Ethiopia targets black-market money transfers as central bank vows tough sanctions

Ethiopia’s central bank has issued a strong warning to unlicensed money transfer operators, announcing plans to take strict enforcement actions against those conducting illegal remittance activities that threaten the nation’s financial stability.

• Ethiopia’s central bank warns it will punish illegal hawala and money transfer operators.
• Governor Eyob Tekalign says unlicensed activities threaten financial stability.
• The National Bank of Ethiopia is tracking and investigating violators.
• Global money transfer firms commend Ethiopia’s financial reforms and offer support.

Speaking during a high-level meeting with international money transfer firms and commercial banks in Washington, D.C., on the sidelines of the 2025 IMF–World Bank Annual Meetings, Central Bank Governor Eyob Tekalign emphasised that the country will no longer tolerate underground transactions.

“The National Bank will take strong enforcement measures against those who continue to conduct money transfer activities illegally,” Tekalign stated.

“Such actions undermine the integrity of the financial system and the country’s broader economic stability.”

The governor explained that while Ethiopia welcomes operators transitioning into the formal remittance system, the majority of hawala operators have failed to comply despite repeated government appeals.

He revealed that the National Bank of Ethiopia (NBE) is already identifying unlicensed players through enhanced monitoring and investigation mechanisms.

Tekalign also reassured that Ethiopia’s foreign exchange reserves remain “prudent and secure,” reaffirming the central bank’s commitment to macroeconomic stability and investor confidence.

Representatives of international money transfer agencies and commercial banks at the meeting commended Ethiopia’s ongoing financial reforms, offering recommendations to boost efficiency, compliance, and accessibility within the formal market.

This latest move aligns with broader efforts across Africa to tighten regulation of informal financial systems, as governments seek to curb illicit flows and strengthen domestic currencies in an era of growing remittance dependence.