BCE with power to punish, according to Monetary Code

The Central Bank of Ecuador (BCE for its Spanish acronym) will sanction the financial institutions with fines up to $ 800,000, in the case that these undertake clearing or liquidation operations without authorization. The Monetary and Financial Code draft establishes so, which was returned to the Assembly by President Rafael Correa with a partial veto, on Friday, August 22.

During the debates of the Code, the President of the BCE Diego Martínez argued that it was a mistake to think that the entity should only have the powers to control the interest rates, and he that raised that with this law the monetary policy instruments were resumed, as regular monetary species and liquidity.

The project indicates that the institution may apply the sanctioning administrative proceeding provisions of Article 277 thereof, which is also the superintendencies authority.