Ethiopian authorities have arrested more than 100 people and frozen over 500 bank accounts in a sweeping operation targeting illegal foreign exchange and cryptocurrency transactions, the National Intelligence and Security Service (NISS) said on Friday.
The coordinated operation, conducted with the Financial Security Service, the Ethiopian Federal Police, and regional security agencies, comes amid the National Bank of Ethiopia’s (NBE) wider efforts to safeguard the financial system and curb illicit currency flows.
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According to NISS, 112 Ethiopians and several foreign nationals were detained for conducting unauthorized money transfers, money laundering, tax evasion, and foreign exchange embezzlement. Authorities said 519 bank accounts linked to the suspects have been frozen and a range of evidence seized.
The arrests also target operators allegedly using cryptocurrency and illegal remittance applications to transfer funds abroad, bypassing the formal banking system. Officials said such activities have fueled black-market foreign exchange trade and deprived the economy of critical foreign currency inflows.
The National Bank of Ethiopia recently announced that it had intensified its actions against unlicensed money transfer agents and hawala networks, emphasizing that these measures aim to “maintain financial integrity and restore confidence in the formal FX system.”
Authorities added that some international hawala dealers have had their licenses revoked for repeatedly violating NBE directives intended to ensure that remittances from Ethiopians abroad are channeled through legal means.
NISS said the crackdown would continue, describing illicit financial networks as a threat to national stability and a key channel for funding terrorism and armed groups.
Source: Tikvah Ethiopia & National Bank of Ethiopia
