KEYIR NEWS - The National Bank of Ethiopia (NBE) has issued a strong public advisory, warning Ethiopian diaspora communities, particularly in the United States, against engaging with unauthorised entities offering unregulated trust-based financial services.
The cautionary notice follows reports that several organisations based in Silver Spring, Maryland, Falls Church, Virginia, and Minneapolis, Minnesota have been attempting to establish financial cooperatives and trust services aimed at Ethiopian nationals abroad. However, these organisations are not licensed by the NBE, rendering their operations illegal under Ethiopian law.
“Any individual or group engaging in financial trust services must obtain proper authorisation from the National Bank,” the statement reads. “Unlicensed operations expose participants to serious financial risk and possible legal ramifications.”
- Netsuh Ginbot Mahber – Silver Spring, MD / Falls Church, VA
- YeEthiopia Tiri Mahber – Falls Church, VA / Silver Spring, MD
- Wolde Zion (SIAM) – Falls Church, VA
- Kidusan Ginbot Mahber – Minneapolis, MN
According to the Bank, these groups have been mobilising funds and forming community-based financial structures without registering with the regulatory authority. The National bank stressed that such initiatives must be brought under formal oversight to ensure transparency, accountability, and protection for participants.
While acknowledging the diaspora’s vital role in remittance flows and developmental investment, the NBE reaffirmed that all diaspora-led initiatives must conform to existing regulatory frameworks.
The NBE urged Ethiopian citizens at home and abroad to verify any financial institution or trust group through the official Trust Services Directory, available at: https://nbe.gov.et/mfa
Additionally, citizens are encouraged to report suspicious activity or operations involving financial contributions, investments, or trust agreements that appear unauthorised.
“Our priority is to uphold the credibility of Ethiopia’s financial system,” the Bank concluded. “The diaspora is a strategic partner, but engagement must remain within the bounds of legal and institutional order.”
By STAFF REPORTER