The Financial Intelligence Service has frozen the bank accounts of 138 individuals accused of operating in the illegal and parallel foreign exchange market, intensifying the government’s campaign against unregulated currency trading.
The agency said the suspects had bypassed the formal banking system to run what it described as structured, ongoing operations in the black market for foreign currency. Under Ethiopian law, all foreign exchange transactions must be conducted through licensed banks and regulated channels. Violations carry severe penalties, including long prison sentences and confiscation of assets.
The latest enforcement move comes amid the National Bank of Ethiopia’s broader crackdown on illicit currency flows. In recent days, the central bank has warned that individuals and businesses using informal forex channels risk asset seizures, and it has publicly named foreign-based money transfer operators accused of facilitating illegal transactions.
Governor Mamo Mihretu has named four U.S.-based remittance operators — Shgey, Adulis, TAAJ Money Transfer and Ramada Pay (Kaah) — as contributors to the illegal forex trade. He urged the diaspora and local traders to rely solely on regulated banking services, warning that violations will be met with strict enforcement measures.
The NBE has also targeted operators based in the United Arab Emirates, pledging to work with international authorities to dismantle cross-border networks feeding Ethiopia’s black market.
Authorities said the 138 suspects had been under surveillance for treating illegal forex dealings as routine business activity. Their accounts have now been suspended as part of ongoing investigations.
Officials reiterated calls for the business community and the diaspora to transact only through formal banking services, stressing that the government will continue to tighten monitoring and enforcement to curb the parallel market.
NIS
