Financial Crime World

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Ecuador Takes Steps to Improve AML/CFT Compliance

In its latest evaluation, Ecuador has made significant progress in implementing the technical requirements of the Financial Action Task Force (FATF) Recommendations. The country’s rating reflects a strong commitment to combating money laundering and terrorist financing.

Strengths

  • Ecuador excelled in assessing risk and applying a risk-based approach to anti-money laundering (AML) and combating the financing of terrorism (CFT).
  • Effective national cooperation and coordination among authorities were demonstrated.
  • Laws related to money laundering and terrorist financing were strengthened, and measures were implemented to confiscate proceeds from criminal activities.

Areas for Improvement

  • Strengthening regulations related to non-profit organizations is still needed.
  • Customer due diligence requirements need to be more robustly implemented.
  • Gaps in internal controls and foreign branches/subsidiaries exist.
  • Measures related to new technologies and wire transfers, as well as relying on third parties to conduct AML/CFT checks, require further development.

Progress in Implementing New Technologies and Wire Transfers

Ecuador has made progress in implementing measures related to:

  • New technologies
  • Wire transfers
  • Relying on third parties to conduct AML/CFT checks

Strengthened Financial Intelligence Unit and Law Enforcement Authorities

The country’s financial intelligence unit has been strengthened, and law enforcement authorities have been empowered to take effective action against money laundering and terrorist financing.

Conclusion

Ecuador’s efforts to improve its AML/CFT regime are welcome, but more needs to be done to ensure full compliance with FATF standards. The country must continue to strengthen its regulatory framework and implement effective measures to prevent the misuse of its financial system.