Financial Crime World

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New Law in Chile Aims to Prevent and Detect Criminal Conduct

Overview

The Chilean government has recently enacted a new law aimed at preventing and detecting criminal conduct, including economic crimes established under the Law on Economic Crimes.

Key Provisions

  • Companies must implement policies and procedures that must be shared with employees and included in employment contracts.
  • Establish reporting channels or other mechanisms for reporting suspicious activities.
  • Set up a disciplinary process.
  • Appoint one or more compliance officers who must be independent, have adequate resources, report directly to top management, and possess the necessary powers to act.
  • Undergo regular monitoring by third-party auditors to ensure that their compliance programs are operating effectively.

Impact on Investment Climate

Chile has been a popular destination for foreign investment due to its stable legal framework, low corruption levels, and laws aimed at combating corruption. The new law is expected to further combat corruption and related offenses, contributing to a broader and more established legal framework in Chile.

Foreign Investors Take Note

Foreign investors must familiarize themselves with the new law and ensure that the companies they invest in have implemented or are implementing comprehensive compliance programs that align with Chilean legal standards. This includes investigating and reviewing third-party contractors to avoid potential liability created by relying on these parties.

Key Takeaways

The implications of this new law are significant and far-reading, demonstrating a new approach to prosecuting economic crimes for both individuals and companies. Key points include:

  • Senior executives and company directors may be held criminally liable for engaging in misconduct.
  • Companies must review their corporate compliance programs to ensure they comply with the Law on Economic Crimes.
  • Companies must take steps to ensure that third-party contractors have been properly investigated and are familiar with the company’s expectations regarding conduct, as established under the Law on Economic Crimes.
  • Foreign investors must protect their investments in Chile by ensuring that companies they invest in have implemented or are implementing comprehensive compliance programs that include a system for managing third-party relationships.

Contact Us

For more information on how we are helping US and global companies navigate the new Chilean Law on Economic Crimes and improve their compliance programs, please contact:

Note: This communication is for general informational purposes only and does not constitute legal advice or an opinion on specific facts. The invitation to contact the firm and its lawyers is not a solicitation for legal work. Any new lawyer-client relationship will be confirmed in writing.