Ecuador

New Documents

U.S. President Donald J. Trump and President of Ecuador Lenín Moreno issued a joint statement regarding bilateral ties between the countries, in particular their shared commitment to strengthening security cooperation and combating transnational crime, drug trafficking and money laundering.

According to the press release issued by the Federal Council of Switzerland the protocol amending the double taxation agreement between Switzerland and Ecuador has come into force on April 17, 2019.

News

Enforcement Actions

0 Items Found


Important Facts

  • The U.S. State Department labels Ecuador as a major money laundering country. It is a major drug transit country with money laundering frequently committed through trade, commercial activity, and cash couriers. Bulk cash smuggling and structuring are also common activities surrounding the significant transit of illicit cash. In addition, corruption, and a lack of specialized AML expertise in the judiciary, law enforcement and banking regulators hinder Ecuador's efforts to improve AML enforcement and prosecutions. Frequent misinterpretation of the law and a lack of adequate training within the judiciary have contributed to the corruption problem. Other persistent money laundering problems in the country are associated with narcotrafficking, real estate transactions, embezzlement, tax fraud, illegal mining, gold smuggling, human trafficking and cross-border commercial activity with Colombia. In addition, credit unions and private banks are not effectively regulated. The country limits law enforcement’s ability to investigate and prosecute money laundering, giving authorities only 30 days to investigate money laundering charges against bulk cash smugglers to prove that the money came from illicit activity. The State Department notes that officials under investigation for money laundering frequently flee Ecuador until the statute of limitations expires. Ecuador has enhanced due diligence for politically exposed persons and public officials are prohibited from maintaining assets in countries designated as tax havens. In 2019, the country's financial intelligence unit referred 13 possible money laundering cases to law enforcement authorities, though the country does not publicize statistics on money laundering-related prosecutions and convictions. Additionally, the State Department notes that Ecuador recovered $18.5 million in illicit assets during the year.
-Source: 2020 International Narcotics Control Strategy Report (INCSR)

Rankings

FATF i

Technical Effectiveness
Compliant : 1 High :
Largely Compliant : 13 Substantial :
Partially Compliant : 29 Moderate :
Non-Compliant : 6 Low :

BASEL i

Rank : 84/141
Score : 4.89/10

TRANSPARENCY INTERNATIONAL i

Rank : 93/180
Score : 38/100

Tax Justice Network i

Rank : 120/133
Score : 47/100