Financial Crime World

Financial Crime Reporting Requirements in Ecuador Need Improvement, Says FATF Report

Quito, Ecuador

A recent report by the Financial Action Task Force (FATF) has identified areas where Ecuador can improve its anti-money laundering and counter-terrorist financing (AML/CFT) measures.

Progress Made by Ecuador

Ecuador has made significant strides in strengthening customer due diligence requirements for financial institutions. The country has also improved reporting mechanisms for suspicious transactions, making it easier to identify and investigate potential cases of financial crime.

  • Enhanced customer due diligence: Financial institutions in Ecuador are now required to implement robust customer due diligence procedures to prevent money laundering and terrorist financing.
  • Improved reporting mechanisms: Suspicious transaction reports (STRs) can be submitted electronically, reducing the time it takes for financial institutions to report suspicious activity.

Areas for Improvement

The FATF report highlights several areas where Ecuador needs to improve its AML/CFT measures, including:

Financial Intelligence Unit (FIU)

  • Effectiveness: The FIU’s ability to analyze and disseminate strategic intelligence on money laundering and terrorist financing is a concern.
  • Resources: The FIU requires additional resources to effectively perform its duties.

Regulation and Supervision of Non-Financial Businesses and Professions

  • Compliance: There are concerns about the compliance of non-financial businesses and professions with AML/CFT regulations.
  • Risk assessment: A risk-based approach is not being implemented consistently across all sectors.

Recommendations from FATF

The report recommends that Ecuador:

  • Increase public awareness: Public awareness campaigns should be launched to educate citizens on the risks of financial crime.
  • Implement effective measures: The government should implement more effective measures to protect its financial system.

Ecuador’s membership in GAFILAT, a regional body that coordinates AML/CFT efforts among 35 Latin American and Caribbean countries, makes it subject to the FATF Recommendations on AML/CFT. The full report is available on the GAFILAT website in Spanish.