Financial Crime World

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AML/CFT Regulations in Chile

Chile has a robust set of regulations to prevent money laundering and the financing of terrorism. Here are the key points regarding AML/CFT regulations in Chile.

General Requirements

  • Two-Tier Jurisdiction for Electronic Signatures: Chile has a two-tier jurisdiction for electronic signatures, which includes simple electronic signatures and digital signatures.
  • Presumption of Validity: Electronic signatures are presumed valid unless proof to the contrary is produced.

AML Regulations

  • Enforcement by UAF: The Unidad de Análisis Financiero (“UAF”) is responsible for enforcing AML regulations in Chile.
  • Risk Management Systems: Enhanced due diligence, know your customer, know your employee, and know your supplier are all systems that must be configured as a tool of risk management to prevent money laundering and the financing of terrorism.

Identification Requirements

  • National ID Card Details: National ID card details are compulsory at 18, and must be carried at all times.
  • Passport Photographs: Passport photographs can be used for identification purposes.
  • Independent Verification or Authentication: Independent verification or authentication is required when copies of identification documentation are provided.

Sensitive Data

  • Personal Data: Personal data, such as national ID card details and passport photographs, are considered sensitive data.
  • Treatment Requirements: Treatment of sensitive data requires the data subject’s authorisation, unless it is treated by a government or public organisation within its legal faculties.

Medical Data

  • Sensitivity Classification: Medical data is also considered sensitive data and requires the data subject’s authorisation for treatment, except when required for granting health benefits to the data subject.

Criminal Records

  • Sensitivity Classification: Criminal records are considered sensitive data and require the data subject’s authorisation for treatment.
  • Statute of Limitation Exceptions: However, administrative penalties or disciplinary faults cannot be communicated after the statute of limitation period has elapsed, except in cases where such information is requested by courts of justice or other competent authorities.

Bank Secrecy Law

  • Deposits and Investments: Deposits and investments are subject to bank secrecy.
  • Other Operations: Other operations are under reserve.

Risk-Based Approach

  • AML Regulations Requirements: Chile’s AML regulations require a risk-based approach, which includes enhanced due diligence, know your customer, know your employee, and know your supplier.

Transfer of Information

  • Regulatory Framework: There is no specific regulation in AML regarding the transfer of information to this jurisdiction.
  • Constitutional Considerations: However, Article 19 N° 4 of the Chilean Constitution sets forth the constitutional right of respect and protection of private life and honour of an individual and their family. If this constitutional right is breached or violated, it may impact upon the transfer of information to this jurisdiction.

Electronic Signatures

  • Enforcement in Chile: Chile’s laws provide for the enforcement of both simple electronic signatures and digital signatures.
  • Legislative Recognition: Article 3 of Law 19.799 recognizes electronic signatures as legal and enforceable.
  • Admissibility Provisions: Articles 5 provides for their admissibility.