Ecuador

New Documents

US, Ecuador Reiterate Commitment to Fighting Financial Crime, Terrorism

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.

February 14, 2020

Swiss Federal Council: Protocol Amending DTA with Ecuador Comes into Force

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.

May 7, 2019

Basel Institute, Ecuador’s FIU Sign Financial Crime Cooperation Agreement

December 7, 2018

Switzerland, Ecuador Sign DTA Amendment Protocol

July 27, 2017

Ecuador Releases List of Public Official Positions Considered PEPs (in Spanish)

January 23, 2014

News

Weekly Roundup: US Officials Following Danske Bank Investigations, FCPA Ruling May Fuel Money Laundering Cases, and More

China suspects illicit finance through domestic movie industry, U.N. officials find Iran in compliance with nuclear agreement, and more, in this week’s roundup.

August 31, 2018

Weekly Roundup: PDVSA Suspects Arrested In Panama, Wife of UK Banker Challenges NCA, and More

U.S. judge sentences PetroEcuador attorney for laundering bribes, Iran fires central bank chief, and more, in this week’s roundup.

July 27, 2018

Weekly Roundup: US Prosecutors Defend Settlement, Australian Bank Accused of New Breaches, and More

December 15, 2017

Midweek Roundup: Wells Fargo Settles Money Laundering Charges, US Officials Investigate Russian Funds Transfers, and More

November 15, 2017

Midweek Roundup: Societe Generale Investigated for Olympic Bribery, Canadian Casino Tied to Terror Finance, and More

October 4, 2017

Enforcement Actions

0 Items Found

Key Documents

Ecuador Requires STR Reporting, Creates National AML Council (in Spanish)

December 30, 2010

Ecuador Outlines Sanctions for Non-Compliance of AML Laws (in Spanish)

March 1, 2012

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