Ethiopia’s Central Bank bans four U.S. remittance companies over fraudulent moves
- The National Bank of Ethiopia banned four money transfer companies for operating without licenses.
- TAAJ Money Transfer previously pleaded guilty to violating the Bank Secrecy Act after moving over $66 million without proper reporting.
- The NBE warned U.S. authorities to investigate funds sent through unlicensed channels, which could be seized.
The NBE's actions reflect a critical need for regulatory compliance in the remittance sector, but the effectiveness of these measures will depend on addressing the underlying issues of exchange rate disparities and the competitiveness of formal channels. A comprehensive approach that includes incentives for legal transfers and enforcement across regions is essential for success.
