Ecuador’s Financial Crime Policies and Procedures Under Scrutiny

A recent evaluation by the Financial Action Task Force (FATF) has assessed Ecuador’s compliance with international standards for fighting financial crime. The report, released in 2023, provides a comprehensive overview of Ecuador’s strengths and weaknesses in implementing technical requirements.

Ecuador’s Assessment

Ecuador’s assessment reveals a mixed performance across various areas. While it has made significant progress in some aspects, such as the regulation and supervision of financial institutions, it faces challenges in others, including the confiscation and provisional measures, and the regulation and supervision of designated non-financial businesses and professions (DNFBPs).

Progress Made

• Regulation and supervision of financial institutions
• Targeted financial sanctions related to terrorism and terrorist financing (R.6)
• Regulation of wire transfers (R.16)
• Establishment of a financial intelligence unit (R.29)
• Provision of guidance and feedback (R.34)

Areas Requiring Improvement

• Confiscation of proceeds of crime
• Regulation of correspondent banking
• Confiscation and provisional measures (R.4)
• Regulation and supervision of DNFBPs (R.28)
• Powers of supervisors (R.27)

Recommendations from the FATF Evaluation

Implementing these recommendations will be crucial for Ecuador to effectively combat financial crime and maintain its commitment to transparency and integrity.

Strengthening Financial Crime Policies and Procedures

By addressing the areas where it is partially compliant or non-compliant, Ecuador can further strengthen its financial crime policies and procedures, enhancing its reputation as a transparent and responsible financial actor.