New technological tools aim to improve financial system transparency and combat organized crime financing.

The Superintendency of Banks in Ecuador has launched a significant anti-money laundering project called “Clear,” aimed at enhancing the country’s ability to detect and prevent illicit financial activities. Presented on July 17th in Quito, the initiative is a joint effort between Ecuador, the U.S. government, and the Organization of American States (OAS).

This project seeks to bolster Ecuador’s financial transparency and security by implementing cutting-edge technology to combat money laundering, a major contributor to organized crime. According to Roberto Romero, Ecuador’s Superintendent of Banks, the international nature of financial crimes demands increasingly sophisticated tools. “Financial crimes transcend borders,” he stated. “This partnership with the U.S. will help provide the technology needed to address these crimes.”

Lawrence Petroni, the U.S. Chargé d’Affaires, emphasized the importance of tackling money laundering to curtail organized crime. “Money laundering allows criminals to conceal the financial proceeds of illegal activities like drug trafficking, human trafficking, and corruption. This project is a critical step in cutting off these financial flows,” Petroni explained.

Politically Exposed Persons Monitoring

One of the project’s most notable components is the implementation of a platform for monitoring Politically Exposed Persons (PEPs), including their families and close associates. The platform, currently in the pilot phase, has already registered over 62,341 individuals across 23 financial institutions. The platform is set to officially launch in October 2025, giving banks the ability to monitor the financial activities of these individuals.

The $55,000 investment in this platform will allow authorities to identify financial risks associated with PEPs and track transactions they send or receive across borders. By monitoring these activities, the government hopes to uncover hidden illicit financial flows that might be channeled through the Ecuadorian financial system.

Traceability of High-Denomination Banknotes

Another key aspect of the “Clear” project is the traceability of high-denomination banknotes, particularly $100 and $50 bills, which are often used in money laundering schemes. According to the Superintendency of Banks, $801.5 million in high-denomination bills have entered the financial system since January 2024. Most of these bills—over $700 million—are $100 notes.

Francisco Garzón, the general superintendent of the Superintendency of Banks, highlighted that these bills are being tracked using advanced georeferencing techniques. “The goal is to track the path of these bills, from their entry into the financial system to their final destination,” Garzón said. “Understanding their movements will help us determine their legitimacy.”

The data shows that the largest amounts of high-denomination banknotes have entered from the provinces of Guayas, Zamora Chinchipe, and Loja. In some provinces, single transactions have amounted to nearly $1 million.

High Expectations for Impact

The project is expected to significantly reduce money laundering in Ecuador, which is currently the second most prevalent form of organized crime in the country, behind drug trafficking. The financial sector’s efforts, backed by the U.S. Embassy, will help identify suspicious activities earlier in the process, potentially preventing money laundering before it can escalate.

“By cutting off the financial resources of organized crime, we will ultimately limit the power of criminal organizations operating in Ecuador,” Petroni remarked.

With the collaboration of international partners and the implementation of advanced tracking systems, Ecuador’s efforts to combat money laundering and organized crime are poised to make significant progress, strengthening the nation’s financial system.