Preventing and Eradicating Financial Crimes

QUITO, ECUADOR - The Ecuadorian legislature has approved a new law aimed at preventing and eradicating money laundering in the country. The law, which was adopted on July 21, extends the obligation to report suspicious financial transactions to non-financial businesses and organizations.

Key Provisions of the Law

Requires mail service providers, transportation companies that handle cash, valuables, and parcels, trust administrators, cooperatives, foundations, and non-governmental organizations to comply with the reporting obligation for transactions of more than $10,000.
Targets money laundering by tracing property transfers, possession, use, marketing, internal or external trade in property, and gratuitous or for-profit transactions of assets.
Penalizes tax fraud committed through third parties.

Strengthening Efforts to Prevent Financial Crimes

Under the new law, the Financial Analysis Unit will become an autonomous body within the Coordinating Ministry of Economic Policy and change its name to the Unit of Financial and Economic Analysis. The law aims to detect money laundering in a more proactive manner, according to its sponsor.

Ecuador Joins Latin American Countries in Combating Financial Crimes

Ecuador joins other countries in Latin America that have implemented anti-money laundering laws to combat financial crimes. The new law demonstrates the government’s commitment to preventing money laundering and promoting transparency in financial transactions.

Key Provisions of the New Law at a Glance:

Requires non-financial businesses and organizations to report suspicious financial transactions of more than $10,000
Targets money laundering by tracing property transfers, possession, use, marketing, internal or external trade in property, and gratuitous or for-profit transactions of assets
Penalizes tax fraud committed through third parties
Establishes the Unit of Financial and Economic Analysis as an autonomous body within the Coordinating Ministry of Economic Policy

Article Prepared by:

This article was prepared by Graciela Rodriguez Ferrand, a contributing editor for Global Legal Monitor.