Frequently Asked Questions about AML/CTF Prevention in Ecuador

<p>The <strong>SPARLAFTD</strong> is the System for the Prevention of Money Laundering, Terrorist Financing and other Crimes required by Ecuadorian regulation. Every <em>regulated entity</em> (sujeto obligado) —an entity legally required to maintain an AML/CTF prevention system and report to the UAFE— must implement it.</p>

<p>Any individual or legal entity whose economic activity legally requires it to implement an AML/CTF prevention system and file reports with the Financial and Economic Analysis Unit (UAFE). Each sector has its own control body —for example, the Superintendency of Companies, Securities and Insurance (SCVS) for the corporate sector and the SEPS for credit unions.</p>

<p>Yes. The <strong>Compliance Officer</strong> is responsible for the SPARLAFTD before the UAFE: they coordinate system implementation, customer due diligence, the risk matrix and report filing. It is a role required of regulated entities.</p>

<p>The <strong>ROS</strong> (Suspicious Transaction Report) is filed with the UAFE when an unusual transaction, or one lacking apparent economic justification, is detected. The <strong>RESU</strong> (Cash Transaction Report) reports cash transactions exceeding the threshold set by regulation. They are distinct and complementary reports.</p>

<p>It is the tool with which a regulated entity identifies, assesses, controls and monitors its money-laundering and terrorist-financing risk. It weighs client, product/service, channel and geographic risk, and is the basis for applying risk-proportionate due diligence.</p>

<p>They are people who hold or held prominent public functions —elected authorities and public officials— as well as their close associates. Their exposure requires enhanced due diligence. In Ecuador their identification relies on the database of Resolution UAFE-DG-2020-0090.</p>

<p>At minimum the OFAC, INTERPOL and UN lists, the PEP list and the applicable national lists. Screening must be done when onboarding the client and periodically throughout the relationship. Tools such as <a href="/servicios/aplasoft">AplaSoft</a> automate this monitoring.</p>

<p>Companies classified as regulated entities under SCVS supervision that meet at least one of these parameters based on the previous year's financial statements: assets equal to or above USD 500,000, revenue equal to or above USD 1,000,000, or transactions reported to the UAFE of USD 1,000,000 or more. Its legal basis is Article 34 of the AML/CTF Organic Law and Resolution SCVS-INC-DNCDN-2024-0005. Learn about the <a href="/servicios/consultoria-laft">SPARLAFTD External Audit</a> service.</p>

<p>It is grounded in the Organic Law for the Prevention, Detection and Combat of Money Laundering and the Financing of other Crimes, in UAFE and SCVS resolutions, and in the international standards of the FATF (GAFI). You can review it in detail in our <a href="/normativas/ec">Regulations</a> section.</p>