Financial Crime World

Ecuador Adopts New Law to Combat Money Laundering

A Significant Step Forward in Combating Financial Crimes

QUITO, ECUADOR - The Ecuadorian government has taken a major step in its fight against money laundering with the adoption of a new law that extends financial reporting requirements to non-financial businesses and organizations.

Key Provisions of the New Law

  • Expanded Reporting Requirements: Non-financial businesses and organizations are now required to report suspicious transactions involving amounts of more than $10,000 within four days.
  • New Targets for Money Laundering Detection: The law aims to detect money laundering in a more proactive manner by targeting property transfers, possession, use, and marketing of property, as well as gratuitous or for-profit transactions of assets.

Reforms Included in the New Law

  • Penalizing Tax Fraud through Third Parties: An added provision to the Integral Penal Code penalizes tax fraud committed through third parties.
  • Autonomous Financial Analysis Unit: The Financial Analysis Unit, currently under the Attorney General’s office structure, will become an autonomous body within the Coordinating Ministry of Economic Policy and change its name to the Unit of Financial and Economic Analysis.

Impact on Ecuador’s Fight Against Money Laundering

The adoption of this new law is a significant step forward in Ecuador’s efforts to combat money laundering and protect the integrity of its financial system. By extending financial reporting requirements to non-financial businesses and organizations, the government aims to detect and prevent suspicious transactions and ensure that those who engage in illicit activities are held accountable.

Conclusion

The new law represents a major commitment by the Ecuadorian government to combating money laundering and promoting transparency and accountability in its financial system. With its expanded reporting requirements and proactive approach to detecting money laundering, this law is expected to have a positive impact on Ecuador’s efforts to prevent financial crimes and protect its economy.