Regulatory Alerts2015-06-04 | JB-2015-3447Banking Board of Ecuador Resolution JB-2015-3447
The Banking Board of Ecuador issued Resolution JB-2015-3447 to uphold a US$1.5 million personal fine against Engineer Juan José Castelló, Executive President of the Ecuadorian Teaching Pension Fund, for violating social security and banking regulations. The resolution confirms that the Fund’s "Preferred Single Account" and its sponsorship of the Sabanilla Hydroelectric Plant project breached national laws by offering non-pension benefits, unequal interest rates, and allowing unaffiliated retirees to bypass individual account liquidation. The Board rejected Castelló’s administrative review appeal, ruling that the Fund’s internal bylaws cannot supersede hierarchically superior statutes and that the imposed sanctions were properly motivated and legally justified.