Ethiopia’s Financial Intelligence Service (FIS) has frozen 123 bank accounts connected to illicit foreign exchange operations and black market trading.
The crackdown, announced on Friday, focuses on people and organisations alleged to have evaded the official banking industry.
According to the FIS, even though a large portion of the population is adhering to the new macroeconomic reforms, a persistent minority still makes money through illicit means, jeopardising the stability of the country’s economy.
Action aligns with NBE’s regulatory offensive
This move aligns with the National Bank of Ethiopia’s (NBE) ongoing regulatory offensive. In August, the NBE issued a severe warning to the public that four money transfer companies based in the United States—Shgey, Adulis, Ramada Pay (Kaah), and TAAJ—were being investigated for alleged money laundering and illegal financing.
The central bank had warned that funds sent through these unlicensed channels could be confiscated and may not reach their intended beneficiaries.
Investigations underway to undercover insider suspects
The FIS statement also disclosed that investigations are still underway to uncover the scope of the operations fully, and that continuous surveillance raises the possibility that certain banking professionals may be involved in these illegal networks.
The government is reaffirming that stopping illicit forex transactions, money laundering, and terrorist financing is a top national priority while acting under the authority of Proclamation No. 780/2005.
Authorities are advising the public to only use licensed financial institutions for all remittances.