Lex Mundi Global Anti-Corruption Compliance Guide |
|
Ecuador |
|
| (Latin America/Caribbean) Firm Pérez Bustamante & Ponce Updated 10 Feb 2020 | |
| What is the key anti-bribery and corruption legislation in your jurisdiction? | The key anti-bribery and anti-corruption legislation in Ecuador is the Criminal Code (“Código Orgánico Integral Penal”). The Criminal Code contains several offenses that relate to the offering, payment and receipt of bribes by domestic government officials, including bribery, influence peddling, embezzlement, unlawful enrichment, and extortion. |
| Has there been a specific anti-bribery and corruption law enacted in your jurisdiction in the last ten years? | No, there has not been a specific anti-bribery and anti-corruption law enacted in Ecuador in the last ten years. However, after a general referendum held on February 4, 2018, the Criminal Code was amended to create criminal liability for corporate entities that commit bribery, influence peddling, and use of a straw man. In addition, the referendum amended the Constitution, the Electoral Law (“Ley Orgánica Electoral y de Organizaciones Políticas”), and the Public Servant Law ("Ley Orgánica del Servidor Publico") to create additional criminal, civil, and administrative penalties for individuals and entities found guilty of bribery, influence peddling, and other corruption-related crimes. |
| Is a bribe payment to domestic government officials prohibited by the legislation? | Yes, bribe payments to domestic government officials are prohibited under the Ecuadorian Criminal Code, article 280. It prohibits offering, promising, or giving an undue economic benefit to a public servant or a person acting under state authority to act, omit, expedite, delay or condition action in connection with his/her public duties. |
| Is a bribe payment to foreign government officials prohibited by the legislation? | No. Ecuador has no legislation that specifically prohibits bribe payments to foreign government officials. |
| Is requesting or accepting a bribe prohibited by the legislation? | Yes, Criminal Code article 280 prohibits government officials from receiving or accepting bribes. |
| Who is subject to the legislation? | Both foreign and national individuals may be held liable under the Criminal Code. In addition, the law applies to legal entities for the commission of certain crimes such as money laundering, environmental crimes, among others. Under the February 2018 Criminal Code amendment, corporate entities are now liable for bribery and influence peddling. |
| Is there criminal liability for corporate entities who have either paid or accepted a bribe payment? | Yes, corporate entities can be held criminally liable for bribe payments. |
| What is the penalty for individuals violating the law? | Under the Criminal Code, individuals who are guilty of bribery, whether active or passive, may be sentenced to prison for a period ranging from one to seven years. In addition, as outlined in our response above to "Has there been a specific anti-bribery and corruption law enacted in your jurisdiction in the last ten years?", the referendum held on February 4, 2018, amended several laws to create an additional criminal, civil, and administrative penalties. Individuals found guilty of bribery and other corruption-related crimes will be banned from (1) running for office in general elections, (2) obtaining public employment or exercising public office, and (3) contracting with public entities. |
| Assuming corporate entities are liable for violating the legislation, what is the penalty for corporate entities violating the law? | Under the latest amendment to the Criminal Code, corporate entities that are found guilty of bribery will be subject to the following penalties:
The entity may be ordered to respond with its property to fully compensate the Ecuadorian State and society. |
| Assuming corporate entities are liable for violating the legislation, does having a compliance program designed to prevent bribery constitute a defense? | No, a compliance program is not considered a defense. |
| Assuming corporate entities are liable for violating the anticorruption law, is it possible for a corporate entity to reach a deferred prosecution agreement or leniency agreement with the enforcement authorities? | No, Ecuadorian criminal law does not provide for deferred prosecution agreements or leniency agreements for corporations that cooperate or self-disclose a violation. However, for individuals, it does provide the possibility of seeking before the sentencing judge a reduction in penalties based on effective cooperation (“cooperación eficaz”). |
Lex Mundi Global Anti-Corruption Compliance Guide
The key anti-bribery and anti-corruption legislation in Ecuador is the Criminal Code (“Código Orgánico Integral Penal”). The Criminal Code contains several offenses that relate to the offering, payment and receipt of bribes by domestic government officials, including bribery, influence peddling, embezzlement, unlawful enrichment, and extortion.
No, there has not been a specific anti-bribery and anti-corruption law enacted in Ecuador in the last ten years.
However, after a general referendum held on February 4, 2018, the Criminal Code was amended to create criminal liability for corporate entities that commit bribery, influence peddling, and use of a straw man.
In addition, the referendum amended the Constitution, the Electoral Law (“Ley Orgánica Electoral y de Organizaciones Políticas”), and the Public Servant Law ("Ley Orgánica del Servidor Publico") to create additional criminal, civil, and administrative penalties for individuals and entities found guilty of bribery, influence peddling, and other corruption-related crimes.
Yes, bribe payments to domestic government officials are prohibited under the Ecuadorian Criminal Code, article 280. It prohibits offering, promising, or giving an undue economic benefit to a public servant or a person acting under state authority to act, omit, expedite, delay or condition action in connection with his/her public duties.
No. Ecuador has no legislation that specifically prohibits bribe payments to foreign government officials.
Yes, Criminal Code article 280 prohibits government officials from receiving or accepting bribes.
Both foreign and national individuals may be held liable under the Criminal Code. In addition, the law applies to legal entities for the commission of certain crimes such as money laundering, environmental crimes, among others. Under the February 2018 Criminal Code amendment, corporate entities are now liable for bribery and influence peddling.
Yes, corporate entities can be held criminally liable for bribe payments.
Under the Criminal Code, individuals who are guilty of bribery, whether active or passive, may be sentenced to prison for a period ranging from one to seven years.
In addition, as outlined in our response above to "Has there been a specific anti-bribery and corruption law enacted in your jurisdiction in the last ten years?", the referendum held on February 4, 2018, amended several laws to create an additional criminal, civil, and administrative penalties. Individuals found guilty of bribery and other corruption-related crimes will be banned from (1) running for office in general elections, (2) obtaining public employment or exercising public office, and (3) contracting with public entities.
Under the latest amendment to the Criminal Code, corporate entities that are found guilty of bribery will be subject to the following penalties:
- a fine ranging between five hundred and one thousand basic salaries (approximately, $200,000 to $400,000 in 2020), and
- dissolution and liquidation of the entity.
The entity may be ordered to respond with its property to fully compensate the Ecuadorian State and society.
No, a compliance program is not considered a defense.
No, Ecuadorian criminal law does not provide for deferred prosecution agreements or leniency agreements for corporations that cooperate or self-disclose a violation. However, for individuals, it does provide the possibility of seeking before the sentencing judge a reduction in penalties based on effective cooperation (“cooperación eficaz”).