diff --git a/CHANGELOG.md b/CHANGELOG.md
index 5495e8480bf0..4330ce40d69c 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -76,6 +76,7 @@ longer panics if the store to load contains substores that we didn't explicitly
   * Update `handleQueryStore` to resemble `handleQueryCustom`
 * (cli) [\#4763](https://github.com/cosmos/cosmos-sdk/issues/4763) Fix flag `--min-self-delegation` for staking `EditValidator`
 * (keys) Fix ledger custom coin type support bug
+* (simulation) [\#4912](https://github.com/cosmos/cosmos-sdk/issues/4912) Fix SimApp ModuleAccountAddrs to properly return black listed addresses for bank keeper initialization
 
 ## [v0.36.0] - 2019-08-13
 
diff --git a/simapp/app.go b/simapp/app.go
index b356cbef5b01..7037922a24cf 100644
--- a/simapp/app.go
+++ b/simapp/app.go
@@ -253,7 +253,7 @@ func (app *SimApp) LoadHeight(height int64) error {
 func (app *SimApp) ModuleAccountAddrs() map[string]bool {
 	modAccAddrs := make(map[string]bool)
 	for acc := range maccPerms {
-		modAccAddrs[app.SupplyKeeper.GetModuleAddress(acc).String()] = true
+		modAccAddrs[supply.NewModuleAddress(acc).String()] = true
 	}
 
 	return modAccAddrs
diff --git a/simapp/app_test.go b/simapp/app_test.go
index 6e5635eadb67..4cddce7b6786 100644
--- a/simapp/app_test.go
+++ b/simapp/app_test.go
@@ -36,6 +36,16 @@ func TestSimAppExport(t *testing.T) {
 	require.NoError(t, err, "ExportAppStateAndValidators should not have an error")
 }
 
+// ensure that black listed addresses are properly set in bank keeper
+func TestBlackListedAddrs(t *testing.T) {
+	db := dbm.NewMemDB()
+	app := NewSimApp(log.NewTMLogger(log.NewSyncWriter(os.Stdout)), db, nil, true, 0)
+
+	for acc := range maccPerms {
+		require.True(t, app.BankKeeper.BlacklistedAddr(app.SupplyKeeper.GetModuleAddress(acc)))
+	}
+}
+
 func TestGetMaccPerms(t *testing.T) {
 	dup := GetMaccPerms()
 	require.Equal(t, maccPerms, dup, "duplicated module account permissions differed from actual module account permissions")