COMPLIANCE OFFICER ROLES AND RESPONSIBILITIES IN ECUADOR: A GUIDE FOR NGOs
Ecuador’s non-governmental organizations (NGOs) are required to appoint and register a Compliance Officer, as mandated by local corporate regulations. This guide provides an overview of the roles and responsibilities of a Compliance Officer in Ecuador, including registration requirements and key functions.
Why is a Compliance Officer necessary?
The Financial and Economic Analysis Unit of Ecuador (Unidad de Análisis Financiero y Económico – UAFE) is responsible for identifying and regulating companies or organizations whose activities could be directly related to money laundering and/or crime financing in the country. As an NGO, you are considered an obligated subject before the UAFE and must comply with specific requirements, including registering a Compliance Officer.
Registration Requirements
According to Article 13 of Ecuador’s Organic Law on Prevention, Detection, and Eradication of Money Laundering and Financing of Crimes, to register a Compliance Officer in Ecuador, you must provide:
- A copy of the individual’s educational qualification related to the organization’s activity (a tertiary degree) or a certificate accrediting three years of experience
- Personal data and documents, including identification, personal and corporate emails, working time in the organization, address, and others
- A signature confirming the individual will take responsibility for the role of Compliance Officer
Key Functions of a Compliance Officer
The main functions of a Compliance Officer in Ecuador are established by Article 15 of the same law, which includes:
- Carrying out controls on operations and transactions above $10,000
- Presenting monthly reports on these transactions
- Monitoring compliance with instructions for preventing money laundering and terrorist financing crimes
- Complying with annual training hours required by the UAFE
Additional Requirements
In addition to registering a Compliance Officer, NGOs must also comply with other key regulations, including:
- Separating personal and organizational assets
- Registering with the UAFE
- Providing monthly reports on transactions above $10,000
Seeking Guidance
For foreign executives facing language barriers or unfamiliarity with Ecuadorian law, it may be helpful to seek guidance from multilingual service providers who can ensure compliance with Ecuadorian regulations. Biz Latin Hub’s team of experts is trained in all areas related to corporate compliance and can provide personalized services tailored to your specific needs and expectations.
Conclusion
As an NGO in Ecuador, it is essential to have a clear platform for achieving social goals while keeping personal and organizational assets separate. By understanding the roles and responsibilities of a Compliance Officer in Ecuador, you can ensure compliance with local regulations and achieve your organization’s objectives.
If you are interested in learning more about this topic or require advice on registering a Compliance Officer in Ecuador, please contact us for assistance.