Financial Crime World

Anti-Money Laundering (AML) Regulations in Chile

Chile has implemented Anti-Money Laundering regulations to prevent and detect financial crimes. These regulations apply to all financial institutions, requiring them to conduct due diligence on customers and report suspicious activities.

Risk-Based Approach

  • Chile follows a risk-based approach to AML, similar to the Financial Action Task Force (FATF) recommendations.
    • This means that institutions must assess their clients’ risks and take measures accordingly.

Customer Due Diligence (CDD)

  • All new customers, individuals and legal entities, require CDD.
  • For individuals:
    • Obtain:
      • Name
      • ID number or passport number
      • Citizenship
      • Profession or degree/occupation
      • Country of residence
      • Address in Chile or the country of origin
      • Email or phone number
      • Purpose of the legal or contractual relationship

Enhanced Due Diligence (EDD)

  • Apply EDD measures to:
    • Politically Exposed Persons (PEPs)
    • Electronic funds transfers considered high-risk
    • Individuals and members listed in “Comité de Sanciones ONU” (UN sanctions)
    • Countries and jurisdictions under GAFI monitoring
    • Certain tax regimes

Politically Exposed Persons (PEPs)

  • Obtain information on:
    • The intended nature of the relationship with PEPs
    • Their origin of funds
    • Their assets
    • The purpose of acts or transactions
    • Approval from senior management to begin a legal or contractual relationship
    • Additional information from the client, updated more frequently than regular clients

Record Keeping and Reporting

  • Keep records for at least five years.
  • Inform the Financial Analysis Unit (UAF) when required about cash operations greater than USD 10,000.
  • Report suspicious activities to UAF via the provided website.
  • If a customer refuses to provide necessary information or submits false documentation, consider it as an alert and send to UAF by means of a Suspicious Activity Report (SAR).

Penalties

  • Hiding or disguising the origin of illicit funds in Chile is punishable by:
    • Imprisonment from five years and one day to fifteen years
    • Fines of up to one thousand monthly tax units
  • Specific attention is paid to the amount involved and the seriousness of consequences for public enterprises.