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Anti-Money Laundering Regulations in Chile

Chile has implemented various regulations to prevent money laundering and terrorist financing. This article outlines the key points of these regulations, including customer due diligence, enhanced due diligence for Politically Exposed Persons (PEPs), record-keeping, suspicious activity reports, and penalties for non-compliance.

Customer Due Diligence Requirements

Institutions in Chile must collect information on individuals and legal entities to verify their identity. The following details are required:

For Individuals

  • Name
  • ID number or passport number
  • Citizenship
  • Profession
  • Country of residence
  • Address
  • Email
  • Phone number
  • Purpose of the legal or contractual relationship
  • Name
  • RUT or similar company number
  • Description of economic activities
  • Country of residence
  • Address
  • Email/phone number
  • Purpose of the legal or contractual relationship

Enhanced Due Diligence for Politically Exposed Persons (PEPs)

Institutions must obtain additional information on PEPs, including:

  • Intended nature of the relationship
  • Origin of funds
  • Origin of assets
  • Purpose of the act or transaction
  • Senior management approval to begin or continue the legal or contractual relationship
  • Additional information from the client
  • More frequent updates of client information

Record-Keeping Requirements

Affected institutions must keep records for a minimum period of five years and inform the Financial Analysis Unit when required of any cash operation greater than $10,000 USD.

Suspicious Activity Reports (SARs)

Institutions must have appropriate software to develop warning systems that identify and detect suspicious transactions. If a customer refuses to provide information or submits something false during CDD, it should be considered as an alert and sent to the UAF by means of a SAR.

Penalties for Non-Compliance

Hiding or disguising the origin of illicit funds in Chile is punishable by five years and one day to fifteen years in prison, and a fine of two hundred to one thousand monthly tax units. The final penalty will depend on the amounts involved in the crime of money laundering, the size and nature of the entity, its economic capacity, the extent of the harm caused, and the seriousness of the consequences in case of public enterprises.

Chile’s Anti-Money Laundering Status

Chile is not considered a high-risk country for money laundering and is a member of GAFILAT, an associate FATF-member.