Owners of a Non-Governmental Organization (NGO) must appoint and register a Compliance Officer in Ecuador according to local corporate regulations.
Non-Governmental Organizations in Ecuador, beyond having to comply with specific requirements for the operation of their activities locally, are also considered obligated subjects before the Financial and Economic Analysis Unit of Ecuador (Unidad de Análisis Financiero y Económico – UAFE).
This regulatory body is the one in charge of identifying and regulating companies or organizations whose activities could become directly related to money laundering and/or crime financing in the country.
For this reason, NGOs, like other entities, must comply with the process of registration and compliance with obligations, controls and reports to the UAFE. Part of this includes working with a Compliance Officer in Ecuador.
What is a Compliance Officer in Ecuador?
A Compliance Officer, according to the UAFE, is defined as a managerial level official responsible for
- complying with Ecuador’s regulations regarding the prevention of money laundering and financing of crimes
- executing the compliance program aimed at preventing the NGO from being used to carry out these illegal activities
- ensuring the implementation of the procedures, controls and good practices necessary for the prevention of money laundering and the financing of crimes.
Note that it is necessary to register a main Compliance Officer in Ecuador, plus an alternate. This applies whether the entity is an NGO or another type of legal entity with the same obligations under Ecuadorian law.
Requirements to register a Compliance Officer in Ecuador
In Article 13 of the Organic Law of Prevention, Detection and Eradication of the Crime of Money Laundering and Financing of Crimes, the following requirements apply in order to register a Compliance Officer in Ecuador:
- Copy of the individual’s educational qualification related to the activity carried out by the organization – this must be a tertiary degree
- If the individual does not have a tertiary degree: a certificate that accredits 3 years of experience. This must also be in accordance with the activity of the organization.
- Personal data and documents: identification, personal and corporate emails, working time in the organization, address, among others.
- Signature confirming the individual will take responsibility for the role of Compliance Officer.
NGOs and other obliged legal entity must register their Compliance Officer in Ecuador with the Financial and Economic Analysis Unit.
What are the activities that a Compliance Officer must perform?
In Article 15 of the aforementioned law, the main functions of the Compliance Officer in Ecuador establish the following roles and responsibilities:
- Carry out the corresponding controls on operations and transactions that meet or exceed the threshold of US$10,000, either individually or jointly with the same supplier.
- Present the report of said transactions monthly on or before the fifteenth day of each month.
- Monitor compliance with instructions for the prevention of money laundering and terrorist financing crimes.
- Comply with the annual training hours required by the UAFE.
Why form an NGO in Ecuador?
Non-governmental organizations are a great corporate vessel to support a cause you feel strongly about. This legal entity offers a clear platform for achieving a range of social goals, while keeping personal and organization assets separate.
There are a number of key compliance requirements apply to NGOs, including seeking a Compliance Officer in Ecuador. Those expanding their scope of activity to Ecuador must act in accordance with those requirements.
While a language barrier may cause issues for foreign executives, it is possible to obtain third-party guidance from multilingual service providers who can ensure you operate in full compliance with Ecuadorian law.
Seek help in registering your Compliance Officer in Ecuador with bilingual experts
It is of utmost importance that each NGO appoint and register a Compliance Officer in Ecuador to carry out mandated activities for the prevention of money laundering and crime financing. Compliance Officers must have the direct participation of the financial or accounting team of the organization, since all the information must be corroborated based on the established threshold and the organization’s ability to have access to high monetary resources.
In Ecuador, our team at Biz Latin Hub has personnel trained exclusively in all areas related to the prevention of corporate compliance. This may be in different types of businesses or industries.
If you are interested in learning more about this topic and obtaining advice according to your needs and expectations, talk to us at [email protected]. We will be very happy to assist you with personalized services focused on solving your possible conflicts and maximizing benefits.
Learn more about our team and expert authors.