Purpose: the purpose of this research is to crit ically examll1e the anti money launderingrnframework of the country, the mechan isms to fi ght it and to suggest :vays 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 otherwisc. The research descr ibes the fight againstrnmoney laundering in Ethiop ia, analyses the gaps sti ll remain ing between Ethiopia andrninternationally accepted standards and points out the futurc efforts to be made in general andrnfrom the banking perspective in particular.rnFindings: Ethiopia has madc a remarkable progress in fight ing money launder ing activities;rngaps however are still remain ing and further efforts should be made to avoid the lacunae inrnthe anti money laundering laws ofthc co untry as rccommendcd.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 adm ini strators and to the banking sector.rnResearch Limitation: the fact that the anti money laundering law is new and the requiredrnorgans are under estab li shment, it becomes impossible to eva luate the law from pragmaticrnapproach which constitutes an issue for furth er rescarch. Freedom of information is alsornanother chronic challenge to the write r.rnKey Words: Money Laundering, Ethiop ia, Banking sector.rnPaper Type: Resea rch Paper