Anti-Money Laundering (AML) Regulations and Laws in Ecuador
Risk-based Approach
The Anti-Money Laundering (AML) regulation in Ecuador is risk-based oriented, meaning that institutions of the financial sector should implement procedures to oversee transactions based on the level of risk associated with each customer or transaction.
Key Customer Due Diligence (KYC) Procedures
Institutions of the financial sector should implement KYC procedures to:
- Oversee transactions
- Follow up on unusual transactions
- Report to correspondent authorities if any suspicious activities arise
Reporting Requirements
Suspicious activity reports (SARs) must be made to UAF Ecuador. Transactions performed within the financial system exceeding certain amounts must also be reported, as well as those considered suspicious and unusual.
Penalties for Non-Compliance
Infractions arise from lack of compliance with reporting requirements, and sanctions may be imposed on individuals and entities involved.
Automated Suspicious Transaction Tools
Entities are entitled to develop or use their own technological resources to monitor suspicious activities.
Authorization for Transactions
In the case of a transaction identified as suspicious, involved parties must report the customer’s data and operation.
Data Protection
The Constitution guarantees the right to protection of personal data, which includes access and decision on this type of data, as well as its corresponding protection. The Superintendence of Banks on Right to Protection establishes that users are entitled to receive protection and demand effective measures to guarantee the security of financial operations.
Sensitive Data Protections
The Constitution prohibits gathering, filing, processing, distribution, or publishing personal data without authorization.
Restrictions on Transfer of Credit Reports
Personal data related to religious beliefs, political affiliation, or health status must not be required or used without authorization.
National ID Card Details
National ID card details are mandatory for identification purposes.
Passport Photo
Passport photos are practical guidance for identification.
Frequency and Submission of External Reports
The external auditor conducts an annual review of the AML systems and controls. Results are submitted to the Board of Directors.
These points provide an overview of the key aspects related to Anti-Money Laundering (AML) regulations and laws in Ecuador.