Ecuador imposes strict AML controls on sports betting sector
Ecuador's Financial and Economic Analysis Unit (UAFE) has taken a decisive step to safeguard the integrity of the national market by formalizing Resolution number UAFE-DG-2026-0005. Through this instrument, the agency has formally incorporated sports betting operators as obligated entities to report key information for the prevention of money laundering and the financing of crimes. This measure is not accidental but responds to a technical risk assessment that identified a high level of exposure in this industry due to the complex combination of digital platforms, payment gateways, and massive cash operations carried out at physical points throughout the country.
The new regulation establishes that both natural and legal persons operating authorized sports betting platforms must become active agents of financial vigilance. To this end, companies are obliged to implement a robust risk prevention system that includes the development of a specific manual with a risk-based approach. In addition, operators must manage an official registration code with the UAFE and designate a compliance officer, who will be ultimately responsible for supervising internal policies and reporting any suspicious operations detected in the constant flow of bets.
This tightening of operational controls is in addition to the recent tax pressure exerted by the Internal Revenue Service (SRI), which has already defined the criteria for applying the 15 percent Value Added Tax (VAT) to digital services. According to Circular number NAC-DGECCGC26-00000004, betting, paid video games, and sports event streaming are already under permanent tax scrutiny. With the UAFE's entry into operational supervision, the Ecuadorian iGaming market closes the circle of fiscalization, eliminating the margins of opacity that have historically affected the industry in the region.
The new obligated entities have a period of three months to obtain their registration code after the official publication of the regulation. During this period, the UAFE has planned to conduct training sessions to ensure that the sector understands the magnitude of its new responsibilities and the importance of maintaining fund traceability. This strategic decision aims to prevent the accelerated growth of sports betting from being exploited by illicit structures, ensuring that the dynamism of the sector goes hand in hand with financial transparency that generates confidence in both regulators and end consumers.
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