Ethiopia Targets Somali-Owned Remittance Firms in U.S. Over Money Laundering Allegations
Addis Ababa, August 6, 2025 – Ethiopia’s central bank, the National Bank of Ethiopia (NBE), has launched an investigation into four Somali-owned money transfer firms operating in the United States, amid growing concerns over illicit financial flows and money laundering.
The firms under scrutiny include Shgey, Adulis, Ramada Pay (Kaah), and TAAJ Money Transfer. These companies play a significant role in diaspora remittances ,an essential source of foreign exchange for Ethiopia but regulators allege that some transactions may be facilitating the movement of untraceable funds linked to criminal activity or tax evasion.
The NBE has reportedly requested financial intelligence cooperation from U.S. authorities and regional regulators to assess compliance standards and customer verification processes used by these firms.
Strategic Impact
This move underscores Ethiopia’s broader efforts to strengthen financial transparency and regulatory oversight as it works to reform its banking sector and attract international investment. It also reflects rising scrutiny of informal and cross-border money channels, particularly amid efforts to liberalize the foreign exchange regime and curb parallel market activity.
While remittances are a lifeline for many households, authorities caution that weak compliance among transfer agents can expose the country to reputational and economic risks.
This development may lead to stricter due diligence requirements for remittance operators servicing the Horn of Africa and could reshape how diaspora finance is regulated in Ethiopia and beyond.
