Ecuador Country Summary

FATF Status

Ecuador is on the FATF List of Countries that have been identified as having strategic AML deficiencies

Compliance with FATF Recommendations

The last Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Ecuador was undertaken in 2022. According to that Evaluation, Ecuador was deemed Compliant for 10 and Largely Compliant for 18 of the FATF 40 Recommendations. It was deemed Highly effective for 0 and Substantially Effective for 1 of the Effectiveness & Technical Compliance ratings.

Mutual Evaluation Report Recommendation Ratings

Ecuador is grappling with pervasive corruption and organized crime, significantly impacting its governance and judicial systems. High-profile corruption cases have revealed systemic issues within the judiciary, while organized crime networks, including drug trafficking and human smuggling, are exacerbated by weak law enforcement and a lack of resources, leading to a climate of impunity for corrupt officials and criminal actors alike.

Ecuador offers a range of investment opportunities across various sectors, including agriculture, aquaculture, mining, and energy, bolstered by its use of the U.S. dollar which mitigates currency risk. However, the country grapples with significant challenges such as political uncertainty, fiscal deficits, and security issues, which have hindered foreign direct investment (FDI), leading to a notable decline in FDI flows in 2024. Despite these obstacles, President Daniel Noboa's reelection in April 2025 signals a commitment to economic reform and strengthening ties with the United States, aiming to enhance legal certainty and improve the investment climate, although concerns about bureaucratic inefficiencies and corruption persist.