Opinions about law that obliges banks to report withdrawals

The circular sent by the Superintendency of Banks (SB)that request to financial institutions  to report the customers card number, amount and channel of withdrawals greater than USD 5 000 in a month. Likewise, to report the withdrawals of more than USD 100 000 of the companies.

The Superintendent of banks, Christian Cruz, said on Wednesday that reports of natural persons are only when making withdrawals “cash” over USD 5 000, but the circular not points out that is in cash. The document refers to withdrawals “through any channel”. The circular also contains errors of wording: referring to the companies, the text points out that it is for withdrawals “equal to or greater than $100 000,00 (five thousand dollars, oo/100)…” (sic).

The last May 26 circular also does not explains the reasons underpinning the order. Francisco Cevallos, Sempértegui Ontaneda lawyers lawyer, said that in the country there is an absolute secrecy of banking information, but partial. The internal revenue service or judicial authorities may request banking information under stealth.

What worries is that the circular is not duly motivated, i.e., to explain the objectives, legal basis and purpose of the requested information. “I would expect that this information the authority has required it by an issue of crossroads of information only or to monitor the amount of liquidity”, said the Superintendent of banks, Christian Cruz.

Carlos Mazón, an expert on financial issues, said: “I do not see the use of control of money laundering when withdrawing resources, because we already justified the legality of those funds when we are making the bank deposit”. In addition, he says, banks must report any unusual movement to the financial intelligence unit.

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Sources: http://www.elcomercio.com/actualidad/bancos-cedula-clientes-impuestos-rafaelcorrea.html