International tax transparency has become a key pillar in the fight against evasion and in ensuring effective revenue collection. Driven by the OECD and G20, information exchange has seen growing global adoption. In Latin America, Ecuador has emerged as a significant player since 2018, joining critical multilateral agreements.

Ecuador’s Accession to the Multilateral Convention (MAAC)

On October 29, 2018, at the OECD headquarters in Paris, the Director of Ecuador’s Internal Revenue Service (SRI) signed the Multilateral Convention on Mutual Administrative Assistance in Tax Matters (MAAC), making Ecuador the 126th jurisdiction to join.

This convention enables mechanisms such as exchange of information upon request, spontaneous and automatic exchange, international tax audits, and assistance in tax collection — all under strong safeguards for taxpayer rights.

Its significance lies in the following:

• A legal framework for international tax cooperation
• Access to data on offshore accounts
• Integration into global tax transparency platforms

CRS: The Common Reporting Standard for Automatic Exchange

The Common Reporting Standard (CRS), developed by the OECD and G20 in 2014, enables the annual automatic exchange of financial account data between participating jurisdictions. Ecuador signed the CRS Multilateral Competent Authority Agreement (CRS-MCAA) on October 29, 2018, and began exchanging information in September 2021.

As of March this year, over 110 countries have signed the agreement, including Ecuador, which maintains approximately 7,500 exchange relationships.

Key advantages of this standard include:

• Detection of undeclared offshore assets
• Reduction of illicit financial flows
• Harmonization of tax compliance standards

Practical Implications for Taxpayers and Investors

The combined implementation of the MAAC and CRS-MCAA means that individuals and entities in Ecuador are now subject to:

• Mandatory reporting of offshore assets
• Increased risk of penalties for failure to disclose information
• Financial institutions gaining access to cross-referenced data
• The need for proactive international tax advice to avoid potential liabilities

Backed by robust privacy safeguards, this system enables strategic and lawful oversight of global assets.

Key Challenges for Ecuador and the Region

Despite significant progress in international tax transparency—such as the adoption of CRS, MAAC, and FATCA by several countries—Ecuador and South America still face structural and operational challenges that limit the real impact of automatic information exchange, including:

• Effective use of received information. According to the OECD’s Transparency in Latin America 2025 report, while many countries — including Ecuador — are already receiving offshore financial information through CRS, they face major challenges in processing and utilizing that data for tax audits, enforcement, and collection.
  Part of the solution lies in training tax authorities in specialized software, risk analysis, and automated data-matching systems.
• Limited technological infrastructure. Receiving data under the CRS framework requires secure, standardized systems (in XML format), protected by encryption, and connected to international networks such as the Common Transmission System (CTS).
  Yet many countries still lack fully developed digital infrastructure or sufficient redundancy to avoid operational disruptions.
• Outdated or insufficient domestic legal frameworks. According to the Inter-American Center of Tax Administrations (CIAT), some South American countries face legal loopholes that hinder their ability to properly sanction the non-disclosure of offshore assets or to regulate the reporting obligations of local financial institutions.
  There is also a noticeable lack of alignment between tax regulations and data protection laws.
• Institutional capacity and human resources. Ecuador’s Internal Revenue Service (SRI) notes that many tax administrations across the region face shortages of qualified personnel in areas such as international tax analysis, digital auditing, and technical cooperation.
  This limits their ability to carry out audits, impose sanctions, or conduct cross-checks using data received from abroad.
• Sophisticated evasion and opaque structures. According to the OECD, as the exchange of banking information becomes stronger, tax evaders are turning to increasingly complex mechanisms — including cryptocurrencies, trusts, foundations, and entities based in low-transparency jurisdictions.
  Many Latin American tax authorities lack the legal and technical frameworks needed to audit these emerging methods of asset concealment.

International tax transparency in Ecuador and across South America is a growing reality, yet it still faces significant technical, legal, and institutional challenges. While international cooperation is in place, its real impact depends on how effectively the information is used.

To make automatic information exchange truly effective, countries must invest in technological infrastructure, update their legal frameworks, train specialized personnel, and strengthen regional cooperation. For taxpayers and investors, international tax compliance is essential to protect assets and operate without legal or financial risks.

Consult our ILP Global – Gallegos, Valarezo & Neira members, who have the experience and global reach to help you review your structures, comply with international transparency standards, and take full advantage of the applicable legal frameworks.

Spanish version > Ecuador adopta importantes avances hacia la transparencia fiscal internacional