Money laundering and its effect on investments in the business sector in Ecuador

Abstract

  Money laundering is the process by which assets of criminal origin are obtained that are integrated into the commercial and financial system illegally, appearing to have been obtained legally. The objective of this article is to analyze the impact of money laundering and its effect on the investments of the business sector in Ecuador. The research had a quantitative and qualitative methodological design. Bibliographic studies, documentaries, academic articles and validation of the information were carried out through interviews with focus groups, identifying the following among the main findings: In Ecuador some types of money laundering and terrorism have been identified, which affects the business sector, there is evidence of disarticulation between the companies of goods and services and control entities to apply and implement adequate strategies and procedures to mitigate the existing problem; Few training programs to raise awareness of the effects on the business sector related to the legal, reputational, economic and financial risk of their investments. It was concluded that it is necessary not only a normative proposal but also to promote a culture of prevention in the business sectors and generate multidisciplinary articulated groups for the application of effective strategies in the business sector and economic environment.   Keywords: Money and Interest Rates; Trade Policy; International Trade Organizations; Tax Evasion and Avoidance; Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy