Ecuador Launches Bold Law to Crush Criminal Economy

Ecuador’s government unveiled a groundbreaking legislative proposal aimed at dismantling criminal economies linked to internal armed conflict. President Daniel Noboa sent this urgent economic bill to the National Assembly ahead of his four-year term beginning May 24.

The “Organic Law Project to Dismantle Criminal Economy” grants police and military forces expanded authority to use force against criminal organizations. It classifies criminals as “combatants” and allows presidential pardons for security personnel prosecuted during conflict operations.

The law targets illicit financial flows supporting armed criminal groups through economic measures. It creates mechanisms to protect the formal economy, ensure fiscal sustainability in critical zones, and recover lost tax revenue. Assets seized from criminals will fund public forces and government institutions.

Criminal code reforms establish new classifications for membership in organized armed groups. Leaders and financiers of these organizations face up to 30 years imprisonment, while members could receive 26-year sentences.

Ecuador Launches Bold Law to Crush Criminal Economy

Ecuador’s security situation has deteriorated dramatically. The country now records approximately one murder every hour, with homicide rates skyrocketing from 6 per 100,000 inhabitants in 2018 to 47 per 100,000 in 2023. Durán reported 450 murders last year, while Guayaquil saw 2,320 violent deaths.

Located between Colombia and Peru, Ecuador has become a major drug trafficking hub. Authorities seized 149 tons of drugs between January and July 2024, on track to exceed 2023’s total of 219 tons.

President Noboa has taken aggressive measures against organized crime, deploying over 1,100 security personnel to conflict zones. Human rights organizations have raised concerns about alleged abuses during these operations.

The National Assembly must review this urgent bill within 30 days.

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