Financial Crime World

Ecuador Steps Up Efforts to Combat Financial Crimes Amid Wave of Violence

A Bid to Tackle Organized Crime’s Financial Structures

Ecuador’s government has launched a specialized unit to investigate tax and customs fraud, money laundering, and tax evasion as part of its efforts to combat white-collar crime and the influence of criminal groups in politics, institutions, and the state.

A Growing Concern

“This problem has arisen in recent years, related to white-collar crime and the influence of crime in the upper echelons of politics, the state, and institutions,” said Dr. Daniel Pontón, a security expert and professor at the School of Security and Defense of Ecuador’s Higher National Studies Institute. “It’s essential to respond institutionally as organized crime has to penetrate the government because it cannot survive on its own, but rather in collusion with State action in general.”

The New Unit: A Coordinated Institutional Effort

The new unit is a coordinated institutional effort that will support the work against criminal groups carried out by other entities such as the Attorney General’s Office and the Comptroller General’s Office.

  • Key Objectives
    • Investigate tax and customs fraud, money laundering, and tax evasion
    • Support the work against criminal groups carried out by other institutions

Challenging Convictions for Money Laundering

Despite efforts from these institutions, convictions for money laundering have been rare. Between 2015 and 2020, there was an average of only three convictions per year, while between 2020 and 2022, there was just one conviction, according to studies conducted by think tank International Crisis Group.

  • Key Statistics
    • Average of 3 convictions per year (2015-2020)
    • Only 1 conviction in the past 2 years (2020-2022)

Strengthening Institutions and International Cooperation

The launch of the specialized unit comes as Ecuador is grappling with a wave of violence attributed to organized crime groups. The government’s efforts have been supported by international partners, including the United States and the European Union.

  • Key Partnerships
    • United States: Donated C-130 aircraft for increased capacity in fighting transnational crime and natural disasters
    • European Union: Pledged support for Ecuador’s efforts to combat organized crime