Financial Crime World

Money Laundering in Ecuador: Analysis of Judgments

Overview

The issue of money laundering in Ecuador is a serious concern that has significant consequences on the economy and inhabitants. This article examines 31 cases involving money laundering to identify patterns and characteristics, highlighting the importance of preventing and controlling this illicit activity.

Key Findings

Demographics of Money Laundering Operations

  • Foreign participation: Foreigners have a significant presence in money laundering operations, with a participation rate of 52%.
  • Male dominance: Males are more likely to be involved in money laundering, accounting for 74% of participants.
  • Higher sums: The majority of money laundered is done by males who enter higher sums into the country.

Methods Used to Camouflage and Legalize Illicit Funds

  • Shell corporations: Creating shell corporations that serve as fronts for illegal activities
  • International airports: Using international airports in large provinces as entry points for laundered money

Consequences of Money Laundering

Money laundering can lead to serious consequences, including:

Economic Instability and Loss of Income for the Public Sector

  • Economic instability and loss of income for the public sector
  • Weakening of the private sector
  • Rise of crime and suffering among those involved

Recommendations for Combating Money Laundering

To combat money laundering, it is recommended that:

Create a Culture of Prevention

  • Set control measures in place to prevent and detect illicit activities

References

This article was informed by various studies and reports on the issue of money laundering in Ecuador. The following references were used:

  • Accountability Report (2019)
  • Andrade, J. (2009)
  • Bareño, D.S. (2009)
  • Calderón, J.E. (2017)
  • Calleja, E.C., & Marcos, L.D. (2013)
  • Cobo, J.M. (2001)
  • Eslava, J. (2013)
  • Esteban, H., Robledo, J., Capra, M., & Pérez, P. (2012)
  • FINCEN (2017)
  • Fuller, N. (2008)
  • GAFILAT (2017)
  • Gilmour, N. (2015)
  • Hopton, D. (2016)
  • Inter-American Development Bank (2017)
  • Internal Rents Service (2017)
  • Luo, X. (2014)
  • Ministry of Interior (2018)
  • Ministry of Justice (2014)
  • National Assembly of Ecuador (2010)
  • Normah, O., Amirah, J., & Roshayani, A. (2014)