Financial Crime World

Anti-Money Laundering (AML) Regulations in Chile

Chile has implemented various regulations and laws to prevent money laundering and combat financial crime. The following article provides an overview of the AML regulations applicable to different sectors in Chile.

Financial Institutions

Supervision and Regulation

  • Financial institutions supervised by the Superintendencia de Bancos e Instituciones Financieras (SBIF) are subject to AML regulations.
  • Minimum regulations on the prevention of money laundering have been issued by the Servicio de Impuestos Internos (SVS) for the securities and insurance sectors.

Obligations

  • Financial institutions must:
    • Keep records of relevant operations on physical or electronic media.
    • Retrieve information on the nature of the operation, supporting documents, and customer data for transactions exceeding $10,000 (or equivalent).

Securities and Insurance Sectors

Supervision and Regulation

  • The SVS supervises and oversees all agents operating in these sectors, imposing similar obligations regarding money laundering.
  • Circular 1680 requires institutions to:
    • Keep records of relevant operations on physical or electronic media.
    • Retrieve information on the nature of the operation, supporting documents, and customer data for transactions exceeding $10,000 (or equivalent).
  • Law 19.913 requires institutions to keep special records for at least five years and report suspicious operations to the FIU.

Stock Market

Regulation and Inspection

  • The stock market consists of securities offer, brokerage, demand, and regulation and inspection.
  • Stockbrokers and securities dealers must maintain records of all their operations and identify customers using a client record card defined by the Superintendency in General Rule No. 12.

Informal or Unregulated Foreign Exchange Market

Bureaux de Change

  • Bureaux de change not subject to the formal foreign exchange market are not supervised or regulated by any organization.
  • However, they are required to report suspicious operations to the FIU under Law 19.913.

Conclusion

Overall, Chile has implemented various regulations and laws to prevent money laundering and combat financial crime in the country. While some institutions may be exempt from certain regulations, most entities operating in Chile’s financial sector are subject to AML requirements.