Ecuador’s Efforts Against Financial Crimes Pay Off, Says Basel AML Index

Improved Score Reflects Progress in Combating Money Laundering and Terrorist Financing

For the second consecutive year, Ecuador has made significant strides in its efforts against money laundering and terrorist financing, according to the latest Basel AML Index report. With an index score of 5.06, Ecuador has ranked lower on the risk index, down from a score of 4.89 in 2020.

A Comprehensive Measure of Anti-Money Laundering Efforts

The Basel AML Index is a comprehensive measure that combines 16 key indicators related to:

• Corruption: Assessments from reputable organizations such as Transparency International and the World Economic Forum.
• Financial standards: Evaluations by the Financial Action Task Force (FATF) and the World Bank.
• Political disclosure: Ratings from sources like the World Economic Forum and the Economist Intelligence Unit.
• Rule of law: Assessments from organizations such as the World Justice Project and the International Institute for Democracy and Electoral Assistance.

Ecuador’s Improved Score: A Notable Milestone

Ecuador’s improved score suggests that the country is making progress in addressing money laundering and terrorist financing risks. The report serves as a valuable resource for policymakers, financial institutions, and regulatory bodies to:

• Assess the effectiveness of anti-money laundering strategies: Identify areas where improvement is needed.
• Strengthen the financial system: Reduce the likelihood of illicit activities and promote a safer economic environment.

By continuing to address these risks, Ecuador can strengthen its financial system, reduce the likelihood of illicit activities, and promote a safer and more stable economic environment.