As part of efforts to assert greater control over cross-border transactions, Ethiopia’s central bank has outlawed four U.S. money transfer services operating without approval.
This move has sparked discussions about financial compliance, diaspora remittances, and Ethiopia’s evolving economic landscape.
What Happened? The NBE’s Ban Explained
On August 2, 2025, the NBE issued a public advisory warning the Ethiopian diaspora against using unlicensed money transfer services.
The central bank identified four U.S.-based firms, including Shgey Money Transfer, Adulis Money Transfer, Ramada Pay (Kaah), and TAAJ Money Transfer, for allegedly operating illegally and engaging in suspicious activities, including money laundering and unauthorised cross-border transactions.
According to the NBE, these firms were collecting funds from Ethiopian communities abroad without proper licensing, posing risks to both senders and recipients.
Notably, TAAJ Money Transfer had previously pleaded guilty in a U.S. federal court for violating the Bank Secrecy Act, moving over $66 million without meeting mandatory reporting requirements.
The NBE emphasised that all international money transfers must go through licensed and regulated financial institutions to ensure compliance with anti-money laundering (AML) and counter-terrorist financing (CTF) regulations.
To guide users, the NBE published a list of 88 licensed money transfer providers on its website: nbe.gov.et/mta.
READ ALSO:Ethiopia’s Banking Shift: Are You In or Out?
Why Did the NBE Take This Action?
1. Curbing Illicit Financial Flows
Ethiopia has been working to strengthen its financial system amid broader economic reforms, including liberalising its foreign exchange regime and adopting an interest rate-based monetary policy.
The ban aligns with efforts to curb illicit financial flows, boost foreign exchange reserves, and protect consumers from fraud.
2. Protecting the Diaspora
The Ethiopian diaspora, a significant source of remittances, relies heavily on money transfer services. The NBE’s advisory warns that funds sent through unlicensed operators risk being seized or never reaching their intended recipients, exposing users to financial loss and legal consequences.
3. Enforcing Compliance
By targeting unlicensed firms, the NBE is reinforcing the importance of regulatory compliance. This move also sends a signal to international authorities, with the NBE urging U.S. regulators to investigate the banned firms’ activities.
The Bigger Picture: Ethiopia’s Financial Reforms
This ban is part of Ethiopia’s broader push to modernise its financial sector. In recent years, the country has introduced significant reforms, such as:
- Foreign Exchange Liberalisation: In July 2024, the NBE eliminated surrender requirements for exporters and simplified rules for foreign currency accounts, increasing foreign exchange supply to the private sector.
- Banking Sector Opening: In December 2024, Ethiopia passed legislation allowing foreign banks to operate in the country, marking a shift from decades of protectionism.
- Digital Payment Systems: The NBE has supported digital payment platforms, granting licences to non-bank forex bureaus and mobile money operators to reduce reliance on cash-based transactions.
These reforms aim to address macroeconomic imbalances, reduce inflation (down from 30% to 13% in 2025), and attract foreign investment.
However, the ban on unlicensed money transfer firms highlights the challenges of balancing innovation with regulatory oversight in a rapidly evolving financial landscape.
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What This Means for the Ethiopian Diaspora
For Ethiopians abroad, the NBE’s advisory serves as a wake-up call to verify the legitimacy of money transfer services. Here’s what you should do:
- Use Licensed Providers: Check the NBE’s list of 88 authorised money transfer services at nbe.gov.et/mta before sending funds.
- Avoid Unlicensed Operators: Funds sent through banned firms like Shgey, Adulis, Ramada Pay, or TAAJ may be at risk of confiscation or loss.
- Stay Informed: Follow updates from the NBE and trusted news sources to stay aware of regulatory changes affecting remittances.
The ban may also push some users toward informal systems like Hawala, which operate outside official oversight and carry their own risks.
To avoid this, the NBE is promoting campaigns like “DEBO”, encouraging diaspora remittances through regulated banks.
As Ethiopia continues its economic reforms, staying informed and compliant will be key for individuals and businesses alike.
Have you been affected by this ban? Share your thoughts in the comments below, and subscribe for more updates on Ethiopia’s financial landscape!
Ronnie Paul is a seasoned writer and analyst with a prolific portfolio of over 1,000 published articles, specialising in fintech, cryptocurrency, climate change, and digital finance at Africa Digest News.
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