Financial Crime World

CHILEAN FINANCIAL CRIME LAW TAKES EFFECT: NEW PARADIGM FOR CORPORATE LIABILITY AND CORRUPTION PROSECUTION

A Significant Move to Combat Financial Crime and Corruption

Santiago, Chile - The new Economic Crimes Law has come into effect, marking a major overhaul of Chile’s criminal regulations since the 1874 Criminal Code. This significant move aims to tackle financial crime and corruption by introducing various changes to combat economic and environmental crimes, as well as anti-corruption offenses.

Key Changes in the New Law

  • Corporate Criminal Liability: Legal entities, regardless of size, can now be held liable for over 300 criminal offenses, including bribery, embezzlement, and violation of secrets. This makes them more accountable for their actions.
  • New Penalties for Individuals: The law introduces a new regime of penalties for individuals who commit economic crimes, with more severe consequences than previously seen. These include fines proportionate to the individual’s income and the seriousness of the crime, as well as potential loss of profits generated from the crime.
  • Expanded List of Offenses: The law expands the list of offenses for which legal entities can be held responsible, including environmental crimes. This will have a significant impact on companies operating in Chile.
  • New Sanctions and Penalties: The law introduces new sanctions and penalties for corruption-related offenses, including bribery committed within economic activity.

Impact on Corruption Cases

Experts believe that the new law will make it easier to hold individuals and companies accountable for their actions. With its focus on aggravating and mitigating circumstances specifically designed for corruption crimes, such as the economic benefit obtained or the position of the offender within the legal entity, the law is expected to have a significant impact on the prosecution of corruption cases in Chile.

Timeline

The Economic Crimes Law will take effect in September 2024 for legal entities.

Conclusion

As the courts and Public Prosecutor’s Office begin to apply the new standards set by the Economic Crimes Law, many are hopeful that this major overhaul will help combat financial crime and corruption in Chile, ultimately benefiting society as a whole.