Financial Crime World

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New Law in Chile Requires Companies to Implement Effective Compliance Programs

Santiago, Chile - A new law aimed at combating economic crimes in Chile has come into effect, requiring companies to implement effective compliance programs to avoid severe legal consequences.

The Law on Economic Crimes, which enters into force in August 2024, introduces significant changes to the country’s penal code. Companies must now have:

  • Adequate resources
  • A direct reporting line with top management
  • Necessary powers to act

Additionally, companies are required to engage independent third-party auditors and monitors to ensure their compliance programs are operating effectively.

Impact on Investment Climate

Chile has been a popular destination for foreign investment, thanks to its stable legal framework, low corruption levels, and laws aimed at combating corruption. The new law is expected to further enhance the country’s reputation as a business-friendly nation, attracting more foreign investment.

However, investors must familiarize themselves with the new law and ensure that the companies they invest in have implemented adequate compliance programs to align with Chilean legal standards. This includes investigating and reviewing third-party vendors to avoid potential liability.

Key Takeaways

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

  • Top executives and directors may face criminal responsibility for participating in illegal activities.
  • Companies must review and strengthen their corporate compliance programs to ensure they comply with the new law.
  • Companies must also take measures to ensure third-party contractors are properly investigated and familiarized with the company’s conduct expectations.

Contact Us

For more information on how we can assist US and global companies navigate Chile’s new Law on Economic Crimes and improve their compliance programs, please contact:

Note: Florencia Fuentealba is admitted to practice law in Chile.

This alert was republished by Latinvex.

Miller & Chevalier is a US law firm that provides legal advice and services. This communication is not intended as legal advice or an opinion on specific facts. For more information, please contact one of the senders or your existing Miller & Chevalier lawyer contact.