Ethiopia’s Central Bank bans four U.S. remittance companies over fraudulent moves

The National Bank of Ethiopia (NBE) has 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 licenses and facilitating illegal cross-border transactions.

These firms, popular among the Ethiopian diaspora in U.S. states like Maryland, Virginia, and Minnesota, were accused of suspicious activity, including money laundering. One of the companies, TAAJ, had previously pleaded guilty in U.S. federal court to violating the Bank Secrecy Act after moving over $66 million without proper reporting.

“It is imperative that cross-border fund transfers be conducted through the formal and regulated financial system,” the NBE stated in its public advisory. It also warned U.S. authorities to investigate all funds sent through unlicensed channels, as they could be seized or never delivered.

So far, the ban sparked both support and scepticism. Many Ethiopians pointed to the wide gap between the official exchange rate (134 birr/USD) and the black market (170+ birr/USD), arguing that this mismatch continues to push users toward informal methods. Others called for broader enforcement across the Gulf, Europe, and South Africa—regions with large Ethiopian communities—and suggested launching whistleblower channels to expose illicit networks. Some others urged the NBE to offer incentives for legal transfers, such as easing outbound remittances for Ethiopians working with multilateral organisations or UN agencies.

Though late to such enforcement, Ethiopia’s message is clear: regulatory compliance is now non-negotiable for anyone handling cross-border funds.

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While only four companies are currently banned, they serve high-volume corridors. The move also highlights broader risks in the diaspora remittance space. Many operators remain unregistered in U.S. state or federal databases, despite moving large sums informally. The NBE now provides a list of licensed remittance providers at nbe.gov.et/mta, and using any company not listed there is illegal under Ethiopian law.

As remittances remain a critical lifeline—especially after their pandemic-era decline—this crackdown could redirect flows toward digital platforms with stronger oversight. But for that to work, the formal system must not only be secure, but also competitive.