By means of Executive Decree No. 298, dated January 30, 2026, the President of the Republic enacted the General Regulations to the Organic Law on the Prevention, Detection, and Combat of the Crime of Money Laundering and the Financing of Other Crimes (the Regulations).
These Regulations seek to consolidate a robust institutional and operational framework for the prevention, detection, and sanctioning of money laundering, terrorist financing, and other related offenses, aligned with international standards and grounded in a risk-based approach.
- General Approach and Guiding Principles
The Regulations are structured around a comprehensive preventive approach, expressly adopting the risk-based approach as a cross-cutting criterion for the identification, assessment, and mitigation of threats associated with money laundering, terrorist financing, and the proliferation financing of weapons of mass destruction.
Within this framework, the Regulations establish general guidelines that enable:
- Coordination among public entities, the private sector, and supervisory authorities;
- Adoption of technical methodologies aligned with international standards; and
- Strengthening of institutional and corporate governance in matters of regulatory compliance.
Additionally, the Regulations provide for the periodic execution of national risk assessment exercises, the results of which must serve as input for the formulation of public policies and for the implementation of internal risk management systems by obligated entities.
- Determination and Management of Obligated Entities
One of the most significant aspects of the Regulations is the establishment of technical criteria for the inclusion, exclusion, or modification of the obligations applicable to obligated entities. Such determination is based on an objective analysis that considers, among other factors:
- The level of residual risk associated with the economic activity carried out;
- Trends, typologies, and patterns identified in relation to money laundering and crime financing;
- Regional threats and their potential impact on the State’s economic and financial security; and
- Information derived from national-level risk assessment processes.
Based on these criteria, the Financial and Economic Analysis Unit (UAFE) is empowered to define and update reporting structures, as well as the technical manuals applicable to each sector, ensuring the proportionality of obligations and their alignment with the identified level of risk.
- Compliance Programs and Internal Controls
The Regulations require obligated entities to implement a comprehensive program for the prevention and management of risks related to money laundering, terrorist financing, and the financing of the proliferation of weapons of mass destruction, designed in accordance with the structure and nature of their activities and with the regulations issued by the competent supervisory authority or the UAFE.
Such program must be set forth in a Money Laundering and Crime Financing Prevention Manual, which must be prepared, approved, implemented, and registered with the relevant authority.
At a minimum, the compliance program must include:
- Policies, procedures, and controls for risk management;
- Mechanisms for the detection of unusual, unjustified, or suspicious transactions; and
- Timely reporting of such transactions to the UAFE within the established statutory timeframe.
Likewise, obligated entities must maintain sufficient and verifiable information regarding their clients and beneficial owners, as well as the transactions conducted, using reliable and trustworthy means.
- Reporting Regime and Information Obligations
The reporting system constitutes one of the core operational pillars of the Regulations and is designed as an essential tool for the effective functioning of the prevention system. Obligated entities must submit information to the UAFE on a periodic, complete, and timely basis, in accordance with the applicable technical parameters.
Key reporting obligations include:
- Suspicious Transaction Reports (ROS);
- Record of Non-Existence of Suspicious Transaction Reports (NO ROS);
- Reports of individual transactions equal to or exceeding ten thousand United States dollars (USD 10,000), as well as multiple transactions which, in the aggregate, are equal to or exceed such amount when conducted for the benefit of the same individual within a thirty (30) day period (RESU); and
- Record of Non-Existence of Reports of individual transactions equal to or exceeding ten thousand United States dollars (USD 10,000) or its equivalent in other currencies (NO RESU).
- Access, Confidentiality, and Use of Information
The Regulations reinforce the authority of the UAFE to require information from public entities and obligated entities. Such information must be provided in a complete and timely manner, without invoking confidentiality, secrecy, or privilege.
Key aspects include:
- UAFE classifies information in accordance with the Organic Intelligence Law;
- Failure to provide the required information results in administrative sanctions, without prejudice to other applicable liabilities; and
- The establishment of a secure whistleblower channel, ensuring the protection of the reporting individual’s identity.
- Politically Exposed Persons (PEPs)
The Regulations clearly define who qualifies as a Politically Exposed Person (PEP), including individuals who hold or have held senior public positions at the national or international level, as well as those who perform prominent functions within international organizations.
The Regulations provide that:
- PEP status remains in effect for two (2) years following the cessation of public office;
- Being classified as a PEP does not imply the denial of services, but rather the application of enhanced due diligence measures; and
- Obligated entities must obtain approval from senior management to initiate or maintain the business relationship.
- Transportation of Cash, Precious Metals, and Precious Stones
Travelers entering or exiting the country are required to declare before the National Customs Service of Ecuador (SENAE) any cash, bearer negotiable instruments, precious metals, or precious stones whose value is equal to or exceeds USD 10,000, whether individually or jointly.
- Administrative Sanctions Regime
The Regulations set forth proportionality criteria for the imposition of administrative sanctions, considering the severity of the infringement, the damage caused, and any recurrence.
Violations are sanctioned with fines expressed in Unified Minimum Wages (SBU), as follows:
- Minor: 1 to 10 SBU
- Serious: 11 to 20 SBU
- Severe: 21 to 40 SBU
