Addis Ababa / Washington D.C. / Minneapolis - In a move that has sent shockwaves through East African diaspora communities in the U.S., the National Bank of Ethiopia (NBE) has publicly 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.
These companies are accused of undermining Ethiopia's financial system, laundering illicit funds, and funding potentially illegal activities abroad.
In a statement posted across social media and echoed by state-affiliated media, the Ethiopian Central Bank named the following companies:
- Shgey Money Transfer -- Based in Silver Spring, Maryland & Falls Church, Virginia
- Adulis Money Transfer -- Based in Falls Church, Virginia & Silver Spring, Maryland
- Ramada Pay (Kaah Express) -- Falls Church, Virginia
- TAAJ Money Transfer -- Minneapolis, Minnesota
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According to the NBE, 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," effectively bypassing the Ethiopian banking system.
They also accused the firms of "legitimizing illegal funds" and financing unauthorized activities -- a vague but serious claim that hints at money laundering or terrorism financing, though no specific evidence has yet been released publicly.
Let's be clear: remittances are the lifeblood of the Ethiopian (and Somali) economy. The U.S. dollar is the most critical foreign currency flowing into Ethiopia -- largely through diaspora remittances. In fact, in many Ethiopian households, money from abroad keeps food on the table and lights on at home.
But Ethiopia has been struggling to fix its exchange rate crisis since last year. The government has been trying to stamp out the parallel "black market" currency trade and consolidate dollar inflows through official banking channels. The IMF has even backed Ethiopia's efforts to unify its exchange rate as part of a broader economic reform agenda.
Yet, as anyone with East African roots in the U.S. knows, diaspora trust in Ethiopian banks is low, and informal channels -- especially trusted Somali hawaalado -- are faster, cheaper, and more reliable.
That's exactly what seems to have triggered the Ethiopian government's fury.
The timing is telling. As Ethiopia faces foreign currency shortages, inflation, and public debt, it's increasingly looking to control the few reliable sources of hard currency -- namely, remittances. But by targeting these money transfer companies, many of which serve communities that are both Ethiopian and Somali, Addis Ababa may have sparked a new front in its internal economic wars -- one that puts diaspora communities directly in the crosshairs.
If the U.S. government heeds Ethiopia's call and begins investigating or cracking down on these remittance operators, it could send chilling effects across all African money transfer systems, especially those run by immigrant entrepreneurs and used by low-income communities who rely on them for survival.
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So far, none of the four companies named have publicly responded. U.S. regulators have also remained silent. But don't expect this to stay quiet for long. Community backlash is likely.
This is more than a financial probe -- it's a clash of systems:
- Modern diaspora trust networks vs. traditional central banking
- Community-based cash flows vs. state-controlled remittance regulation
- Survival economics vs. sovereign financial policy
The fallout could redefine how the East African diaspora sends money home. For now, all eyes are on Washington -- and Falls Church.
Sources: NBE statement, IMF reports, diaspora community forums, BBC Amharic translation
