Ecuador Urged to Enhance Anti-Money Laundering Efforts

A recent report from the Financial Action Task Force (FATF) has highlighted best practices for anti-money laundering and counter-terrorist financing measures in Ecuador, while also identifying areas where the country needs to improve.

Mutual Evaluation Process

As a member of GAFILAT, the regional body responsible for coordinating anti-money laundering efforts among 35 countries in Latin America and the Caribbean, Ecuador was subject to a mutual evaluation process led by GAFILAT. The assessment evaluated the country’s implementation of FATF Recommendations, including measures to prevent money laundering, terrorist financing, and other illicit activities.

Strengthened Customer Due Diligence Requirements

The report praised Ecuador for strengthening customer due diligence requirements for financial institutions, improving reporting mechanisms for suspicious transactions, and enhancing cooperation with international partners to share intelligence on anti-money laundering and counter-terrorist financing efforts.

However, the report also identified areas where Ecuador needs to improve:

Enhancing the Effectiveness of its Financial Intelligence Unit (FIU)

• The report noted that Ecuador’s FIU could benefit from increased resources and more effective coordination with other law enforcement agencies.
• This would enable the FIU to better identify, investigate, and disrupt money laundering and terrorist financing activities.

Improving Regulation and Supervision of Non-Financial Businesses and Professions

• The report highlighted the need for more robust regulations and supervisory mechanisms to prevent anti-money laundering and counter-terrorist financing in non-financial sectors, such as real estate and art dealers.
• This would help to prevent these sectors from being used for illicit activities.

Increasing Public Awareness of AML/CFT Risks

• The report emphasized the importance of educating the public about the risks associated with anti-money laundering and counter-terrorist financing.
• This would help to promote a culture of transparency and accountability in Ecuador’s financial system.

Recommendations for Improvement

The FATF recommends that Ecuador address these gaps by implementing more effective measures to prevent financial crime and protect its financial system. By doing so, Ecuador can strengthen its reputation as a transparent and trustworthy partner in regional and international efforts against money laundering and terrorist financing.

The full report is available on the GAFILAT website in Spanish only.