Ethiopia’s Information Network and Security Agency (INSA) and the United States Federal Bureau of Investigation (FBI) are collaborating to curb illicit financial flows between the two countries — a growing concern that has undermined Ethiopia’s economic stability, foreign currency reserves, and national security.
According to sources familiar with the matter, investigations are underway targeting several unlicensed money transfer operations used by members of the Ethiopian diaspora to send funds back home through informal black-market networks. In the Washington, D.C. metropolitan area, two agents are under FBI investigation, while three others are reportedly being scrutinized in Minneapolis–Saint Paul, Minnesota — home to some of the largest Ethiopian diaspora communities in the U.S.
These unregulated networks, though often viewed as convenient alternatives to formal remittance channels, have been identified by both U.S. and Ethiopian authorities as conduits for money laundering, tax evasion, and illicit currency speculation. Once converted through parallel markets, such funds distort exchange rates and widen the gap between official and black-market values.
Abren previously highlighted the growing threat of illicit financial flows in an October analysis, “Ethiopia’s Financial Stability and Remittance: A Balancing Act”, which detailed how billions of birr circulate through unregulated channels each year — weakening the country’s monetary policy and exposing its financial system to criminal exploitation.
In addition, illicit financial circulators and shadow bankers are been linked to armed militant groups in the Horn of Africa, including many rebel factions and the terrorist designed, Al-Shabab in Somalia.
Crackdown Inside Ethiopia
The international investigation coincides with Ethiopia’s own nationwide crackdown on illegal currency trading. As reported by IntelliNews on November 8, 122 individuals were arrested and 519 bank accounts frozen during a coordinated national operation targeting illicit money exchangers.
The Ethiopian government has since warned that additional legal measures will follow, describing the effort as essential to stabilizing foreign-exchange markets, restoring public confidence in the birr, and preventing illicit funding for violent and terrorist groups in the region.
Officials in Addis Ababa view the U.S. collaboration as part of a broader strategy — recognizing that the black-market currency problem is transnational, spanning communities and jurisdictions across continents.
A Shift Toward Financial Sovereignty
Analysts say the partnership reflects Ethiopia’s expanding capacity for financial and cyber intelligence, led by INSA’s strengthened mandate under the country’s national security reforms. Once focused primarily on digital defense, INSA now plays a central role in monitoring suspicious financial patterns and online transaction networks.
The FBI’s involvement underscores a shared concern: informal remittance systems, often rooted in trust-based community exchanges, are increasingly exploited by criminal actors — including human traffickers, counterfeiters, and currency speculators.
While legitimate remittances remain vital to Ethiopia’s economy, providing more than $5 billion annually, both governments appear intent on ensuring that these lifelines serve families — not illicit markets.
The Road Ahead
As Ethiopia deepens its economic reforms, the crackdown on illicit money transfers marks a broader pursuit of financial transparency and national resilience. The success of this Ethiopia–U.S. collaboration could set an international precedent for how developing nations engage diaspora communities while safeguarding their economies.
For Ethiopia, the message is clear: The era of unchecked parallel money markets is nearing its end.
