Ethiopia and the U.S. Collaborate to Fight Illicit Financial Transfers
The Governor of the National Bank of Ethiopia (NBE), Mamo Mihretu, met with U.S. Ambassador to Ethiopia Ervin Massinga to discuss ways to prevent and control illicit cross-border financial transactions.
The two officials agreed to strengthen their cooperation on financial controls and ensure that money transfers are conducted through the formal financial system. They also discussed improving the investment climate in Ethiopia.
Background to the Discussion
This meeting follows a significant development on July 26, 2017 E.C. (2024 G.C.) when the National Bank of Ethiopia officially accused four U.S.-based money transfer service providers of participating in money laundering and financing illegal activities.
The NBE alleged that these companies were involved in criminal activities by collecting money from Ethiopians living abroad and then legitimizing the proceeds of crime.
The accused companies are:
- Shegey Money Transfer
- Adulis Money Transfer
- Ramada Pay
- Taj Money Transfer
These companies are located in the U.S. states of Virginia and Minnesota. One of them, Taj Money Transfer, had already pleaded guilty to violating the U.S. Bank Secrecy Act in 2024, according to a statement from the U.S. Attorney's Office for the Southern District of California.
NBE's Broader Crackdown
Following these events, Governor Mamo Mihretu warned that the NBE would take severe action, including the confiscation of funds, against business owners who use the informal foreign exchange market.
He stated that the National Bank is conducting an investigation and will continue to take further action against illicit money transfer operators based abroad who deliberately aim to undermine the integrity of Ethiopia's financial system and distort market value.
As part of this ongoing effort, the Financial Intelligence Service announced that it had frozen the bank accounts of 138 suspects involved in illegal foreign currency criminal activities, who were operating outside the formal and legal banking system.
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