Asset Recovery Techniques Under Scrutiny in Chile Amidst Financial Crimes
Struggling to Keep Pace with Asset Recovery Techniques
In recent times, Chile has seen a surge in financial crimes, making it challenging for the country to keep up with asset recovery techniques. Despite lacking comprehensive legislation specifically addressing this issue, victims of fraud can utilize general tools available under Chilean law.
Available Remedies for Asset Recovery
Criminal and Civil Actions
- Criminal remedies: allow for the possibility of filing parallel actions or after a criminal conviction has been obtained.
- Civil remedies: enable economic restoration and compensation for victims of financial crimes.
Insolvency Proceedings: A Crucial Tool
Insolvency proceedings have become increasingly important, particularly in cases involving multiple victims and cross-border components. These proceedings can help recover assets and provide compensation to affected parties.
Challenges in Initiating Precautionary Measures
A key challenge lies in the ability to initiate precautionary measures, which are available in both criminal and civil proceedings but often focus on determining criminal liability rather than economic restoration. The burden of proof rests with the party claiming harm.
Fintech Landscape and Institutional Modernization
The rapidly evolving fintech landscape is expected to drive institutional modernization, enabling more effective investigation and prosecution of crimes with cross-border implications. A recent bill introducing new cybercrimes legislation aims to enhance investigative capabilities and update the Chilean Criminal Code.
Limiting Liability for Payment Card Holders and Users
A law limiting liability for payment card holders and users has been enacted in response to rising electronic payment-related scams and thefts.
Conclusion
As Chile navigates these complex issues, experts warn that more effective asset recovery techniques will be essential to combating financial crimes effectively.