Ethiopian Central Bank Seeks U.S. Probe Into Money Transfer Firms

The National Bank of Ethiopia (NBE) has called for an investigation into four U.S.-based money transfer companies, many of which are Somali-owned or serve Somali and Ethiopian diaspora clients. The companies – Shgey, Adulis, Ramada Pay (Kaah Express), and TAAJ – are accused of “undermining Ethiopia’s financial system, laundering illicit funds, and funding potentially illegal activities abroad”.

The NBE said that these money transfer operators have “collected funds from the Ethiopian diaspora in the U.S. and sent them to Ethiopia and other countries without following formal legal channels”, bypassing the Ethiopian banking system.

Ethiopia’s call could have chilling effects on all African money transfer systems, especially those run by immigrants and used by low-income communities.