Ecuador’s Focus on Compliance: A Guide to the Role of Corporate Compliance Officers
As Ecuador continues to emerge as a hub for international business, companies are being encouraged to expand their operations into the country. With its strong and stable economy, low barriers to entry, and range of business opportunities, it is no surprise that many are taking advantage of this growing market.
The Importance of Corporate Compliance
However, with any expansion comes the need to comply with local regulations and laws. In Ecuador, one of the key areas of focus for businesses is corporate compliance, particularly in regards to preventing money laundering.
The Role of Compliance Officers
Compliance officers in Ecuador are responsible for working internally within companies or under contract with companies to provide a standard of work that enforces the country’s desire to restrict all forms of money laundering. These officers must be qualified before the public entity that controls corporate compliance, known as the Unidad de Análisis Financiero y Económico (UAJE).
- Submitting reports using a specific form and structure issued by the UAFE
- Coordinating reporting activities with the UAFE
- Periodically reviewing lists of persons involved in terrorist activities
- Reporting to the UAFE on training received and planned
Company Tasks and Obligations
Companies must also fulfill certain obligations to remain compliant. These tasks include:
- Monitoring compliance with instructions for preventing money laundering and terrorist financing crimes
- Performing controls on transactions that equal or exceed specific thresholds
- Cooperating with the UAFE in the timely delivery of information
- Communicating with personnel about the importance of maintaining confidentiality
Compliance Reports
Compliance officers must file various reports with the UAFE, including:
- Reports of unusual and unjustified economic transactions
- Operations and individual transactions above a certain threshold
- Company national and international operations that exceed legal thresholds
- Operations carried out with jurisdictions considered tax havens by Ecuador (mandatory)
Local Support
While complying with governmental standards may prove difficult due to language barriers or required qualifications, acquiring a local partner can be a useful alternative. A local partner in Ecuador could become the compliance officer for your company and file the right reports to remain compliant.
Biz Latin Hub has been assisting companies to successfully conduct business in Latin America since 2014 and offers personalized support for businesses looking to expand into Ecuador.
Important Note
The information provided here is intended to serve as a general guide only and should not be construed as formal guidance or advice. Please consult a professional for your specific situation.