Ethiopian intelligence and law-enforcement agencies have launched one of the country’s widest coordinated operations targeting underground foreign currency markets, resulting in the arrest of 112 suspects, including both Ethiopian citizens and foreign nationals. The arrests come amid government efforts to stabilize the macro-economy, curb illicit capital flows, and protect the country’s limited foreign exchange reserves.

According to the National Intelligence and Security Service (NISS), the multi-agency crackdown is the result of a months-long intelligence operation focused on dismantling sophisticated networks involved in illegal foreign exchange dealings, money laundering, and unlicensed money transfer activities. The operation was conducted jointly with the Financial Security Service (FSS), the Ethiopian Federal Police (EFP), regional security structures, and with tips provided by community members.

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Major Operation Freezes 519 Bank Accounts and Uncovers Complex Financial Schemes

Authorities confirmed that 519 bank accounts linked to the suspects have been frozen. Investigators say these accounts were being used to circulate illicit funds, facilitate black-market currency trades, and move money across borders outside official banking channels.

Security officials say various “exhibits” were seized, including digital devices, transaction records, false documents, and foreign currency. Early assessments indicate that the networks relied on encrypted messaging apps, fake import–export records, shell businesses, and unregulated cryptocurrency platforms to bypass financial oversight.

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Illegal FX Trade Seen as a Threat to Macroeconomic Reform

NISS emphasized that these illegal financial activities have directly undermined the government’s macroeconomic reform agenda, which aims to address foreign exchange shortages, stabilize inflation, and improve transparency in the financial sector.

The agency pointed out that the networks were not merely engaging in currency speculation, but were involved in:

• Money laundering
• Foreign exchange fraud
• Tax evasion
• Illegal international money transfers (Hawala-type operations)
• Cryptocurrency-based transfers without authorization

Officials say such activities distort the market, weaken the value of the Birr, and drain legitimate foreign exchange channels at a time when Ethiopia is working to strengthen its external sector.

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Action Taken on Importers, Exporters and Unauthorized Money Transfer Operators

Authorities disclosed that the crackdown extended beyond individual brokers to include:

• Importers and exporters who manipulated documentation to divert foreign currency
• International money transfer operators whose licenses were revoked by the National Bank of Ethiopia (NBE) for repeated rule violations
• Cryptocurrency-based transfer networks operating illegally
• Unlicensed money transfer agents and brokers, some of whom were facilitating cross-border transfers linked to criminal groups

NBE has reportedly taken regulatory action against operators who deliberately bypassed its directives designed to prevent the outflow of scarce foreign currency.

Security officials also stated that owners of apps enabling illegal foreign currency transfers have been arrested, indicating the government’s intent to target the digital infrastructure underpinning these schemes.

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National Security Dimension: Illicit FX Linked to Terror Financing

The statement from NISS highlighted a strong national-security concern: illegal foreign exchange flows are believed to be supporting armed groups, terrorist organizations, and anti-state actors.

According to intelligence findings, some networks were actively working to:

• Disrupt major government development projects
• Create artificial currency shortages
• Fuel public dissatisfaction
• Undermine the broader economic recovery

Officials stressed that these activities were being conducted in a coordinated manner, showing signs of deeper political and criminal involvement.

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Crackdown Will Continue, Government Warns

NISS stated that the government will continue taking “decisive action” against groups and individuals whose financial crimes pose a threat to national security and the country’s economic stability. Authorities also encouraged citizens to continue providing information that can help expose such activities.

“The coordinated effort to protect the national economy will continue,” the service said, urging the public to remain vigilant as the government strengthens oversight over illicit financial flows.

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