms to fight it and to suggest ways of enhancing therneffectiveness of the law in achieving its objective with specific reference to the bankingrnsector.rnDesign/ Methodology/ Approach: the relevant laws enacted to tackle money laundering arernexamined to assess their adequacy or otherwise. The research describes the fight againstrnmoney laundering in Ethiopia, analyses the gaps still remaining between Ethiopia andrninternationally accepted standards and points out the future efforts to be made in general andrnfrom the banking perspective in particular.rnFindings: Ethiopia has made a remarkable progress in fighting money laundering activities;rngaps however are still remaining and further efforts should be made to avoid the lacunae inrnthe anti money laundering laws of the country as recommended.rnOriginality/ Value: the research presents a comprehensive analysis and comment on the newrnanti money laundering law of the country which would be beneficial to policy makers,rnrelevant administrators and to the banking sector.rnResearch Limitation: the fact that the anti money laundering law is new and the requiredrnorgans are under establishment, it becomes impossible to evaluate the law from pragmaticrnapproach which constitutes an issue for further research. Freedom of information is alsornanother chronic challenge to the writer.rnKey Words: Money Laundering, Ethiopia, Banking sector.rnPaper Type: Research Paper