The National Bank of Ethiopia (NBE) has officially banned four U.S.-based money transfer companies, Shgey Money Transfer, Adulis Money Transfer, Ramada Pay (Kaah), and TAAJ Money Transfer, for allegedly operating without proper licenses and facilitating unauthorized cross-border transactions.
These companies, widely used by the Ethiopian diaspora in states like Maryland, Virginia, and Minnesota, are accused of engaging in suspicious financial activities, including money laundering. Notably, TAAJ Money Transfer had previously pleaded guilty in a U.S. federal court to violating the Bank Secrecy Act, having moved over $66 million without the required reporting.
In a public advisory, the NBE emphasized the importance of using licensed and regulated financial institutions for all international money transfers. It warned that funds sent through unlicensed channels may be seized or never delivered, and urged U.S. authorities to investigate these transactions.
The move has sparked mixed reactions. While some support the crackdown, others argue that the large gap between the official exchange rate (134 birr/USD) and the black market rate (170+ birr/USD) continues to drive people toward informal channels. Critics also called for broader enforcement in regions like the Gulf, Europe, and South Africa, where large Ethiopian communities reside. Suggestions included launching whistleblower programs and offering incentives for legal transfers, especially for Ethiopians working with international organizations.
Although the NBE’s enforcement may seem delayed, the message is clear: regulatory compliance is now mandatory for all cross-border fund handlers. While only four companies are currently banned, they serve high-volume remittance corridors, highlighting broader risks in the informal remittance space. Many operators remain unregistered in U.S. state or federal databases, despite handling significant sums.
To guide users, the NBE has published a list of 88 licensed remittance providers on its website (nbe.gov.et/mta). Using any company not listed there is now illegal under Ethiopian law. As remittances remain a vital economic lifeline, especially after pandemic-era declines, this crackdown may push more users toward digital platforms with stronger oversight. However, for the formal system to succeed, it must be not only secure but also competitive and accessible.
