Financial Crime World

Anti-Bribery and Corruption Legislation in Ecuador

Overview

Ecuador’s key anti-bribery and corruption legislation is the Criminal Code, which contains several offenses related to bribery, influence peddling, embezzlement, unlawful enrichment, and extortion.

Key Legislation

  • Criminal Code (Código Orgánico Integral Penal): This code contains provisions that prohibit bribe payments to domestic government officials and provide penalties for individuals and corporate entities found guilty of bribery.
  • Amendment to the Criminal Code (February 2018): This amendment created criminal liability for corporate entities that commit bribery, influence peddling, and use of a straw man.

Prohibited Activities

  • Bribe Payments: Bribe payments to domestic government officials are prohibited under Article 280 of the Ecuadorian Criminal Code.
  • Receiving or Accepting Bribes: Government officials are prohibited from receiving or accepting bribes under Article 280 of the Criminal Code.

Liability and Penalties

  • Individuals: Individuals found guilty of bribery may be sentenced to prison for a period ranging from one to seven years. They will also be banned from running for office, obtaining public employment, exercising public office, and contracting with public entities.
  • Corporate Entities: Corporate entities can be held criminally liable for bribe payments. Penalties include:
    • A fine ranging between five hundred and one thousand basic salaries (approximately $200,000 to $400,000 in 2020)
    • Dissolution and liquidation of the entity
    • Ordering the entity to respond with its property to fully compensate the Ecuadorian State and society

Compliance Programs and Cooperation

  • Compliance Program: A compliance program is not considered a defense for corporate entities that are liable for violating the legislation.
  • Deferred Prosecution Agreements or Leniency Agreements: Ecuadorian criminal law does not provide for deferred prosecution agreements or leniency agreements for corporations that cooperate or self-disclose a violation. However, individuals may seek a reduction in penalties based on effective cooperation (“cooperación eficaz”).