Financial Crime World

Ecuador Takes Steps to Enhance Anti-Corruption Measures, Says FATF Evaluation

======================================================

The Financial Action Task Force (FATF) has released its 2023 mutual evaluation report on Ecuador’s anti-money laundering and combating the financing of terrorism (AML/CFT) regime. The report highlights several areas where Ecuador has made progress in implementing the technical requirements of the FATF Recommendations.

Improvements Made by Ecuador

  • Assessing risk and applying a risk-based approach: Ecuador has demonstrated significant improvements, earning a rating of “C” or compliant.
  • Strengthening national cooperation and coordination: The country has shown substantial efforts, earning a rating of “LC” or largely compliant.
  • Criminalizing money laundering and terrorist financing offenses: Ecuador has made notable progress, with areas rated as “C” or compliant.

Areas for Improvement

  • Implementing targeted financial sanctions related to terrorism and terrorist financing: Ecuador has struggled with this area, earning a rating of “PC” or partially compliant.
  • Regulating and supervising financial institutions: The country’s efforts have been rated as “LC” or largely compliant, but still require improvement.

Progress in Other Areas

  • Implementing measures to prevent money laundering and terrorist financing through non-profit organizations
  • Customer due diligence
  • Record-keeping
  • Other areas: Ecuador has made progress, but still needs to improve its reliance on third parties and internal controls.

Commitment to Address Shortcomings

Ecuador has committed to addressing the identified shortcomings and has outlined a plan to strengthen its AML/CFT regime. The country’s authorities have pledged to:

  • Enhance cooperation with international partners
  • Increase transparency
  • Improve supervision of financial institutions

Conclusion

The FATF evaluation is an important step in Ecuador’s efforts to combat money laundering and terrorist financing. The report provides valuable insights for the country’s authorities, as well as for international partners, on areas where progress has been made and where further work is needed.