Ecuador Makes Progress in Combating Financing of Terrorism, but Still Faces Challenges

Overview

Ecuador has made significant strides in implementing technical requirements to combat the financing of terrorism (CFT), according to a recent report by the Financial Action Task Force (FATF). Despite this progress, the country still faces several challenges in this area.

Progress Made

According to the FATF’s Benin Follow-Up Report 2023, Ecuador has demonstrated compliance with several key recommendations. Specifically:

• It has made progress in assessing risk and applying a risk-based approach
• It has implemented national cooperation and coordination measures to combat terrorist financing
• It has received positive ratings for its efforts to confiscate and freeze assets related to terrorism and terrorist financing
• It has implemented targeted financial sanctions related to these activities
• It has strengthened regulation and supervision of financial institutions
• It has improved international cooperation on CFT matters

Challenges Remaining

Despite this progress, Ecuador still faces challenges in several areas, including:

• Non-compliance with transparency and beneficial ownership requirements for legal persons and arrangements
• Partially compliant or non-compliant ratings in areas such as:
  • Confiscation and freezing of assets related to proliferation
  • Measures to combat the use of new technologies for terrorist financing

Commitment to Improvement

Ecuador has committed to addressing these shortcomings and has outlined a plan to improve its CFT regime. The country’s efforts will be closely monitored by the FATF in the coming years, and it is expected that Ecuador will continue to make progress in this area.

Conclusion

While Ecuador still faces challenges in combating the financing of terrorism, its recent progress is encouraging and demonstrates its commitment to addressing these issues. Ecuador’s efforts will be closely watched as the country continues to work towards improving its CFT regime.