Ethiopia’s Central Bank Bans Four US-Based Money Transfer Firms for Illegal Operation

The National Bank of Ethiopia (NBE) has formally banned four United States-based money transfer companies, Shgey Money Transfer, Adulis Money Transfer, Ramada Pay (Kaah), and TAAJ Money Transfer, citing unauthorised operations and breaches of licensing regulations.

These companies, widely used by members of the Ethiopian diaspora in states such as Maryland, Virginia, and Minnesota, are accused of facilitating unregulated cross-border transactions and engaging in suspicious financial activities, including money laundering. TAAJ Money Transfer had previously pleaded guilty in a US federal court to violating the Bank Secrecy Act after transferring over $66 million without submitting required reports.

In a public notice, the NBE stressed the importance of using licensed and regulated financial institutions for all international money transfers. It warned that money sent through unlicensed operators may be seized or lost and called on US authorities to investigate the transactions in question.

The ban has prompted mixed reactions. Supporters view the move as a necessary step to strengthen financial integrity, while critics argue that the significant gap between the official exchange rate (134 birr/USD) and the parallel market rate (over 170 birr/USD) continues to fuel the use of informal channels. Some have urged the NBE to expand enforcement efforts in regions such as the Gulf, Europe, and South Africa, where large Ethiopian communities reside. Suggestions include introducing whistleblower programmes and providing incentives for legal remittances, particularly for Ethiopians employed by international organisations.

Although some see the action as overdue, the NBE has signalled a firm shift towards enforcing compliance in the remittance sector. While only four firms have been banned so far, they operate in high-volume remittance corridors, raising broader concerns about the prevalence of unregistered operators. Many such companies do not appear in US state or federal registries despite handling large sums of money.

To assist consumers, the NBE has published a list of 88 licensed remittance providers on its website (nbe.gov.et/mta). The use of any unlisted company is now deemed illegal under Ethiopian law. As remittances continue to play a critical role in the economy—particularly in the wake of pandemic-related downturns—this regulatory crackdown could shift more users toward digital platforms with stronger oversight. For the formal system to succeed, however, it must offer not only security but also greater accessibility and competitive rates.