Financial Crime World

Here’s the article rewritten in markdown format:

Anti-Money Laundering (AML) Regulations in Chile

=====================================================

Chile is a member of GAFILAT, a FATF-style regional body, which has adopted the FATF’s risk-based approach to combat money laundering and terrorist financing.

Who’s Affected

All financial and legal entities must comply with AML regulations, including:

  • Banks
  • Casinos
  • Financial institutions
  • Other organizations that handle large amounts of cash or provide services that can be used for money laundering

Customer Due Diligence (CDD)

Institutions must conduct CDD on all new customers, which includes:

Individuals

  • Name
  • ID number or passport number
  • Citizenship
  • Profession/degree/occupation
  • Country of residence
  • Address in Chile or country of origin/permanent residence
  • Email or phone number
  • Purpose of the legal or contractual relationship or occasional transaction
  • Name of the legal entity
  • RUT or similar company number for foreign legal entities and proof of its constitution, form, and legal status
  • Description of the entity’s economic activities
  • Country of residence
  • Address in Chile or country of origin/permanent residence
  • Email/phone number
  • Purpose of the legal or contractual relationship or occasional transaction

Enhanced Due Diligence

Institutions must apply enhanced CDD measures when there is a high risk of money laundering, which includes:

High-Risk Situations

  • Politically Exposed Persons (PEPs)
  • Electronic funds transfers considered “high-risk”
  • Individuals and members listed in UN sanctions resolutions
  • Countries and jurisdictions under monitoring by the International Financial Action Task Force (GAFI)

Record Keeping

Institutions must keep records of CDD for a minimum period of five years and report suspicious transactions to the UAF.

Penalties

Hiding or disguising the origin of illicit funds in Chile is punishable by:

  • Five years and one day to fifteen years in prison
  • A fine of two hundred to one thousand monthly tax units

The final penalty will depend on the amounts involved, the size and nature of the entity, its economic capacity, the extent of the harm caused, and the seriousness of the consequences.

Frequently Asked Questions

Q: Is Chile a high-risk country for money laundering?

A: No, Chile is not on the FATF list of countries with strategic AML deficiencies.

Q: Is Chile a FATF country?

A: Yes, Chile is a member of GAFILAT and adheres to FATF standards.