Ecuador’s Focus on Preventing Money-Laundering: Understanding the Role of Compliance Officers
Maintaining a Healthy Business Environment in Ecuador
As Ecuador’s economy continues to grow and attract foreign businesses, the government has implemented a robust compliance system to ensure a healthy business environment. At the heart of this system are corporate compliance officers who work with companies to prevent money laundering and other financial crimes.
The Financial and Economic Analysis Unit (UAFE)
The UAFE is responsible for controlling the corporate compliance environment in Ecuador. Compliance officers, either employed internally or outsourced under contract, must be qualified by the UAFE before taking on their role. They have a critical responsibility: ensuring that companies comply with laws set by local authorities to restrict all forms of money laundering.
Compliance Officers’ Tasks and Obligations
Compliance officers in Ecuador are tasked with:
- Submitting reports: Using the form and structure issued by the Financial and Economic Analysis Unit (UAFE), according to the sector in which it belongs.
- Coordinating reporting activities: With the UAFE to adequately fulfill the obligations of the obliged subject in matters of money laundering.
- Reviewing consolidated United Nations lists: Periodically reviewing the list of minimum charges for politically exposed persons (PEPs).
- Reporting training received by personnel: To the UAFE on the training received by personnel, related to legal and regulatory provisions, as well as internal manuals, policies, and procedures on prevention and detection of money laundering and financing of terrorism.
Company Tasks and Obligations
Companies must also comply with various regulations and requirements. Key tasks include:
- Monitoring compliance: With instructions for the prevention of money laundering and terrorist financing crimes.
- Performing controls: On transactions that equal or exceed specific thresholds determined by the UAFE.
- Cooperating with the UAFE: In the timely delivery of information as requested.
- Communicating to personnel: About the strict reservation with which information requirements must be maintained.
Compliance Reports
Compliance rules are embedded within various reports filed by compliance officers. According to Article 19 of the Regulation to the Organic Law on Prevention, Detection, and Eradication of the Crime of Money Laundering and Crime Financing, these include:
- Reports of unusual transactions: Reports of operations and individual transactions whose amount is equal to or greater than ten thousand dollars of the United States of America or the equivalent in other currencies.
- Reports of company operations: Reports of a company’s national and international operations that exceed legal thresholds.
Acquiring Local Support
Complying with governmental standards for becoming a compliance officer can be challenging due to language barriers or required qualifications. A useful alternative is acquiring a local partner who could become the compliance officer for your company and file the right reports to remain compliant.
Biz Latin Hub has been assisting companies to successfully conduct business in Latin America since 2014. Our local team of experts can assist you with your business needs in Ecuador. For personalized support, reach out to country manager Diego Mauricio Alvarez at here. We are ready when you are.
Disclaimer
The information provided within this should not be construed as formal guidance or advice. Please consult a professional for your specific situation. Information provided is for informative purposes only and may not capture all pertinent laws, standards, and best practices. The regulatory landscape is continually evolving; information mentioned may be outdated and/or could undergo changes.