diff --git a/go/consensus/tendermint/apps/staking/transactions_test.go b/go/consensus/tendermint/apps/staking/transactions_test.go
new file mode 100644
index 00000000000..4261c193232
--- /dev/null
+++ b/go/consensus/tendermint/apps/staking/transactions_test.go
@@ -0,0 +1,65 @@
+package staking
+
+import (
+	"testing"
+
+	"github.com/stretchr/testify/require"
+
+	"github.com/oasislabs/oasis-core/go/common/crypto/signature"
+	staking "github.com/oasislabs/oasis-core/go/staking/api"
+)
+
+func literalPublicKeyHex(h string) (k signature.PublicKey) {
+	if err := k.UnmarshalHex(h); err != nil {
+		panic(err)
+	}
+	return
+}
+
+func TestIsTransferPermitted(t *testing.T) {
+	for _, tt := range []struct {
+		msg       string
+		params    *staking.ConsensusParameters
+		fromID    signature.PublicKey
+		permitted bool
+	}{
+		{
+			"no disablement",
+			&staking.ConsensusParameters{},
+			signature.PublicKey{},
+			true,
+		},
+		{
+			"all disabled",
+			&staking.ConsensusParameters{
+				DisableTransfers: true,
+			},
+			signature.PublicKey{},
+			false,
+		},
+		{
+			"not whitelisted",
+			&staking.ConsensusParameters{
+				DisableTransfers: true,
+				UndisableTransfersFrom: map[signature.PublicKey]bool{
+					signature.PublicKey{1}: true,
+				},
+			},
+			signature.PublicKey{},
+			false,
+		},
+		{
+			"whitelisted",
+			&staking.ConsensusParameters{
+				DisableTransfers: true,
+				UndisableTransfersFrom: map[signature.PublicKey]bool{
+					signature.PublicKey{}: true,
+				},
+			},
+			signature.PublicKey{},
+			true,
+		},
+	} {
+		require.Equal(t, tt.permitted, isTransferPermitted(tt.params, tt.fromID), tt.msg)
+	}
+}