The fifth supplement of Registro Oficial No. 700 dated December 10, 2024, publishes the Decree containing the ORGANIC LAW FOR THE IMPROVEMENT OF COLLECTION THROUGH THE FIGHT AGAINST ASSETS LAUNDERING. The Law prescribes reforms in tax, anti-money laundering, monetary and financial, sports and corporate matters. The following is a summary of its contents.
Tax Reforms
1.- It establishes a tax to the transfer of used motor vehicles destined to land transportation . Thus, it repeals the 1% tax on the purchase value [for the same concept]. The tax rate will be up to 5%, according to the regulation to be issued.
The purchasers of a used vehicle are obliged to pay the tax. They will also be jointly and severally liable for the tax caused in previous transactions in which the tax has not been paid; in such case, they will be able to repeat against the previous owners of the vehicle.
2.- The generating fact is the transfer of ownership of a used vehicle, which is perfected by means of recognition of signatures in the corresponding purchase contract [before notary or judge].
The tax must be paid in financial institutions, within up to 30 days after the date of the acknowledgement of signatures. The payment of the tax will be considered a prerequisite to register the motor vehicle.
3.- The taxable base of the tax is the sale price of the vehicle, which may not be less than its appraisal according to the SRI database.
Money laundering reforms
4.- The Law includes reforms aimed at strengthening the management of the Financial Analysis and Economic Analysis Unit (Unidad de Análisis Financiero y – UAFE). Thus, it is established that the General Director of the UAFE will be appointed by the President of the Republic.
5.- To this effect, the UAFE is empowered to:
(a) Request the competent judicial authority to order, as a precautionary measure, the freezing of funds in case of noticing suspicious transactions.
(b) Impose and collect fines [with the corresponding coercive jurisdiction for such purpose], for non-compliance with duties by the obligated parties.
(c) Notifying the State Attorney General’s Office or the State Attorney General’s Office in cases that are budget to operate the extinction of domain according to the Law.
6.- In any case, it states that reports of suspicious transactions, as well as all information contained in the databases of the UAFE, is reserved or secret. Information that can be shared with public entities for the exercise of the action of forfeiture of ownership.
7.- The following are also considered financial regulated entities:
(a) Companies that carry out financial activities technological.
(b) Insurance companies that underwrite or place life insurance, or related savings insurance, [with or without a credit loss component].
(c)
Insurance companies that carry out operations in the
branches provided for in the legal system.
These companies are granted a period of 90 days to develop the technological tool necessary to send information in real time to UAFE, according to the corresponding institutional requirements.
8.- Requires regulated entities to report suspicious activities within 5 days to the UAFE, from the moment they become aware of them.
9.- It includes, as entities obliged to implement prevention, control and supervision measures of the anti-money laundering regulations [with a risk-based approach], the following :
(a) Customs agents.
(b)
Foundations, societies and/or non-governmental non-profit organizations
that receive resources from
Ecuador and/or from abroad.
Monetary and financial reforms
10.- It includes, as means of payment, those centered on technology such as the providers of virtual assets , to the extent that they have the respective authorization (license) from the Superintendency of Banks.
11.- It considers, as suppliers of virtual assets, those whose activity is the exchange of virtual assets and legal tender currencies, the exchange of different virtual assets or their transfer; as well as the custody or administration of such assets . Likewise, the provision of financial services related to the offer or sale of a virtual asset is considered an activity of providers of virtual assets.
12.- For its part, considers as a virtual asset any representation of value recorded and stored electronically. This, to the extent that it can be unequivocally identified [even when fractioned] and is used as a means of payment, provided that its transfer can be carried out only by electronic means.
Reforms in corporate matters
13.- Creates the figure of Sociedad Anónima Deportiva, which will be subject to the provisions of the Companies Law, as well as and the Law of Sports, Physical Education and Recreation.
14.- The Superintendence of Companies, Securities and Insurance will issue, within 90 days, the regulations for that sports clubs, teams or other non-profit civil societies that participate in professional sports, may adopt the figure of Sociedades Anónimas Deportivas.
Sports reforms
15.- It establishes that the professional athlete who participates in collective sports is the one who maintains a regular and dependent relationship with a Sports Corporation, and practices such collective sport in exchange for remuneration. Additionally, the reform prescribes that the athlete has the right to enter into a contract with the Sports Corporation in accordance with labor regulations. Such contract will stipulate remuneration, schedules, image rights and other necessary clauses.
16.- The reform provides that the sports clubs or teams participating in professional sports may adopt the legal form of Sports Corporations. A natural or legal person may not participate in the capital or administration of more than one Sports Corporation in the same sport.
Likewise, a Sports Corporation may be the federative owner of more than one club, as long as they do not simultaneously compete in the same sport, category and series at .
Reforms in other areas
18.- Any contract, agreement,
agreement or similar entered into with private law persons with respect to technological means
for recording traffic violations may only stipulate, as
object, the provision of technological services and the maintenance service
and start-up of the technology and equipment. The consideration will not be
conditioned to the amounts collected from fines for traffic violations
.
Quito D.M. / Guayaquil, December 2024
