Financial Crime World

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Chile’s New Law Aims to Prevent and Detect Criminal Behavior

Santiago, Chile - The Chilean government has introduced a new law aimed at preventing and detecting criminal behavior, including economic crimes, in order to combat corruption and ensure transparency.

Overview of the Law

The Law on Economic Crimes, which comes into effect in August 2024, requires companies operating in Chile to establish programs to prevent and detect criminal behavior. These programs must include policies and procedures that are shared with employees and incorporated into employment contracts.

Key Provisions

  • Companies must appoint a compliance officer who will be responsible for overseeing the implementation of these programs.
  • The compliance officer or group of officers must be independent, have adequate resources, and have direct reporting lines to senior management.
  • Regular audits by third-party auditors are required to ensure that programs are operating effectively.

Impact on Chile’s Business Climate

The introduction of this new law is expected to have a positive impact on Chile’s business climate. The country has long been considered an attractive destination for foreign investment, thanks to its stable legal framework and low levels of corruption.

What This Means for Investors

For investors considering investing in Chile, it is essential to familiarize themselves with the new law and ensure that any companies they invest in have established effective programs to prevent and detect criminal behavior. This includes:

  • Ensuring companies are investigating and reviewing third-party relationships.
  • Implementing robust compliance programs.

Key Takeaways

  • The new law has significant implications for companies operating in Chile.
  • Companies must establish programs to prevent and detect criminal behavior, including economic crimes.
  • Compliance officers must be appointed to oversee the implementation of these programs.
  • Regular audits by third-party auditors are required to ensure program effectiveness.
  • Investors should familiarize themselves with the new law and ensure that any companies they invest in have established effective compliance programs.

Contact Us

If you would like more information on how we can help your company navigate the new Law on Economic Crimes in Chile, please contact:

Admitted as an attorney in Chile.