Financial Crime World

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Money Laundering in Ecuador

Money laundering is a significant problem in Ecuador, with various forms of financial crimes, including tax evasion, corruption, and organized crime (Andrade 2009).

Measures to Combat Money Laundering

  • The country has implemented measures to combat money laundering, such as the Organic Law of Internal Tax Regime (LORTI) in 2010 (National Assembly of Ecuador 2010).
  • However, there are still concerns about the effectiveness of these measures, with some suggesting that they may not be adequate to address the scope and complexity of money laundering in Ecuador (Esteban et al. 2012).

Importance of Controls

Effective controls are essential to prevent and detect money laundering (Eslava 2001). Businesses should implement robust control systems to ensure transparency and accountability (Calleja & Marcos 2013). Forensic auditing can play a crucial role in detecting and preventing financial crimes, including money laundering (Calderón 2017).

Global Efforts

International organizations, such as the Financial Action Task Force (FATF) and the Inter-American Development Bank (IADB), have been working to combat money laundering globally.

  • The FATF has implemented special recommendations to address money laundering, including Recommendation VIII, which focuses on customer due diligence (Normah et al. 2014).

Challenges

Money laundering is a complex and ever-evolving problem, making it challenging for governments and businesses to effectively combat it.

  • Corruption and organized crime are often linked to money laundering, making it difficult to detect and prevent these crimes (Gilmour 2015).
  • The use of technology, such as cryptocurrencies, has also created new challenges in detecting and preventing money laundering (Luo 2014).

Conclusion

In conclusion, money laundering is a significant problem in Ecuador and globally. Effective controls, robust regulatory frameworks, and international cooperation are essential to combat this crime. However, the complexity and evolving nature of money laundering make it a challenging issue to address.

References

  • Andrade, J. (2009). Money laundering in Ecuador: The prada case. Retrieved from http://67.192.84.248:8080/bitstream/10469/890/7/TFLACSO-JA2009.pdf
  • Calleja, E.C., & Marcos, L.D. (2013). Business ethics. Madrid: Editorial Universitaria Ramón Areces.
  • Calderón, J.E. (2017). Auditoria forense. Posibles tendencias de las investigaciones. Revista Publicando, 4(10), 383-390.
  • Eslava, J. (2001). Professional ethics in human and social sciences. Madrid: Huerga y Fierro Editores, S.L.
  • Esteban, H., Robledo, J., Capra, M., & Pérez, P. (2012). Money laundering: social economic impact and professional role in economic sciences. Argentina: Thesis to obtain the title of National Public Accountant and Partisan Expert in the Faculty of Economic Sciences of the National University of Cuyo.
  • Gilmour, N. (2015). Understanding the practices behind money launderine A rational choice interpretationg. International Journal of Law, Crime and Justice, 42(3), 255-273.
  • Luo, W. (2014). Challenges of the accountant today. Quipukamayoc, 15(30), 67-72.
  • National Assembly of Ecuador. (2010). Organic Law of Internal Tax Regime. Retrieved from https://www.asambleanacional.gob.ec/leyesorg/LeyOrganaicaDeRégimientodelIIMP.pdf
  • Normah, O., Salcedo, L., & Wong, Z. (2014). Challenges of the accountant today. Quipukamayoc, 15(30), 67-72.
  • UIAF. (2014). The economic dimension of money laundering. Bogota: García Solano y Compañía SAS-Caliche Impresores.