Ecuador Steps Up Fight Against Financial Structures of Organized Crime

Government Establishes Specialized Unit to Combat Money Laundering and Tax Evasion

The government of Ecuador has taken a significant step in its fight against financial structures of organized crime by establishing a specialized unit to combat tax and customs fraud, money laundering, and tax evasion. This move is part of an effort to target the influence of organized crime in politics, institutions, and the state.

Expert Analysis

“This initiative makes it possible to target a problem that has arisen in recent years related to white-collar crime,” said Dr. Daniel Pontón, a security expert and professor at Ecuador’s Higher National Studies Institute. “It’s essential to respond institutionally as organized crime has to penetrate the government because it cannot survive on its own.”

Strengthening Institutional Capacity

The new unit is a coordinated effort between institutions, including the Attorney General’s Office and the Comptroller General’s Office. It aims to strengthen the capability of institutions to combat money laundering, which has been weakened in recent years.

Alarming Statistics

According to studies conducted between 2015 and 2020, there were an average of only three convictions for money laundering per year. Between 2020 and 2022, the number of convictions decreased to just one.

Ongoing Violence and Efforts Against Narco-Terrorism

The fight against financial structures of organized crime is taking place amidst a wave of violence in Ecuador. In recent weeks, several high-profile killings have taken place, including the murder of the mayor of San Vicente and her partner.

Government Response

Ecuador’s President Daniel Noboa has linked the violence to narco-terrorism and promised that those responsible will be brought to justice.

International Cooperation and Support

The government is also receiving support from international partners, including the United States, which has donated a C-130 aircraft to Ecuador’s Air Force. The aircraft will be used to combat transnational organized crime and natural disasters.

Expert Opinion

Experts say that international cooperation is crucial in the fight against financial structures of organized crime. “Alliances and support from international bodies such as the U.N. Office on Drugs and Crime [UNODC] and the Financial Action Task Force Latin America [GAFILAT] are vital,” said Glaeldys González, an Ecuadorian analyst with think tank International Crisis Group.

Strengthening Regional Support

Ecuador’s neighbors and partners have stepped up their support in recent months, offering security assistance vehicles and equipment to strengthen Ecuador’s law enforcement, military, and disaster response institutions.

Future Direction

The effectiveness of the new unit and progress in the fight against money laundering linked to drug trafficking also depends on the strengthening of international cooperation mechanisms. “Without a doubt, the support of our allies against terrorism is a key piece that contributes to dismantling transnational crimes such as drug trafficking, human trafficking, and illicit crimes committed at sea,” said Noboa.