Ethiopia cracks down on illegal money transfers and cryptocurrency violations
Ethiopia’s authorities have intensified their crackdown on illegal financial activities, revealing that recent investigations have uncovered widespread involvement in unlawful money transfers, money laundering, manipulation of foreign exchange, tax evasion, and counterfeiting of legal tender. Officials warned that these activities have caused significant damage to the country’s economy.
According to a statement issued by the National Intelligence and Security Service (NISS) and the central bank, some of the funds moved through these illicit channels have been used to support terrorist organizations and other unlawful groups. The statement specifically cited international networks facilitating illegal transfers, digital payment platforms, and intermediaries handling unauthorized transactions.
Authorities also pointed out that some businesses involved in sending or receiving money abroad were managing their commercial expenses and revenues through illegal channels, bypassing regulatory oversight. The central bank has instructed citizens, particularly young people, not to transfer large sums of foreign currency into the country without proper authorization, as such actions violate banking regulations and pose risks to national financial stability.
The report highlighted that domestic institutions and companies using unauthorized digital transfer programs are under scrutiny. Owners and operators of such platforms who operate without legal licenses or in violation of central bank rules face strict legal action. These illegal activities have disrupted major government projects, undermined public trust, and threatened both national security and the economy.
This year, the National Bank of Ethiopia called for investigations into four U.S.-based companies operating in Maryland, Virginia, and Minnesota, accusing them of attempting to undermine the Ethiopian financial system. According to the bank, these companies collected money from Ethiopian diaspora communities in the United States and transferred it to Ethiopia and other countries, potentially facilitating unlawful funds and illegal investments. U.S. dollars remain the primary foreign currency entering Ethiopia through these channels.
Authorities emphasized that all individuals and organizations involved in illegal money transfers, cryptocurrency violations, and unlicensed financial operations will face stringent measures. The crackdown is part of Ethiopia’s broader effort to strengthen oversight, protect the financial system, and prevent the misuse of funds that could destabilize the economy or support unlawful activities.
The government’s coordinated response involves intelligence agencies, law enforcement, financial regulators, and community support to identify and prosecute offenders. Officials have also reiterated that the public should comply with banking regulations and avoid engaging in unauthorized financial transfers, highlighting the central bank’s zero-tolerance policy toward illicit financial operations.
