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Chile Passes Landmark Law to Combat Economic Crimes
A Major Step Towards Combating Corruption and Financial Offenses
Santiago, Chile - In a significant move towards combating economic crimes, Chile has passed a new law that imposes stricter penalties on companies and individuals found guilty of corruption and other financial offenses.
Key Provisions of the Law
- Requires companies operating in Chile to establish robust compliance programs to prevent and detect criminal activity.
- Programs must include regular monitoring and reporting to senior management, as well as the power to take corrective action when necessary.
- Imposes personal liability on high-ranking executives who engage in corrupt practices or fail to prevent criminal activity within their companies.
Boost for Foreign Investment
The new law is seen as a major boost for foreign investment in Chile, which has been a hub for international business due to its stable legal system and low corruption rates compared to other countries in Latin America and the Caribbean. The law aims to further strengthen Chile’s reputation as a reliable and attractive destination for investors.
Quotes from Experts
- “Companies operating in Chile must now take concrete steps to prevent and detect criminal activity, including establishing robust compliance programs, conducting regular monitoring and reporting, and having the power to take corrective action when necessary.” - Jeffrey Lehtman, partner at Miller & Chevalier
- “Investors must ensure that the companies they invest in have implemented effective compliance programs that meet the new standards set by this law. This includes conducting due diligence and ensuring that third-party contractors are properly vetted.” - Jeffrey Lehtman, partner at Miller & Chevalier
Impact on Companies
The law requires companies operating in Chile to take concrete steps to prevent and detect criminal activity. This includes establishing robust compliance programs, conducting regular monitoring and reporting, and having the power to take corrective action when necessary.
- Conduct due diligence on third-party contractors
- Implement effective compliance programs that meet the new standards set by this law
- Ensure senior management is informed of compliance program activities
Conclusion
The new law demonstrates Chile’s commitment to transparency and accountability. It is essential for companies operating in Chile to take this law seriously and implement effective compliance programs to ensure their success.
Contact: Jeffrey Lehtman (jlehtman@milchev.com, 202-626-1484) Margarita R. Sánchez (msanchez@milchev.com, 202-626-5808) María E. Lapetina (mlapetina@milchev.com, 202-626-1586) Florencia Fuentealba* (*Admitted as a lawyer in Chile)