Financial Crime World

The State of Organized Crime in Ecuador: A Comprehensive Report

Penitentiary Crisis

Ecuador’s prison system is plagued by dysfunction, with little to no control from the state. The consequences are severe:

  • Prisons are overcrowded and violent, resulting in hundreds of murders each year.
  • Conflicts between gangs lead to chaos and instability within the prisons.
  • The police unit dedicated to combating organized crime faces significant challenges due to limited resources, bureaucratic delays, and frequent rotations.

Police Effectiveness

The national police has lost credibility due to high-profile crimes involving active officers. This has weakened trust in law enforcement:

  • Police are poorly equipped, with outdated vehicles and equipment.
  • Community policing units have been closed, making it difficult to implement prevention strategies.
  • The lack of effective community policing weakens the ability of the police to prevent crime.

Economic and Financial Environment

Ecuador’s economy is vulnerable to money laundering, with a high risk of this crime being used for terrorist financing:

  • Investigations move at a slow pace due to lack of funding and bureaucratic delays.
  • The economic sectors most frequently used for criminal activities include mining, real estate, car sales, banking, tourism, and the NGO space.

Civil Society and Social Protection

The national system to protect victims and witnesses is resource-constrained and conditional on participation in the judicial process:

  • The police occasionally launch prevention campaigns, but these are often weakened by the closure of community policing units.
  • The government retains excessive regulatory power over NGOs and media, hindering their ability to investigate crimes.

Overall Impact

Ecuador’s economic growth rate has decreased due to a decline in state investment and expenditure:

  • The public debt has reached historic levels, putting at risk the economic well-being of the national economy and future governments.
  • International risk assessment agencies still classify Ecuador as a moderate-risk country.