Ethiopia’s Central Bank Moves Against Illegal Hawala

By Mintesinot Nigussie  |  August 29, 2026

The National Bank of Ethiopia has renewed its crackdown on illegal Hawala networks and unlicensed money-transfer operators, warning Ethiopians at home and abroad that using informal channels could result in financial losses, account restrictions and legal action.

The warning comes as remittances have become an increasingly important source of foreign currency for Ethiopia and the central bank seeks to channel more cross-border payments through the regulated financial system.

In a notice issued on Friday, the central bank said customers, diaspora members and recipients in Ethiopia should use only licensed Money Transfer Agents when sending or receiving funds. It identified a number of operators that it said were not authorised to provide remittance services to Ethiopia.

The list includes Amal USA Awash Direct, Adulis Money Transfer (ADZ), Amana Express, Amal Express Avanti, Bakaal Money Transfer, Jubba Express, Ramad Pay/Ramada Pay (Kaah), Shgey Money Transfer, Tasa Pay, World Direct Link, Tawakal Money Services, Rasmy Pay, Taaj Financial Service, USwyre and Zola.

The NBE said transactions through unauthorised operators could expose customers and recipients to payment delays, financial losses, account restrictions and regulatory or legal action.

The regulator maintains an official register of licensed remittance providers, which it updated on August 7. It says only financial institutions licensed by the NBE are authorised to conduct money-remittance services.

The intervention comes against a backdrop of rising remittance flows. The NBE has been promoting formal remittance channels since its foreign-exchange reforms began in July 2024, including a campaign launched in September that year to encourage the use of legal remittance services.

The July 2024 reforms shifted the country towards a market-determined exchange rate and removed several restrictions on the foreign-exchange market. The changes initially brought the official and parallel-market exchange rates sharply closer together, although the gap subsequently widened again.

That gap matters for remittance providers. Where official and informal exchange rates diverge, senders can have an incentive to use channels outside the regulated system, particularly if informal operators offer recipients more favourable conversion rates.

The IMF has described the persistence of a parallel-market premium as one of the challenges facing Ethiopia's post-reform foreign-exchange market. The premium, which fell to below 5 percent in September 2024, later rose and was around 15 percent from March 2025, according to the Fund's assessment.

The authorities have since continued to deepen the foreign-exchange reforms, including measures to improve liquidity and the operation of the formal FX market. The IMF said in July that the reforms had narrowed the parallel-market premium and improved foreign-exchange liquidity in the banking system.

The NBE's latest warning therefore goes beyond consumer protection. It forms part of a wider effort to move foreign-currency transactions into channels that the central bank can supervise, measure and regulate as Ethiopia rebuilds its foreign-exchange market.

Source: FSX Business News