Ecuador’s Congress Approves Law to Target Criminal Economies Amid Soaring Violence

On June 7, 2025, Ecuador’s National Assembly approved the National Solidarity Law, a legislative response to the country’s deepening security crisis.

President Daniel Noboa proposed the law as an urgent measure to counter the surge in organized crime and its economic influence.

The law passed with 84 votes after a four-hour debate and now awaits the president’s signature.

Ecuador’s security situation has deteriorated rapidly. Official figures show the homicide rate jumped from 6 per 100,000 residents in 2018 to 47 per 100,000 in 2023, the highest in South America.

In the first four months of 2025, Ecuador recorded 3,087 violent deaths.

Criminal groups linked to international cartels have infiltrated the economy, using drug trafficking, extortion, and illegal activities to finance their operations.

The country’s dollarized financial system has made it a target for money laundering and illicit financial flows. The new law introduces harsher penalties for organized crime.

It increases sentences for crimes related to the oil sector from 22 to 26 years and sets up stricter rules for prosecuting money laundering, obstruction of justice, extortionate kidnapping, and recruiting minors.

The law also establishes a special legal regime to investigate criminal economies that have penetrated the financial system.

Ecuador’s Congress Approves Law to Target Criminal Economies Amid Soaring Violence

Only specialized judges and prosecutors will handle these cases, aiming to reduce corruption and improve results.

The law provides incentives for private companies to support police and military operations through donations, and it directs assets seized from criminal organizations to fund security forces.

It includes measures for the protection and compensation of civilians affected by violence, with special attention to vulnerable groups in conflict zones.

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The law also requires regular disciplinary and financial reviews for police and military personnel to prevent corruption.

Ecuador’s government declared an internal armed conflict in January 2024, allowing the military to take a leading role in confronting criminal gangs.

The law’s approval signals a unified political stance against organized crime, but the opposition questions the effectiveness of these measures, citing the lack of visible improvements in security.

Ecuador’s business climate has suffered. Violence and insecurity have disrupted supply chains, increased costs, and discouraged investment.

The law aims to restore confidence by weakening criminal economies, protecting legitimate businesses, and stabilizing affected regions.

The government hopes these steps will help Ecuador regain stability and economic growth.