Ecuador Strengthens Anti-Money Laundering Regulations to Attract Investors
Ecuador’s financial system has undergone significant changes in recent years as the country strives to meet international standards and improve accounting practices. As a result, the government is working to strengthen its anti-money laundering (AML) regulations to maintain and boost international business confidence.
What is Anti-Money Laundering?
Money laundering refers to the process of introducing illicitly obtained funds into a country’s legal financial system. This crime can occur on a large scale in businesses, particularly those involved in sectors such as finance, real estate, and trade. AML legislation aims to reduce corporate abuse of power and call out companies with inadequate internal controls that facilitate money laundering.
International Anti-Money Laundering Legislation
Ecuador aligns itself with global associations dedicated to preventing money laundering, including the Association of Certified Anti-Money Laundering Specialists (ACAMS). ACAMS provides training, certifications, and international AML standards for professionals operating in financial areas. This serves as a standardized source of information for setting internal processes.
Regulatory Body in Ecuador
The Financial and Economic Analysis Unit (UAFE) was created in 2005 to combat money laundering and financing of crimes. The UAFE establishes criteria for identifying obligated subjects, which includes commercial entities that must submit reports on their internal financial procedures. Obligated subjects must appoint a Compliance Officer, prepare an AML manual, and conduct due diligence on internal monetary procedures.
Complying with Local AML Regulations
To comply with Ecuador’s AML regulations, businesses must:
- Appoint a Compliance Officer: with local experience and training
- Prepare an AML Manual: detailing points established by the UAFE
- Submit Monthly Reports: of transactions valued over US$10,000
- Present an Annual Report: to representatives or shareholders
Ecuadorian Accounting Teams
Ecuadorian accounting teams play a crucial role in implementing asset laundering prevention processes. Partnering with trained personnel can help ensure compliance with AML law.
Positive Moves for Regional Economic Power
Ecuador’s strong economic growth and development of internationally recognized commercial standards make it an attractive destination for foreign business and investment. With a pro-business government and strategically advantageous position in Latin America, Ecuador is well-positioned to compete with the region’s top economic performers.
Working with Experts
At Biz Latin Hub, our Ecuador team has highly trained personnel in AML legislation and commercial procedures. We can help businesses with market entry, back-office needs, and implementing AML processes. Partnering with a trusted local expert will make expansion into the local business environment smoother.