Ethiopia’s central bank has issued a stern warning against sending money through unlicensed transfer agents and informal Hawala networks, cautioning that such transactions could disrupt recipients’ accounts.
The National Bank of Ethiopia (NBE) on Monday said that the use of unlicensed money transfer agents is prohibited under Ethiopian law and poses significant risks to individuals receiving funds.
“Using unlicensed Money Transfer Agents and illegal Hawala networks is prohibited under Ethiopian law and can cause disruptions for recipients,” the bank said.
The NBE said it is intensifying enforcement efforts against illegal operators as well as recipients who knowingly accept funds sent through unapproved channels.
“In line with its legal mandate, the National Bank of Ethiopia is taking action not only against unlicensed dealers and their networks, but also against recipients of funds sent through illegal channels,” the statement added.
Remittances remain a critical source of support for Ethiopian households, particularly amid economic pressure and rising living costs.
However, the central bank warned that funds sent through informal or illegal systems risk account freezes, delays, or other disruptions.
“To protect the accounts of your loved ones and avoid interruptions, the NBE strongly urges individuals and members of the Ethiopian diaspora to use licensed operators,” the statement said.
The bank named several unlicensed services, including Shgey Money Transfer, Adulis Money Transfer (ADZ), Red Sea, Avanti, World Direct Link, Rasmy Pay, USwyre, Zola, and Taaj Financial Service, and advised the public to avoid them.
Authorities stressed that informal networks, which operate outside regulatory oversight, undermine financial stability and expose users to legal and financial risks.
The NBE encouraged remitters to verify the status of money transfer agents, noting that a full list of licensed operators is available on its website.
The warning aligns with ongoing efforts to regulate cross-border financial flows, safeguard remittance recipients, and strengthen oversight of the sector.
The central bank reiterated that non-compliance with the law could lead to enforcement action, underscoring the importance of using licensed channels for all remittance transactions.
