Ethiopia: Authorities Freeze Bank Accounts of 123 Suspects Over 'Illicit Foreign Currency' Activities

20 September 2025
Addis Standard (Addis Ababa)

Addis Abeba — The Financial Intelligence Service (FIS) has announced the freezing of bank accounts belonging to 123 individuals suspected of engaging in illicit foreign currency activities.

In a statement issued yesterday 19 September 2025, FIS said the measure is part of an intensified crackdown on parallel foreign exchange markets that bypass the formal banking system. The service added that monitoring has been expanded to identify additional suspects.

According to the statement, the financial transactions of the 123 individuals were suspended "to ensure accountability" for their alleged involvement in black market dealings. FIS noted that Ethiopia's recent macroeconomic reforms have contributed to a significant increase in legal foreign exchange services, describing the development as "highly commendable." However, it cautioned that some actors continue to exploit illegal channels for profit.

The Service further disclosed that preliminary monitoring indicates the involvement of some banking professionals in black market foreign exchange crimes, with investigations ongoing. FIS stressed that combating money laundering and the financing of terrorism remains its core mandate.

Keep up with the latest headlines on WhatsApp | LinkedIn

In August, FIS froze the bank accounts of 138 individuals accused of similar activities in the parallel market. The move followed a warning from the National Bank of Ethiopia (NBE) urging businesses and members of the diaspora to avoid informal exchange channels. The NBE also cautioned that enforcement measures, including asset seizures and cross-border cooperation against unlicensed foreign-based money transfer services, would be pursued.

On 2 August, the NBE publicly named four U.S.-based money transfer service providers--Shgey Money Transfer, Adulis Money Transfer, Ramada Pay (Kaah), and TAAJ Money Transfer--accused of laundering funds and financing illicit activities through remittances from the Ethiopian diaspora. Among them, TAAJ Money Transfer pleaded guilty to violating the U.S. Bank Secrecy Act, according to a June 2024 statement from the U.S. Attorney's Office for the Southern District of California.

Read the original article on Addis Standard.

Tagged:
Copyright © 2025 Addis Standard. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.

AllAfrica publishes around 500 reports a day from more than 90 news organizations and over 500 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.